How Customer Service Impacts Customer Loyalty (+3 Loyalty Tips)
Written by Alexa Drake 26 February 2020
There are few things that delight people more than excellent customer service.
If you’re brainstorming ways to keep your customers coming back, assessing your customer service efforts is the best place to start. Impressive customer service won’t only create a strong relationship between you and your customers, it will nurture the one thing you that keeps them aligned with your brand: customer loyalty.
What is customer loyalty?
Customer loyalty is a measure of how likely your customers are to buy from your brand again and again. This loyalty stems from a constant positive experience with your company, high customer satisfaction, and the value your product or service provides them.
There are many reasons why customer loyalty should be at the forefront of any business owner’s mind. In this article, we’ll discuss why customer loyalty is a key component to any company’s success as well as a few tips on how you can keep your customers devoted to you.
The importance of customer loyalty
Customer loyalty touches many different parts of your business (and has a huge effect on just about every metric you track). If your customers are consistently unhappy and don’t come back for repeat business, your company will not survive. Often times, acquiring new customers tends to cost more than maintaining a healthy relationship with existing ones.
This is the main reason why creating that bond between brand and customer is so essential in the modern age. People can change their mind about a company in an instant. If they experience unhelpful and slow customer service, they may think twice about buying from that company again. Much of a company’s success does not come from quick profit grabs, rather, a majority of successful companies consider the long-term customer to be a top priority.
Customer loyalty helps with
When you strip customer loyalty down, it’s main purpose is to keep the customers that repeatedly purchase your products (and in-turn increase revenue) happy. Once a regular customer becomes a loyal customer, they will be more likely to spend money with brands that they resonate with.
Devoted customers are also more likely to spread the word about your company on their own. They love the brand so much that they tell their friends and family about it, post about it on social media, and maybe even buy that brand’s products to give as gifts. This is why acquiring (and maintaining) loyal customers is one of the best things that can happen to your company. They help to drive free referrals and will make your brand a part of their identity, further spreading your company’s reach.
The cornerstone of a happy customer is excellent customer service.
Customer service’s effect on
It’s a no-brainer that your customer service team plays a big part in developing customer loyalty. People love doing business with companies that care about their customers rather than treating them as a means to an end. Although the customer does impact company revenue, you can find ways to show them you care about them on a more human level. Your customer service team plays a huge role in preventing customer disloyalty.
Although customer satisfaction doesn’t necessarily result in loyal customers, customer dissatisfaction will almost always end in disloyalty.
3 tips to keep
Now that we’ve discussed why great customer service can lead to customer loyalty, it’s time to talk about actionable ways you can delight your customers.
1. Take time to get to know your customers
It feels great to be remembered. Companies should prioritize getting to know their customers on a deeper level than just ‘another customer’. This may seem easy enough, but it’s pretty hard to execute genuinely.
When a customer feels valued, their experience with your brand skyrockets. Take birthday emails for example.
Many companies utilize email marketing software on a daily basis to connect with customers authentically. It feels nice when a friend or coworker remembers your birthday so why should it stop there? Companies can use personalized emails to make customers feel valued. And when they feel valued their loyalty increases.
Wouldn’t it be great if your favorite company remembered the last purchase you made with them and gave you a discount on that product? Or maybe even suggested a slew of complementary products? Maybe they’re releasing a new product and email you with an early access coupon code. Little things like this are what wow the customer.
With email and marketing automation software, you can strengthen the relationship between you and your customers tenfold. This software helps marketers send personalized messages to large groups of people at the same time. It’s a great way to show the people driving your revenue that you care about them.
2. Use tools to assist your customers
Say your customer is having issues with the cable package they bought from you. Say they’re sitting on their couch at midnight and can’t figure out how to set it up. It can be frustrating to wait until a company’s working hours to address the issue. This is yet another area where you can use customer service to increase customer loyalty.
Enter live chat software. Live chat allows companies to communicate with their website visitors in real-time via chat windows. Customer service representatives can utilize live chat software to provide support to users who have questions regarding products or website navigation.
On the G2 Track site, there’s a bot set up ready to answer any questions a customer may have.
By providing this extra assistance to your customers, you boost overall satisfaction. They know they can find help on your website if needed. It’s just one more thing you can use in your customer service efforts to strengthen that loyalty.
3. Seek customer feedback
Actively seeking customer feedback pairs perfectly with customer loyalty. Positive reviews of your company will lead potential customers to your business, great customer service will turn them into customers, and happy customers will leave shining reviews. It’s a beautiful circle. Of course, when you’re seeking feedback from your customers, you want to make sure you’re taking the time to improve your customer service efforts as well. If there’s no effort to provide a pleasant customer experience, the good reviews will not come.
There are plenty of ways to discover what your customers are really thinking. To start, you can include a quick survey at the end of an email or even send a post purchase email. Social media is full of thoughts from active consumers. A quick scroll through Twitter can give you insight into how you can improve your company.
It’s a give and take
Gaining customer loyalty isn’t always as easy as many people make it out to be. It takes time and effort to focus your customer service team on the appropriate ways to care for your customers.
If you focus on attracting new customers with a tempting price, you’re headed straight for a dead end. Companies with low customer loyalty attract customers this way and eventually have to offer deep discounts on their products to make ends meet. Companies with loyal customers don’t need to worry about this.
By focusing on treating your customers with respect and care and always exceeding expectations, you’ll gain a priceless relationship and a steady revenue stream.