The Customer Satisfaction and Customer Loyalty Correlation
Maintaining customer loyalty is one of the most important, yet most difficult, aspects of any business. But before you can maintain customer loyalty, you first have to understand how to create customer loyalty.
Take a look at our Customer Loyalty Infographic to get up to speed on how important loyalty is. Look closely at the statistics and you will realize that you can earn a lot of money by making customers loyal to your business. The numbers are staggering: a 5% increase in customer retention can increase profits by 125%.
So, where do you start when it comes to building a loyal customer base? A satisfied customer is easier to turn into a loyal one. There’s an old adage that says it’s cheaper to keep your current customers than gain new ones. That still rings true, maybe louder than ever today. Nearly every market is filled with competitive options where customers can spend their budgets. It’s essential that, once they’re in your door, you give them a reason to come back.
Remember your last bad shopping experience? Did you ever go back to that store? Same here. Do you know if that’s happening to your customers? Rolling out a customer satisfaction survey is the best way to get objective information about what your customers really think. Your customers may shed light on some hard truths about your business, but if you take the survey results to heart and make changes, you’ll be on your way to creating more loyal customers. Americans are 81% more likely to return to a store that provides great customer service.
Are your employees who interact with customers doing all they can to show that they care? Evaluate your employee engagement levels. Disengaged employees could be costing you customers. Think about a company like Zappos. They dedicate a month of training in customer service alone for new hires. What measures are you taking to perfect your customer service?
Follow up with customers after they make a purchase. Despite what you may think, most customers who are unhappy with your product or service won’t contact you to voice their displeasure. You can lose a customer, who may tell others about their bad experience, and you’ll never know it. Give your customers an easy way to express their concerns (or, hopefully, happiness) with their experience. Some companies, including Zappos, use their social media programs expressly for customer service issues. It’s a medium that customers already use, so it’s simple for them to shoot you a message. Just be sure you respond in a timely manner.
Customer loyalty cannot be manufactured, it must happen naturally. But, you can help foster it by following good business practices. If you continually give your customers reasons to return to your business, then they likely will. If you’re ready to start turning customers into loyal customers, contact NBRI. Simply fill out our contact form or give us a call at 800-756-6168.