It’s getting more difficult to earn and keep loyal customers. Consumers these days have so many choices for their shopping needs that it only takes that deep discount, or shiny bauble, to lure them to your competition.
As businesses scramble to create positive customer experiences by ensuring superior customer service, consumers increasingly realize they are in control of that shopping experience. And, they aren’t afraid to flex that decision making control and take their business elsewhere.
So, what then do consumers want from businesses in exchange for their loyalty?
A recent article on Business2Community shed some light on that subject with a list of the 8 things that greatly influence what consumers want in exchange for their loyalty, based on a compilation of results from several studies. They are:
- 77% of customers want a great product.
- 73% of customers want kind customer support.
- 69% of customers want to be recognized by brands.
- 69% of customers would stay with a brand for loyalty rewards and points.
- 64% of customers want shared values with brands.
- 62% of customers want online content from brands.
- 48% of customers say that their first purchase is what determines their loyalty.
- 41% of customers want personalized emails based on their browsing and purchasing history.
Almost half of consumers surveyed stated that their first purchase experience will dictate whether they stay a customer. After their experience, they must feel that they received a great product, feel appreciated, get rewarded for their loyalty and feel that the brand shares their values. In continuing and strengthening the relationship, consumers want to see online content and receive personalized and relevant communications based on their purchasing history.
This customer lifecycle is no different regardless of if that business is a restaurant, or a car dealership. The fact is that we can get so focused on the next sale, or customer, that we forget about the one that we just purchased or serviced their vehicle. These customers can easily feel abandoned by the business if that attention is redirected away from them.
According to the article, 20% of your loyal customer base will comprise 80% of your revenue. Of course, if you aren’t actively trying to retain your customers, you’ll be continuously spending money in order to acquire new ones — who may or may not become loyal to your business. If there was a clear definitive report that showed that 80 percent of your revenue was coming from existing customers, and only 20 percent from new ones, wouldn’t it be unwise to just focus on the small piece of the pie?