7 Reasons Why Customer Loyalty is More Important Than Ever

Patrick Antinozzi

customer retention strategies

We hear a lot about finding ways to attract new customers, but what about keeping the ones you have?

Businesses are starting to realize that retaining customers should be much higher on their list of priorities, and for good reason.

Well, more specifically, seven of them:

7 Reasons Customer Loyalty is More Important Than Ever

1. Customers expect more

Put simply, customers are more educated and have more options to choose who they give their money to. In order to keep them coming back to you, you need to make sure their experience is one they can brag about to their friends.

2. Competition is fierce

And not the fun kind of fierce. Increased options for customers means a steep rise in competition for their business. Your competitors are using new, advanced and data-focused tools to gain that extra edge. Smaller "mom and pop" retailers are now more readily able to compete with the larger enterprises.

3. A good product is not enough anymore

Today's customer values the purchasing experience more than the product they buy. You could have the best products in your industry, but if the buying journey is not something that leaves a lasting memory with your customers, you will quickly be forgotten.

4. Every customer is a critic

Social media has turned every customer into a potential reviewer of your products and service. This is a double-edged sword. Leave a good impression, and that positive experience can be shared to your customer's entire network. Leave a bad taste in their mouth, and the potential for that negative experience to spread like a wildfire multiplies greatly.

5. Consumer budgets are tight

It's no secret that many economies around the world are in deep recessions. And with recent catastrophic financial collapses still on the minds of many, people are clasping their wallets just a little bit tighter. When you finally manage to make a sale with a new customer, you're going to want to make sure they keep coming back.

6. Traditional loyalty programs just don't cut it anymore

Nobody wants to walk around with a wallet full of loyalty and rewards cards. While traditional loyalty programs may have been effective as little as 10 years ago, today's consumer demands something special. Mobile ordering apps, personalization, recognition, these are the things millennials look for in their buying experiences.

7. It costs less

Acquiring new customers costs 6-7 times more than retaining the ones you have. Ignoring the customers you have while searching so desperately for new ones is simply a terrible financial decision.

What can I do about it?

customer retention using data

Winning over customers to your side is only half the battle.

Once you've got them on the hook, you need to figure out how you can keep them coming back to you. And that's the really tricky part.

The wireless industry, in particular, is incredibly volatile these days. Wireless carriers are spending insane amounts of money to convince subscribers to switch to their networks, while consumers are bombarded by more choices than they can handle.

Fortunately, you have new tools at your disposal to help you stand out from the pack.

We are in the midst of a new information age. Incredible amounts of customer data that was previously unavailable to us can now be unlocked. You just need the right tools to do it.

That data is the key to better understanding your customers, meeting their unique needs, and building long-lasting relationships with them.

Because, in the end, what will set you apart from your competitors is...

you.

(images via Blackberry UK, Zafin)

About the Author

Patrick Antinozzi

Patrick is our Content Specialist / Brand Ambassador / Internet Geek. He's got his finger on the pulse of business and retail trends, and loves writing in various corners of the internet. When he's not doing that, you'll find him traveling the world, playing hockey, or ranting about the Montreal Canadiens.

Follow on Twitter Follow on Linkedin
Previous Article
Why Retail "Beacons" Are Doomed to Fail
Why Retail "Beacons" Are Doomed to Fail

There's been a lot of chatter surrounding retail beacons, with many labeling them as the saviour of retail....

Next Article
Omnichannel Retail Strategies: Everything You Need to Know
Omnichannel Retail Strategies: Everything You Need to Know

Learn what omnichannel means, why it matters, and how you can implement your own omnichannel strategy in yo...