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Likitha A
Likitha A April 20, 2023

Trust and commitment are key to loyalty, whether in a relationship or a business. 

Businesses no longer focus on selling one product to a customer and moving on to the next. 

It’s proven that retaining customers is equally, if not more, important than acquiring one. While acquisition helps you increase your brand awareness and number of customers, retention lets you maximize the value of customers you have already acquired and reduce churn. 

But why are we even talking about retention? Because it is the gateway to customer loyalty!

Almost 88% of customers say it takes three or more purchases to trust and become loyal to a brand. And for that, delivering value throughout the customer journey and making your customers return for more is a must!

This blog will discuss proven strategies to keep your customers loyal and some exciting examples!

How To Keep Your Customers Loyal?

Well, we do have the answer to that question. But before hopping onto that, find out what customer loyalty is all about and what it means to businesses in 2023!

Read Now: What is Customer Loyalty, and Why is it Important in 2023?

Now, let us look at some effective strategies you can use to keep your customers loyal.

#1 Win with Gamification 

We know how crucial retention is to your business, but to retain your customers and strengthen brand loyalty, engaging your customers and delivering value is paramount. 

Introducing elements such as points, leaderboards, rewards, etc., can help you seamlessly engage your customers. 

For example, offering points for every purchase your customer makes can be redeemed for discounts or free items. You can also create a leaderboard showing the top customers based on the points earned, creating a sense of competition and motivating them to earn more points.

Gamification does not only help you engage your customers but also allows you to build stronger relationships and ultimately gain trust and loyalty.

Get started here: Top 3 gamification techniques to boost your loyalty program.

#2 Personalization is Paramount 

We can’t stress enough how important it is to prioritize personalization

It is so very important to show your customers that you care for them and their preferences, and the only way to do so is by tailoring their experiences at every touch point. Of course, without being too intrusive. 

It could be addressing them by name, sending them targeted email campaigns, recommending relevant products, etc. 

You can tailor their experiences by collecting and analyzing customers’ past purchases, behaviors, sentiments, and demographics for different business purposes.

Know in detail: Web Personalization: The Key to Boosting User Engagement in 2023

#3 Communicate Effectively

As mentioned earlier, trust and commitment are key to loyalty, and what better way to boost it than by communicating your value effectively to your customers?

Updating your customers on products and services through channels like in-app messages, push notifications, and emails is a great way to keep them engaged and interested in what you have to offer. 

Listening to and responding to customer feedback through these channels can help you identify and address the issues that lead to churn.

Customers are your most valuable asset, so provide them with the information they need to make informed decisions. This helps you reduce churn and boost customer loyalty.

#4 Make it a Two-Way Road

Brands that listen to their customers grow 10X faster!

Customer engagement involves both listening to your customers and communicating with them. 

Feedback can come in various forms, such as NPS (Net Promoter Score), CSAT (Customer Satisfaction), feedback surveys, ratings, reviews, and opinion polls.

These tools can help you gauge how your customers feel about your products/services and what changes they would like to see.

Well, collecting feedback is just not enough. You must also act upon it and communicate your changes based on customer feedback. This shows customers that their opinions have been heard and acted upon.

Find out more: How To Measure Customer Loyalty: 5 Important Metrics

#5 Build a Sense of Community 

Building a sense of community is an often overlooked but powerful strategy for boosting customer loyalty.

When your customers feel like they are part of a community, they are more likely to stay loyal to your business and advocate for your brand.

For example, you can host webinars or create opportunities for customers to connect with your business and each other. 

This way, you tap into customers’ social needs and create a sense of belonging that can drive customer loyalty.

Also Read: Customer Engagement vs. Customer Satisfaction

Brands that Got Loyalty Right!

#1 Amazon

Amazon has built customer loyalty through its Prime membership program.

Prime membership program offers a range of benefits, including fast delivery, free shipping, access to streaming video and music, and exclusive discounts.

This has been a key factor in building customer loyalty, as customers are willing to pay for the convenience and savings of Prime membership.

#2 Starbucks 

Starbucks is the most popular and widely used example of customer loyalty. Here are some of their successful loyalty strategies! 

  • Earn stars: Members earn stars for every purchase they make at Starbucks. The number of stars earned varies depending on the purchase, with more stars awarded for larger purchases.
  • Tiered rewards: They have a tiered rewards system with different benefits at each tier. The tiers are Green, Gold, and Starbucks Reserve. Members can earn rewards such as free drinks, food items, exclusive offers, and events.
  • Personalized offers: Members receive personalized offers and promotions based on their purchase history and preferences. This helps to keep customers engaged with the program and encourages them to make repeat purchases.
  • Free birthday reward: Starbucks Rewards members receive a free drink or food item on their birthday, which has been a popular feature of the program

#3 Sephora 

As part of the loyalty program, Sephora’s users earn one loyalty point per $1 spent on the app/website, and these points can be used to redeem benefits like free shipping, discounts, etc. 

And they also offer discounts on the first purchase to acquire new customers 

Furthermore, users are promoted to the next privilege level (VIB, Rouge) with even more rewards based on their purchase history. This loyalty program creates a sense of excitement and anticipation for users, making them more likely to return and spend more money on the site.

#4 Teleflora

Teleflora uses a social loyalty system to motivate users to take actions such as reviews, comments, and posts in the user Q&A section.

They award users extra points for engaging in certain activities, such as leaving reviews, posting on social media, and answering other customers’ questions. 

Users who offer the first review or answer questions in the user Q&A section are rewarded with bonus points. It also used gamification elements such as points and leaderboards to reward users with higher-level badges and titles.

This led to an increase in social referrals and an increase in the number of pictures and videos uploaded. Teleflora’s points-based reward system helped increase Facebook traffic by 105% and the conversion rate by 92%.

Conclusion

Customer loyalty is crucial for any business that wants to gain its customers’ trust and grow in the long run. Implementing the abovementioned strategies can help you tackle churn, retain your existing customers, and attract new ones. 

Ultimately, by prioritizing customer loyalty, you can build lasting relationships with your customers and create a loyal customer base that can help you thrive in today’s competitive marketplace.

Upshot.ai can help you tailor and leverage strategies that fit your goals, industry, and customer base leading to product success. 

The Upshot.ai Advantage

Upshot.ai is an omnichannel, customer engagement, and gamification platform.

With Upshot.ai, banks, Insurance, and FinTech firms can enhance their digital experiences with pre-built gamification features.

It can provide personalized insights, actionable recommendations, and contextual nudges designed to deepen its relationship with its users.

Book a demo of the most comprehensive user engagement and gamification platform to achieve your digital product goals.

Join our communities for more insights, guides, and best practices that keep you updated with proven strategies and tips to supercharge your campaigns.

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