- What is customer loyalty?
Defining Customer Loyalty
Loyalty consists of deploying a process and marketing and commercial actions in order to:
- Construire une lasting relationship with them,
- Encourage them to renew their purchases in a more or less long period of time.
Indeed, a loyal customer is a customer won over, confident, sure of their purchasing choices. He buys regularly from the same brand because he is “attached” to it. All customer loyalty work therefore consists of creating and perpetuating this state. Note that nowadays, loyalty does not only concern marketing, but also customer relationship management. Moreover, we are talking more and more about customer marketing which, unlike product marketing, is more attentive to consumer aspirations.
- The different forms of customer loyalty
There are two main forms of customer loyalty, which do not involve the same issues for brands.
- Induced loyalty.
In this scenario, the consumer has no choice. Loyalty is “ suffered" ».
It could be:
- A contract system that binds the customer to the company,
- Geographical constraints,
- The monopoly of a brand, etc.
Consequence: the customer is sometimes dissatisfied with the brand or brand, but nevertheless remains loyal to it.
- Loyalty sought after.
Here, the customer is more free in his choices. It is through marketing actions and strategies that loyalty operates.
The sought-after loyalty constitutes the ideal situation, since here the consumer has established a sincere relationship with the brand, a consequence of his satisfaction.
It is this objective that companies must achieve: it is a guarantee of a more lasting relationship with the customer, rich in benefits.
- The importance of customer loyalty
The result of customer loyalty for a business is manifold. The profitability is the best developer.
- Customer loyalty as a sales lever.
Loyalty actions trigger or reinforce a loyalty effect at your customers. Especially if satisfaction with the purchase is high. The positive customer experience is the best competitive advantage.
- Customer loyalty as an anti-crisis solution.
In a market of uncertainties and crises, your loyal customers are the best resources for resist turbulence over the medium and long term.
In fact, it is even more difficult to win over new customers in times of crisis. Customers need to be reassured by a positive purchasing experience they have already had. Enjoy!
- Customer loyalty as a driver of internal cohesion
Loyalty improves the feeling of belonging within your teams. Positive reputation improves the self-esteem of your employees. At Orange or MTN Cameroon for example, employees can even participate in the loyalty program to become ambassadors and influencers of the brand. The consumer experience becomes theirs.
- The marketing strategy to retain customers.
Building customer loyalty means nurturing why from the customer:
- Why did he buy your product?
- What are its values?
- What is his universe?
- What are his dreams?
Customer loyalty is based on intimate knowledge of the customer. You must have the ability to meet their deep expectations.
- Implementation of the customer loyalty strategy
Customer loyalty must be based on a marketing strategy consistent with your business positioning and with the profile of each customer.
- L’importance de fixer des objectifs
Grâce aux données marketing, définissez les profils types de votre clientèle. Cette étude de marché vous permet de déterminer les attentes de chaque grand profil client en termes de fidélisation.
Choose a goal adapted to each profile.
- Transactional objective
- Informational objective
- Relationship goal
- Choose relevant communication channels.
To finalize your marketing thinking, determine which communication channels are suitable for each major customer profile: newsletter, e-mailing, blog, dedicated online application, SMS, social networks, private event, master class.
- The marketing principles of customer loyalty.
While respecting the segmentation of the customers to be retained, implement the following marketing principles into actions:
Make the customer experience a special moment. The quality of your product or service must be impeccable. Transform complaints into satisfaction opportunities. Create a true customer culture within your company.
- Personalize the relationshipwith your customers. Use data from your CRM (customer relationship management). The customer must obtain added value in each contact with your company: reassure the customer in their choice and create positive feelings!
- Value loyal customers. Based on each person’s customer lifetime value, reward the best.
- Collect feelingsof your loyal customers.
- Measure your actionsloyalty. Calculate the redemption rate and loyalty rate of your customers.
