7 Core Practices to Increase Customer Loyalty

improve customer loyalty

The importance of customer loyalty

Customer loyalty is the foundation of all successful businesses no matter what industry they’re in. The reason is simple: the more loyal customers you have, the more likely they are to be repeat customers (or in digital terms: return visitors). Repeat customers provide a steady stream of income and keep you in business for the long haul.


Customer loyalty is important because it allows businesses to reduce their marketing costs while increasing overall revenue. This is due to increased purchases from repeat customers which decreases the need for companies to invest heavily in marketing campaigns to acquire new customers. 

Loyalty programs also help build a competitive advantage by allowing companies to differentiate themselves from competitors by offering incentives and rewards tailored to their existing base of loyal customers.

7 core practices to increase customer loyalty

Customer loyalty is not a one-time event, but a process—and one that requires constant investment to thrive. It’s not enough to know what makes customers loyal. You must also understand how they become more loyal over time and the qualities of your brand that drive customer satisfaction. 

To stay top of mind for your customers, make sure to integrate the following practices into your small business customer service operations. 

1. Make customer service a priority.

Customer expectations are growing. They want great service from every employee. And, in the future, they will expect businesses to be responsive in a way that goes beyond just being available. They will expect businesses to give them something before they even ask for it.

The best service providers are fanatically focused on the customer. They know that spending time and money training their staff to be friendly often pays off in higher customer satisfaction and lower customer turnover.

Apple provides amazing customer service.

The most important thing you can do to increase customer loyalty is to create an environment of trust and respect that makes customers feel safe and valued. Integrate a customer-centric approach into the CRM front and company culture. 

If your customer base feels safe and valued, they’ll come back again and again—and they’ll tell their friends, spreading word-of-mouth and growing your customer acquisition over time as well.

2. Listen to customer feedback.

One of the best ways to boost loyalty is to get inside the minds of your customers through customer feedback. Customer feedback gives you an unfiltered look at the customer experience, and it’s necessary for building strong customer relationships. 

To build a great product or service, you have to be able to listen to feedback then develop actionable steps to integrate it into your service . It’s all about listening to the customer and then taking action on what he or she says.

Tesla proves the benefits of listening to customers.

If customers aren’t satisfied, they are likely to seek out businesses that better meet their needs. As a result, companies need to make sure they’re listening to their customers’ feedback, and then acting on it in a way that will please them.

Remember: happy customers = reduced customer churn = more sales.

3. Focus on customer retention.

Customer retention is a marketing concept that’s gained popularity in recent years. The idea is that customers who are retained are more likely to buy from you again in the future, and they will recommend your brand to others. Customer retention can therefore be a great way to improve customer loyalty.

The importance of solid customer relations cannot be understated, especially in the current economy where businesses face an increasing number of challenges. To ensure your company’s long-term bottom line grows, you need an effective strategy to balance your company’s short-term needs. That means having a loyal customer base by focusing on your customer retention rate. 

One way to do this is to proactively reach out to existing customers who have not made purchases or who have canceled services in the past six months. Call them, email them, or send a letter. Ask why they didn’t make purchases or why they canceled services and then address their concerns. These customers will show an increased interest in future product offerings and could be the key to increasing sales during future economic downturns.

All the while, continue building customer loyalty with customers that favor you. Keep them in the loop about new products, refine your marketing strategy to entice more satisfied customers, and encourage repeat business. 

A well-established relationship with customers could go a long way towards ensuring increased sales during difficult economic times. As competition increases, it’s more important than ever for companies to develop strategies that focus on customer retention.

4. Publicize good reviews and testimonials.

One way companies can share information with their customers is by posting reviews on social media platforms such as Facebook and Twitter. Social media platforms allow businesses to share positive reviews as well as negative ones, giving potential customers a more complete picture of the business and its products or services.

Make sure to use these platforms yourself and ask them to share their experience by creating a good post. The more positive posts you receive, the higher your chances of increasing customer loyalty.

UK grocery chain Sainsbury’s was in the spotlight for writing back to a 3 year-old in good faith and providing a gift card.

Monitor what people are saying about your brand on social media platforms and keep track of the latest trends in your industry. You can even reach out to customers who have posted positive reviews about you by thanking them and asking them how you can improve your services in the future. 

5. Incorporate a customer loyalty program to reward loyal customers.

Customer loyalty programs allow retailers to keep a relationship with their customers even after they make a purchase. Simply put, satisfied customers are more likely to return for another purchase.

There are many different types of loyalty programs that cater to different types of customers. Some programs offer rewards, while others offer discounts or other incentives. Some loyalty programs are based on a points system, while others are based on discounts.

Starbucks has one of the most popular loyalty programs.

As technology continues to evolve, customer loyalty programs will adapt to help strengthen the relationship between the customer and retailer. The most important function of a loyalty program is to reward the customers who frequent the business the most. 

Businesses need to make sure the rewards they give out are relevant to their customers to keep them coming back for more. If a customer doesn’t feel like he or she is getting something for their money, then they’ll be less likely to return in the future.

6. Incentivize referrals.

Companies like Amazon and Netflix have revolutionized the way we shop. One of the ways they’ve done this is by offering convenience. They know that it’s vital to provide customers with easy-to-use features, such as a single sign-on and one-click checkouts.

However, one of the most important ways these companies have changed the game is by incentivizing referrals. When you put your customers to work as evangelists for your product or service, you’re not only getting free marketing, but you’re making them feel valued. Surprising and delighting customers is another way of showing how much they mean to you — and how much their input matters.

Here are ways you can reward customers through referrals:

  • Give them a discount on their next purchase or service.
  • Send them a handwritten thank you note. Better yet, give them a call!
  • Offer access to exclusive content or products (e.g., beta testing).
  • Invite them to an event or meeting focused on your product or service (where they can interact with your team). 
  • Give them a shoutout on social media or in an email newsletter.

7. Increase responsiveness to better the customer experience.

Companies are increasingly realizing that customer loyalty begins with customer experience, and successful companies are reevaluating their service from the customer’s perspective to learn how they can improve their responsiveness and increase their overall positive customer experiences.

In 2022, customers will expect immediate responses from businesses on a variety of platforms, including email, social media, and live chat. Poor responsiveness can lead customers to look elsewhere for products that fit their needs. By being active on these platforms, businesses will demonstrate their commitment to providing an excellent customer experience. 

This is especially important when it comes to live chat. Answering questions customers have while they are in the middle of an online purchase or experience is one of the most important features a website or blog can offer. When businesses offer this kind of assistance, they show that they value their customers’ time and provide them with a great experience as they shop.

Increase responsiveness for your loyal customers with ChatSupport’s Live Chat Feature

As a business owner, you might be wondering why you need live chat. The answer is a simple one: to boost your customer support and exceed customer expectations. 

ChatSupport’s live chat feature is an easy way to connect with your customers and offer assistance when they need it. It allows you to provide support to your customers without having to worry about getting back to them at a certain time or making them wait on hold too long.

Get started today to learn how ChatSupport can help you gain more loyal customers.

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