The 10 essential benefits of building customer loyalty

What is customer loyalty?

Customer loyalty is the willingness of a customer to repeatedly purchase a product or service from a company over a long period of time.

It's a long-term commitment by consumers, and the result of a positive relationship between customer and brand.

The most devoted are likely not only to buy, but also to recommend it to their friends and advocate it on social networks. They may even become brand ambassadors and help spread the word about the company!

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The 10 benefits of customer loyalty

Building customer loyalty is much more than ensuring their satisfaction: it's about building a lasting relationship.

These loyal customers come back, recommend you and become your best ambassadors.

Let's discover together the key benefits of loyalty that make all the difference to your business.

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1. Customer loyalty reduces marketing costs

It's no secret that acquiring new customers costs more than retaining existing ones.

With loyal customers, companies don't need to spend as much on marketing and can concentrate on satisfying and selling additional products.

They can count on a steady income, for more serene days ahead.

And let's not forget that regular consumers are likely to recommend the company, which can be beneficial in the long term!

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2. Customer loyalty generates more profits

Loyal customers are more likely to buy additional products, services and features.

One study shows that :

• an increase in customer retention of just 5% boosts a company's profits by 25% to 95%!
  
• the chances of selling to existing customers are much higher than those of selling to new prospects (60-70% vs. 5-20%).
  
• existing customers are much more likely to try and buy new items in the collection than new buyers (50% vs. 31%).
  

Taking steps to build customer loyalty is therefore an excellent way to increase profits and grow your business.

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3. Building customer loyalty deepens customer relationships

Let your customers know that you care about them by paying attention to what they want and need.

By showing that you care about them, you'll strengthen your relationship and their long-term loyalty.

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4. Building customer loyalty increases ROI

It's a fact: most companies don't have a lot of resources to acquire new customers. That's why it's essential to retain those you do manage to convert, and increase revenue via recurring purchases.

The most dedicated are invaluable - not only will they buy your products and services, but they'll also spread the word and recommend your brand to friends and family. Customer loyalty has a huge effect on sales and the overall success of a business.

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5. Building customer loyalty increases Customer Lifetime Value

Customers who are devoted to a business will be more likely to repeat purchases, recommend it to friends and family, and provide positive reviews and feedback.

This can lead to increased sales and long-term Customer Lifetime Value. It also helps companies build relationships with their customers and create a sense of trust, which can lead to even bigger purchases in the future.

Loyal consumers are also more likely to stick by a brand, even when competitors offer better deals or products. This loyalty can help companies retain their customer base, which in turn increases CLV.

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6. Building customer loyalty creates brand ambassadors

Having a base of regular customers is a great opportunity to take your brand to the next level!

These will be your best salespeople, helping you spread the word about your products and services. It's one of the best investments you can make.

Here's an example of a loyal customer transformed into a brand ambassador:

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7. Building customer loyalty brings invaluable returns

Customer loyalty is a fantastic way to gain valuable insights into your customer base.

It's the ideal way to get a clear picture of what your target audience likes and dislikes, and how you can tailor your products and services to give them the best possible experience.

Plus, it's a great way to show them you care!

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8. Building customer loyalty boosts employee morale

Customer loyalty also boosts employee satisfaction. People want to work for a brand they're passionate about and attached to - it looks better on their CV and they feel part of something positive.

When there are repeat customers, employees know that their efforts are appreciated by them. As a result, they take greater pride in their work and their company.

It can also lead to better communication between employees and customers. By becoming more loyal, the latter will be more inclined to provide feedback and suggestions that will help employees improve their performance.

Finally, customer loyalty helps create a strong corporate culture. When customers are loyal to a brand, they become advocates of the brand and its values. This helps create a sense of camaraderie among employees who share the same values and goals.

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9. Building customer loyalty strengthens the employer brand

Today, it's all about reputation, and that goes for candidates too. In today's competitive job market, employers therefore need every advantage they can get.

Imagine two employers competing for the same candidate.

One has a client base that sings its praises, while the other can't sell twice to the same customer. Which one is more attractive to new recruits?

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10. Building customer loyalty helps you stand up to the competition

When your customers are loyal to your brand, you get more than just better customer loyalty, you get better resistance to competition.

The most loyal are likely to stay attached to your brand and reject offers from other brands, guaranteeing greater loyalty and better chances of success for your business.

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How do you retain your customers (and maintain loyalty)?

We know that it's easier and cheaper to retain customers than to find new ones, and that having a solid base of regular customers is a huge competitive advantage.

So how do you keep your customers coming back? Here are a few tips to help you do just that:

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Simplify the customer journey to reduce friction points

A smooth customer journey is essential to guaranteeing a pleasant, loyalty-building shopping experience.

Analyze your CRM data to identify obstacles and make concrete improvements: simplifying payment steps, clarifying your offer, making routine information readily available or optimizing navigation.

By implementing targeted actions to reduce friction, you increase customer satisfaction and strengthen their attachment to your brand.

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Provide quality customer service

If you want to retain your customers and keep them coming back, you need to go above and beyond when it comes to customer service!

This means always offering the best possible experience and showing them that you value and care about them.

It'll encourage them to stick with you for the long haul.

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Rewarding customers

Showing your customers that you appreciate them is a great way to keep them coming back. And rewards are the best way to do it!

By offering them special offers and discounts, you show them that you appreciate them and encourage them to continue supporting your company.

It's a win-win situation!

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Strengthen loyalty with exclusive experiences

Offering unique experiences is a key action for building customer loyalty while enhancing your brand.

Offer private events, previews or limited-edition products that put them at the center of your relationship strategy.

This kind of approach creates a strong emotional bond and positions your company as a benchmark.

These exclusive initiatives also help to enhance your brand's overall image.

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Capitalize on emails and SMS to maintain the relationship

Emails and SMS are central elements of a good loyalty strategy.

These marketing actions enable you to maintain a constant link with your customers through purchase reminders, personalized notices or promotional codes.

By segmenting your contacts with a CRM, you can tailor your communications to be relevant and engaging.

Be sure to dose your messages to avoid being intrusive while reinforcing their place in your ecosystem.

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Get inspired by 10 Whatsapp and SMS templates for customer retention

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Leverage user-generated content (UGC)

User-generated content is a great way to leverage customer loyalty.

Ask them to share stories, photos and videos related to your company on social networks. This way, they can take part in your communication and help build brand awareness.

This can help increase sales and create a strong sense of community among your consumers!

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Create a loyalty program

The more loyal your customers are, the more likely they are to return and recommend you to their friends and family.

Creating a loyalty program is a great way to achieve this. You can set up a program in which customers earn points for every purchase and get rewards for recommending your company to their friends and family.

When creating a loyalty program, be sure to build something that consumers will enjoy participating in.

It's also important to think about how you'll run the program and how you'll develop it. Consider launching a pilot program or trial version before rolling it out to the entire customer base. This will allow you to make any necessary adjustments and get a feel for how they interact with the program.

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How can you measure the impact of loyalty on your business?

To assess the effectiveness of your loyalty efforts, it's essential to track key indicators.

Customer Lifetime Value (LTV) enables you to measure the value a customer brings over the entire duration of their relationship with your brand.

To find out more, compare your customer acquisition cost (CAC) with LTV: a good LTV/CAC ratio indicates that your loyalty efforts are generating sustainable profitability.

By monitoring these metrics, you can adjust your strategies to maximize satisfaction and profitability.

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