Customer Loyalty in Retail

  • 02/09/2016

Let's have a look at some simple facts about Customer Loyalty in retail:

Fact #1: All Customers expect to receive value from the products they buy every day 

Fact #2: Nurturing existing customers costs less than a brand-new customer acquisition

Fact #3: Loyal customers spend more money and more frequently.

Quite indisputably, Customer Loyalty is one the few foundations of a successful retail business; understanding why loyal customers, especially in SMB retail industry, are important, can help business owners get an edge that will help them increase sales and stay ahead of competition.

And it is also common ground that the most straightforward, possibly also cost-effective, way to build customer loyalty is through customer’s satisfaction.

Or at least, this is how it used to be.

Because today, as we speak, customers not only want their expectations met or satisfied, but exceeded (if not also anticipated; will be talking about it in another post quite soon)

Customers are certain to buy more, if given the chance to save money (discounts), or receive rewards (gifts) and building a Light Loyalty Scheme is the way to increase your products’ sales day-by-day.

But the really turning factor is to exceed their expectations, building a very close relationship with your customers and making them feel that you are really taking care for their needs. 

And this is what a Light Loyal Scheme can do, listening to their needs and doing your upmost to meet them (or anticipate them; we said, will be talking about it in another post quite soon, ok?)

Building-up a Light Loyalty Scheme as critical as it is surprisingly straightforward and easy to launch and here is a daily example that could help you get the big picture; just think of yourself as the owner of a local coffee shop, giving your customers a Loyalty Card and crediting gain points with their everyday purchase, turning their Sunday’s coffee into a freebie every single week or this fantastic travel mug you are selling into a nice present in a few months’ time.

A free Sunday’s coffee or travel mug is an incentive, and incentives are keeping customers focused, happy and loyal and that’s about it, actually.

A happy customer with an incentive is not only a returning customer, but an ambassador of your coffee shop that will be happy to communicate your loyalty program to existing or potential customers without any cost. So, with zero marketing costs, you just won the coffee lovers of your neighborhood! Oh…and you will start seeing this travel mugs around the neighborhood quite often as days go by, not too bad, right?