How positive customer experience drives loyalty
There are two types of loyalty when it comes to your business: Customer and Brand.
Customer loyalty relates to consumers who buy from you because you are the lowest price, or offer the best discounts. These buyers are often only loyal to your business while you continue to offer the best value.
Brand loyalty, however, is generally not impacted by price. Instead it is based on the overall perception consumers have of your business, and includes things such as your reputation and the quality you deliver.
To sustain brand loyalty, businesses must remain consistent in the areas their returning customers enjoy most – it is not a one-off exercise; a customer-centric approach is needed. Consider how your customers will react to changes you make to your products or prices, or if your service times increase (for example), and avoid actions that will drive your customers to another business who can offer them similar, such as drastically changing a top product.
Consumers who are loyal to your brand will often spend bigger and wider with you, refer you to others and stay with you regardless of price, so it is worthwhile going above and beyond to maintain them.
So where does Customer Experience (CX) come into it?
Often confused with customer service, CX goes further. Our friends at DABS define CX as being every interaction or experience your customers have with your business in this article. From clicking on your website through to receiving their product / service and beyond, it is quite important in the retention of your customers.
The benefits of effective customer experience, according to Hotjar, include increases in:
- repeat custom
- positive reviews
- customer satisfaction
- word-of-mouth marketing, positive reviews, and recommendations.
CX is, unsurprisingly, customer-centric, and is more about the “extras” a customer would receive from buying from you, such as the way you respond to problems or personalised upgrades, rather than focusing on being the lowest price on the market.
Gaining feedback from your customers is the top driver for successful CX strategies, according to Hotjar’s trends and stats in customer experience, so by listening to your customers, you will know how to ensure your CX is good enough.
Demonstrating the link between the two, almost like a formula, customer experience = increased spend and allegiance to your business = brand loyalty. It literally pays to ensure your customers continually have an excellent experience with your business, and this is how CX builds the strongest kind of loyalty.
Applying to an incubator programme, such as our own, will help you every step of the way with understanding this process, as well as give you access to established business people in the region who advise you on your journey. You can apply for our next cohort here. In the meantime, grow your knowledge through our varied library of blogs, or contact us with any questions.