9 Ways to Retain Your Brand's Customers (2024)

‍“Loyal customers are those who share your business values.” This reflection highlights the importance of creating strong relationships with your customers.

Two figures illustrate the impact of loyalty:

• A minority of customers (20% ) can generate the majority (80%) of your future profits
• 80% of a company's activity comes from 20% of its customer base

This data highlights the value of a solid loyalty program in increasing profitability. However, many businesses are struggling to retain their current customers.

Why is it so difficult to build loyalty?

The challenges are multiple. Competition is intensifying, consumer expectations are changing rapidly, and communication channels are multiplying. In this context, understanding the barriers to retention is critical.

Let's take a look at the top factors that complicate customer retention today, and discover 9 effective strategies to build brand loyalty.

Let's get started.

What are the challenges in order to retain customers?

The digital age has profoundly changed consumer behavior. Today, they have access to a wealth of brand information, spread across various online platforms. This abundance of information directly influences their buying decisions and their loyalty.

Despite this, brand loyalty remains an important factor in retail. Businesses that succeed in providing an exceptional customer experience and fully satisfying their customers reap the benefits. A study by InMoment reveals that 75% of loyal customers actively recommend their favorite brand to those around them.

However, it would be unwise to take loyalty for granted. The current market offers consumers:

• A wider choice than ever
• Expectations that are constantly evolving
• An ease to change brands in case of dissatisfaction

These factors have created a generation of demanding consumers who are ready to explore other options at the slightest misstep by a brand.

Even big companies, despite their substantial advertising budgets, are facing this retention challenge. The situation is all the more complex as unhappy customers quickly share their negative experiences across multiple digital platforms, making it difficult for brands to control their image.

In this context of strong competition, where the acquisition of new customers is expensive, the profitability and relevance of a business largely depend on its loyal customer base.

This reality highlights the critical importance for businesses to constantly develop and improve their loyalty programs. It has become a strategic imperative to remain competitive in their target markets.

9 ways to keep customers coming back.

While retaining your customers digitally can be difficult, the fact remains that it brings huge business benefits. Here are four major benefits of customer retention for your brand.

1. Increase business profits.

Customer loyalty is a powerful driver for financial growth. A study by the Harvard Business School reveals that a 5% increase in retention rate can increase profits by 25% to 95%.

Econsultancy confirms this trend: 82% of businesses recognize that keeping a customer is less expensive than acquiring a new one.

• Focus on your loyalty programs
• Get inspired by successful models like Starbucks

Starbucks, for example, offers personalized offers and rewards in the form of free drinks and meals, strengthening the attachment of its customers.

2. Increase the likelihood of selling to existing customers.

Your current customers are your best business asset. The probability of selling to an existing customer is 60% to 70%, compared to only 5% to 20% for a new lead.

Why such a difference?

• Your customers already know your brand
• They have experienced your products or services
• Trust is established

This familiarity makes them more receptive to your new offers and recommendations.

3. Reduce the cost of acquiring new customers.

Retaining loyalty is less expensive than acquiring. Studies show that it is 5 times more expensive to attract a new customer than to keep an existing one.

While acquisition is still important, your primary strategy should focus on retention. This approach allows you to optimize your budget marketing and to improve your long-term profitability.

4. Increase positive customer feedback.

Customer feedback Are a powerful marketing tool. Customers who are happy with your product, service, or their interaction with your brand are more likely to:

• Sharing their positive experience
• Respond to your satisfaction surveys
• Recommend your brand to those around them

These reviews authentic ones are valuable for improving your offer and attracting new customers.

5. Offer customers an omnichannel marketing experience.

Reward loyalty in a tangible way. A well-designed rewards program can significantly increase customer engagement. Consider:

• Offer cumulative points on purchases
• Offer exclusive discounts to members
• Create status levels with increasing benefits

Make sure rewards are easily accessible and truly rewarding for your customers.

6. Build a community of ambassadors through a solid loyalty program

An effective loyalty program is more than just a points and rewards system. It creates memorable experiences that encourage customers to spontaneously talk about your brand.

To be successful, your program must meet several essential criteria:

• Integrate naturally into the daily life of your customers
• Meet their specific and evolving needs
• Bringing significant and lasting value
• Be simple to understand and use

Perceived value is critical. Your customers should feel that they are earning more than they are giving. This positive perception reinforces their attachment to your brand.

Inspiring examples:

1. Amazon Bonus:
   • Multiple offer: fast delivery, video and music streaming
   • Benefits that far exceed the annual membership cost
   • Creates a complete ecosystem around the customer
2. TOMS:
   • Associate each purchase with a charitable action
   • Give $1 for each 3$ earned
   • Allows customers to contribute to a cause while consuming

These approaches create a strong emotional connection between the customer and the brand, going beyond the simple commercial transaction.

Optimize your mobile application:

Your application is a powerful loyalty tool. To make it effective:

• Ensure a great user experience
• Integrate useful and exclusive features
• Reward regular use of the app
• Personalize the experience based on user habits
• Facilitate access to the benefits of the loyalty program

Test and adjust continuously. Gather user feedback and adapt your program accordingly. A loyalty program is never fixed, it evolves with your customers.

By implementing these strategies, you will transform your satisfied customers into true ambassadors, ready to actively promote your brand to those around them.

7. Develop an effective referral program

Sponsorship is different from loyalty by its purpose: it encourages existing customers to attract new customers, creating a snowball effect.

A successful referral program is based on three pillars:

1. Targeted promotions: adapted to the profile of the sponsor and the sponsor
2. Personalized incentives: attractive rewards for both parties
3. Strong network of ambassadors: satisfied customers ready to recommend

Program design is critical. It should be:

• Simple to understand
• Easy to share
• Mutually beneficial

Concrete examples:

1. Bombs:
   • 25% off for new referred customers
   • $20 credit for the sponsor
   • Double advantage that motivates sharing
2. Riff Raff & Co. :
   • A toy gratuitous (value $68) for five successful sponsorships
   • Strong incentive for satisfied parents
   • Encourages sharing in parent communities

Choose the right incentives:

• Free products: ideal for brands with desirable items
• Cash rewards: appealing to a broad audience
• Discounts: effective in encouraging repeat purchases
• Exclusive experiences: creates a sense of privilege

Facilitate the sponsorship process:

• Provide easy sharing tools (links, codes, etc.)
• Automate referral tracking
• Communicate clearly about evolution and rewards

Measure and optimize: Track key metrics (conversion rate, acquisition cost, customer lifetime value) and adjust your program accordingly.

A well-designed referral program can become a powerful and economic growth engine for your business.

8. Use customer feedback to improve your brand

MiaoMiao features customer testimonials on its homepage

Listening actively to your customers has become essential. It not only allows you to improve your products and services, but also to strengthen the relationship with your customers.

Advantages of a strategy based on customer feedback:

• Show that you value the opinion of each customer
• Strengthens the sense of belonging to the brand
• Turn customers into active brand advocates
• Quickly identify areas for improvement
• Enables innovation guided by real needs

Establishment of an effective collection system:

1. Diversify your collection channels: Personalized emails, Post-purchase satisfaction surveys, Social media surveys, Forms on your website, Reviews on specialized platforms
2. Ask the right questions: Be specific and concise, Alternate open and closed questions, Adapt the questionnaire to the customer journey
3. Optimal timing: Seek feedback soon after the interaction or purchase, Avoid overloading the customer with requests

Management of negative reviews:

• Respond quickly and in a personalized way
• Recognize the problem and offer concrete solutions
• Follow the evolution of the situation until resolved
• Turn negative experiences into opportunities for improvement

From collection to action:

1. Regularly analyze the feedback received
2. Identify trends and recurring issues
3. Develop an action plan to address the issues raised
4. Communicate about the changes made following the feedback

Value participation: Thank customers for their feedback and show them the impact of their contribution on the evolution of your offer.

By effectively integrating customer feedback into your strategy, you create a virtuous circle of continuous improvement and loyalty.

9. Personalize your marketing strategies

Personalized marketing has become essential in an environment where consumers are bombarded with advertising messages. It allows you to create a unique connection with each customer.

Foundations of an effective personalization strategy:

1. Relevant Data Collection: Purchase Preferences, Transaction History, Transaction History, Browsing Behavior, Demographics, Customer Service Interactions
2. Analysis and segmentation: Use advanced analysis tools to identify patterns, Create accurate customer segments, Continuously refine your segments based on new data
3. Creating tailored content: Develop specific messages for each segment, Adapt the tone and style to each target group, Prepare several variations to test their effectiveness
4. Choosing appropriate channels: Identify the preferred channels for each segment, Adapt your approach to each platform (email, social networks, website)

Successful examples of personalization:

1. Netflix: Uses a sophisticated recommendation algorithm, Analyzes viewing habits to suggest relevant content, Even customizes the visuals of movies and series according to user preferences
2. Coca-Cola “Share a Coke” campaign: Enabled consumers to personalize bottles with first names, Created strong engagement on social media with the hashtag #shareacoke, Boosted sales by turning a mass product into a personal item

Importance of personalization in email marketing:

• Personalized emails can generate up to 6 times more transactions
• Personalize beyond the simple first name: content, offers, delivery times
• Use past behavior to predict future interests

Respect for privacy:

• Be transparent about data collection and use
• Give users control options
• Strictly comply with regulations (RGPD, etc.)

Measurement and optimization:

• Track key metrics: open rate, click rate, conversions
• Conduct regular A/B testing to refine your approach
• Adjust your strategy according to the results obtained

By implementing a thoughtful and scalable personalization strategy, you create a unique customer experience that builds loyalty and drives business growth.

Conclusion

Brands that want to build a loyal customer base need to actively invest their time and effort in strategies that encourage brand loyalty.

Regardless of the size of your business, by implementing customer loyalty measures, you can build a group of loyal customers who will become the best ambassadors for your brand.