Customer Loyalty: The Longevity of your Business

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“Scientia est potential” is a profound phrase attributed to Sir Francis Bacon, an English philosopher, scientists, and author. It means – knowledge is power.

In this age of the internet, this statement is truer now than it was at the time of its writing. Many businesses now know that information is key to their survival and success and they are going to great lengths to get some.

Accurate and reliable data can improve customer satisfaction by a lot and can also reinforce the loyalty of your customer to you.

Tools such as Wi-Fi analytics can help you gather, analyze, and make sense of data from your customers.

Examples of data you can obtain from your customers include first-timers rate, churn rate, repeat rate, etc. Go here to find out 3 things Wi-Fi analytics can tell you about your customers.

For your business to grow you need new customers; for your business to thrive you need loyal customers. And repeat rate is a metric that shows you how many loyal customers you have.

But first…

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What is Customer Loyalty?

You see customer loyalty when a customer consistently chooses your products or services over your competitors. Your loyal customers will not be moved by your competitor’s price or availability. A loyal customer will stick with your brand even if you increase your prices.

So then…

How Can You Foster Customer Loyalty?

This simple. To foster customer loyalty, you must provide quality products/services on a consistent basis. You must strive to always exceed your customers expectations.

Doing this will make your customers trust your brand more. Ultimately, this will lead to repeat business and increase in sales, and hopefully, profit.

Why is Customer loyalty Important to Business?

While new customers may bring in more profit, loyal customers sustain a business. Without loyal customers your business will go bankrupt. Loyal customers bring in over 80% of the profits that come into your business.

Plus, it is more expensive to acquire new customers than it is to retain loyal ones. As they say, ‘A bird in hand is worth two in the bushes’, it’s more profitable and cheaper to keep regular customers returning than going after new customers.

This makes customer retention a smarter business decision.

Customer return rate: the oracle of customer loyalty

Many business owners and marketers think that it is difficult to acquire vital customer data they need to take their business to the next level. They think they’d have to spend millions of dollars to get such valuable information. Some even believe that acquiring and using such data is unethical and violates the privacy of the customers.

But nothing could be further from the truth on all three counts.

Firstly, acquiring and using information for the right reason – to provide better products and services for your customers – isn’t unethical.

Secondly, you do not need to spend a fortune to acquire and manage valuable customer data.

Thirdly, customer data isn’t elusive or difficult to come by if you employ the proper tools. And one of the reasons why it is very important to collect reliable customer data is because data has a voice and it speaks.

Without accurate data, you might only discover a huge problem when it’s too late.

Countless businesses have closed shop because they failed to see an underlying problems early enough. But with the right data, you can. You can closely monitor metrics like first-timer rate, churn rate, and return rate (which is a measure of customer loyalty) in real time.

When you carefully monitor these metrics, you’d easily notice when your customers’ return rate is dwindling and take proper action.

Returning customers sustain a business and if yours aren’t returning, it could spell trouble for your business. Customer loyalty can be influenced and controlled using the right strategy and tools. Here are 3 ways to get your customers to buy again.

Read between the data lines

Yes, customer loyalty can be boosted, deliberately.

Once in a while you might need to spice things up a little bit. Upgrade your products/services or offer something completely new.

You could offer a significant discount for customers who spend above a certain amount of dollars or perhaps free shipping for purchases of a specified number of items.

Some or all of these should be done with the goal of increasing frequency of visits of old timers, hence, improving customer loyalty.

Using Wi-Fi analytics, you can observe and measure the response of your customers to your upgrades, special offers, and other tweaks. The data collected in that period speaks volumes and can show you if your efforts are working or not.

Promotion ideas like the one above works in almost every situation. Sometimes customers get tired of the old stuff and want something new. You should do your best to make doing business with you an exciting experience for your customers.

This way, you can improve your customer loyalty any time you need to.

If your new offers aren’t working as they should, ask your customers to know what’s wrong. You could offer incentives to your customers to tell you what they want but aren’t getting. Information like that can help you review your offers and make the necessary changes.

Finally…

With accurate customer data and intelligent Wi-Fi marketing and analytics tools, you can gain insight into the minds of your customers.

You can create marketing campaigns specifically targeting regular, and even ‘at risk’ customers in order to cement their loyalty to your brand.

SpotOn’s Wi-Fi solution collects adequate data that will help you make sense of your customer loyalty. Do you want to see how our platform does it? Great! Then head over to our request a demo page to get a free demo.

And if you find anything there you don’t understand, please contact us, we’d be more than happy to help.

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