9 September 2020
CUSTOMER LOYALTY: THE 5 KEY STRATEGIES
Even before the scenario companies face - the result of the severe global recession caused by extensive global paralysis - customer loyalty was already an imminent necessity. As a consequence of the pandemic, it has become a determining factor for the vitality of business.
Customer retention in numbers
Several studies show that increasing the investment in customer loyalty by 5% can boost the company's profits by between 5 and 95%. A direct investment in customer experience - a key factor that measures satisfaction with the brand and keeps the consumer tempted to repeat the purchase, recommend the product and even pay for a premium service.
In an opinion piece written for TyN Magazine, Ana Paula Kagueyama, PayPal's Global Operations Director for Latin America, recalls that the Covid-19 pandemic has led many people to "reconsider needs, and go back to having the most basic priority, having enough health and food, leaving everything else aside.
And he stresses that, in recent times, "an appropriate approach to the customer can immediately generate feelings of trust and loyalty. The aim is to provide experiences and services that meet their new needs with care and sincere concern".
5 tips to build customer loyalty
1. Developing relations
One of the main challenges faced by businesses is the in-depth knowledge of the consumer, combined with the channels they use and the message they convey. As Guillem Gallego, Chief Marketing Officer of Desigual, says "the key will always be who speaks, through which channels and, above all, what values they propose". Gallego argues that "it is necessary to cultivate personal and authentic relationships with customers and feed these relationships with constant feedback based on truth".
Given the high level of demand, it is necessary to stop considering the client as a number, and to "treat him/her as a person, seeking to offer him/her what he/she really needs". The purchasing process may take even longer, but in the end it will be worthwhile, with the creation of bonds that take "matching" to another level.
2. Listening to the customer
Listening remains a commandment and not a mere possibility. "Listening and creating relationships based on empathy will allow organizations to provide products and services that truly meet customer needs, and generate connections, without seeming indifferent," shares PayPal's Director of Global Operations for Latin America in the aforementioned opinion article.
One of Bill Gates' key lessons in this regard is the basic foundation of listening to customers, especially the dissatisfied, who, in the opinion of Microsoft's co-founder, end up being "his greatest source of learning.
3. Sharing values
Today, customers favour brands with values that make positive contributions to society and the world. Hence the importance of creating companies with DNA and culture rooted in wellness foundations.
Although a priori it may not seem so, this is a triggering factor, which can influence purchasing decisions and, in turn, contribute to customer loyalty. Corporate responsibility is increasingly a trend, which should be taken as a commitment.
4. Personalised attention
During the "Dialogues of the future KPMG con La Vanguardia", Enrique Porta, responsible for the Consumer area at KPMG in Spain, recalled that as a result of digitalisation, consumers are increasingly demanding, a scenario that has become even more pronounced with the pandemic.
"The Internet and mobile devices have accelerated all processes. This means that consumers are increasingly hyper-connected, with an increasing ability to use technology whenever they feel it makes their lives easier. They are well informed: they decide what information they are looking for and what they buy. They are also aware of how powerful they are and what their decisions involve. This makes them more and more demanding with brands. They want to be treated in a personalized way and in real time. They are looking for experiences associated with their preferences dw purchase", argues Porta, reinforcing the urgency of transforming companies into a logic of inclusion of unique, differentiated and personalized experiences.
5. Exceeding expectations
Quoting Nelson Boswell in his book Successful Living Day by Day, "try to give people more than they expect to receive". And to do so, the key is to establish realistic expectations, not merely to satisfy them, but rather to try to overcome them, preferably in "unexpected and useful ways", as English businessman Richard Branson argues.
Constantly improving, surprising and innovating are the only ways to convince consumers that the brand has a clear vision of how it should act towards its customers.
Customer retention in numbers
Several studies show that increasing the investment in customer loyalty by 5% can boost the company's profits by between 5 and 95%. A direct investment in customer experience - a key factor that measures satisfaction with the brand and keeps the consumer tempted to repeat the purchase, recommend the product and even pay for a premium service.
In an opinion piece written for TyN Magazine, Ana Paula Kagueyama, PayPal's Global Operations Director for Latin America, recalls that the Covid-19 pandemic has led many people to "reconsider needs, and go back to having the most basic priority, having enough health and food, leaving everything else aside.
And he stresses that, in recent times, "an appropriate approach to the customer can immediately generate feelings of trust and loyalty. The aim is to provide experiences and services that meet their new needs with care and sincere concern".
5 tips to build customer loyalty
1. Developing relations
One of the main challenges faced by businesses is the in-depth knowledge of the consumer, combined with the channels they use and the message they convey. As Guillem Gallego, Chief Marketing Officer of Desigual, says "the key will always be who speaks, through which channels and, above all, what values they propose". Gallego argues that "it is necessary to cultivate personal and authentic relationships with customers and feed these relationships with constant feedback based on truth".
Given the high level of demand, it is necessary to stop considering the client as a number, and to "treat him/her as a person, seeking to offer him/her what he/she really needs". The purchasing process may take even longer, but in the end it will be worthwhile, with the creation of bonds that take "matching" to another level.
2. Listening to the customer
Listening remains a commandment and not a mere possibility. "Listening and creating relationships based on empathy will allow organizations to provide products and services that truly meet customer needs, and generate connections, without seeming indifferent," shares PayPal's Director of Global Operations for Latin America in the aforementioned opinion article.
One of Bill Gates' key lessons in this regard is the basic foundation of listening to customers, especially the dissatisfied, who, in the opinion of Microsoft's co-founder, end up being "his greatest source of learning.
3. Sharing values
Today, customers favour brands with values that make positive contributions to society and the world. Hence the importance of creating companies with DNA and culture rooted in wellness foundations.
Although a priori it may not seem so, this is a triggering factor, which can influence purchasing decisions and, in turn, contribute to customer loyalty. Corporate responsibility is increasingly a trend, which should be taken as a commitment.
4. Personalised attention
During the "Dialogues of the future KPMG con La Vanguardia", Enrique Porta, responsible for the Consumer area at KPMG in Spain, recalled that as a result of digitalisation, consumers are increasingly demanding, a scenario that has become even more pronounced with the pandemic.
"The Internet and mobile devices have accelerated all processes. This means that consumers are increasingly hyper-connected, with an increasing ability to use technology whenever they feel it makes their lives easier. They are well informed: they decide what information they are looking for and what they buy. They are also aware of how powerful they are and what their decisions involve. This makes them more and more demanding with brands. They want to be treated in a personalized way and in real time. They are looking for experiences associated with their preferences dw purchase", argues Porta, reinforcing the urgency of transforming companies into a logic of inclusion of unique, differentiated and personalized experiences.
5. Exceeding expectations
Quoting Nelson Boswell in his book Successful Living Day by Day, "try to give people more than they expect to receive". And to do so, the key is to establish realistic expectations, not merely to satisfy them, but rather to try to overcome them, preferably in "unexpected and useful ways", as English businessman Richard Branson argues.
Constantly improving, surprising and innovating are the only ways to convince consumers that the brand has a clear vision of how it should act towards its customers.
