10 starting points for efficient economic customer loyalty
Economic customer loyalty refers fundamentally to the strategies and measures that companies take to bind customers to their products or services in the long term. The aim here is not only to win customers over for a single purchase, but to get them to buy from the company regularly and, in the best case, to become loyal regular customers.
In our blog post on the top 5 types of customer loyalty, we have already noted that (notional) switching costs play an important role in economic customer loyalty, which do not necessarily have to be financial in nature. These can also represent personal (labor) costs that can arise when switching to a competing company or provider.
A typical example of this is the use of several electronic devices that together offer added value. Switching to a different provider can result in monetary costs for the purchase of the new devices on the one hand, and costs due to the work involved, which in turn entails expensive working hours, on the other.
Starting points for efficient economic customer loyalty
Strong customer loyalty can have a positive long-term impact on a company's sales and profitability. Here are some aspects and strategies to consider in connection with economic customer loyalty.
1. Quality products and services
Customer loyalty starts with high-quality products and services. If your customers are satisfied with the value of the products or services you sell, they are more likely to come back and buy from you again.
2. High quality customer service
Excellent customer service is crucial for satisfied customers. Quick responses to inquiries, problem resolution and friendly interactions contribute to a positive customer experience. In particular, customer experiences where negative experiences ultimately have a positive outcome - e.g. through a free repair, etc. - will be remembered by your customers!
3. Loyalty programs
Companies can introduce loyalty programs or customer retention programs where customers receive rewards, discounts or exclusive offers when they make repeat purchases.
4. Efficient personalization
An individual approach and tailored offers show customers that they are valued. This can be achieved, for example, through personalized emails, product suggestions or recommendations. The basis for this is clean customer data. This also makes cross-sells and up-sells easier, as recommended and offered products are more likely to match the interests of your customers.
5. Regular customer communication
Regular communication, whether via newsletters, social media or other channels, keeps your customers up to date with news, offers and events and conveys a sense of appreciation.
6. High quality shopping experience
Create a positive shopping experience, whether in the physical store or online. A pleasant experience increases the likelihood that your customers will come back and buy again - the subconscious also plays a major role here.
7. Use customer feedback
Customer feedback is valuable. Companies can learn from it and improve their offerings, which in turn increases customer satisfaction. Direct feedback from customers in real time via a loyalty app can be very helpful here.
8. Community building
Creating a community around your brand or products can create an emotional bond between customers and your company. This can take the form of online forums, social media or events, for example.
9. Emphasize value and USP
Always emphasize the value that your products or services offer and show how they can solve your customers' needs and problems. The USP (Unique Selling Proposition) is the unique added value of your products or services for your customers.
10. Long-term relationships
The goal of efficient (economic) customer retention should be to build long-term relationships with customers instead of just aiming for short-term sales.
Economic customer loyalty is not necessarily financially motivated
Economic customer loyalty aims to establish customer loyalty as a long-term strategy that pays off for both the company and its customers. Loyalty and customer satisfaction are at the heart of these efforts. Short-term increases in turnover are not a central aspect.
It is important to note that it is not possible to make a clear, sharp distinction from other types of customer loyalty - such as emotional or situational customer loyalty - due to the numerous overlaps. But look on the bright side: if you focus on the points listed above, you will not only improve your economic customer loyalty, but your customer loyalty in general!
