Customer Loyalty – Easily Beat the Competition in your Business

Achieving Customer Loyalty today is like a card up your sleeve for any company to get ahead of the competition.

The market is increasingly competitive and, therefore, it is necessary that you carry out a set of actions that will aim to achieve the loyalty of your customers.

That way, your customers will buy more, more often, and are even more likely to resist competing offers.

See an illustration of how the need for loyalty is present in our day-to-day.

Customer Loyalty

Loyalty is making your product, service and customer service so special that when your customer needs them again, they won’t think twice about closing a deal with you.

Loyal customers buy your products or services without thinking so much about the price as they take into account the quality already known, the memory of a previous shopping experience that exceeded their expectations and a great after-sale.

Shall we take the test?

Think of yourself! Do you prefer to buy a product that you have known and used for a long time, has a satisfactory quality and meets your expectations, or do you always go in search of new products or services to meet that same need?

When you choose to always do new tests, you run the risk that, in the end, you spent more money and did not find a service as satisfactory as you imagined, right?

Thus, it is possible to realize how important it is to think about customer loyalty and retention strategies to ensure the survival of your company within this highly competitive market in which we operate.

Through customer loyalty, you create affinity and build a healthy and lasting relationship with consumers who already know your brand.

This process becomes easier and more profitable than acquiring new customers simply because you have already passed the barrier of acquiring customer trust.

” It is five times cheaper to keep the customers we  already have than to go looking for new ones “

Working of Customer Loyalty

The main objective of customer loyalty is the continuous increase in sales and this will only be achieved if you are able to retain the customers you have already conquered and acquired new ones frequently without high costs.

We can clearly see this situation happening when we observe the relationship in which customers have with some more famous brands. For example, Apple, which is one of the biggest references when it comes to customer loyalty.

Do you know any customers dissatisfied with Apple? Difficult right?

Typically, a person who uses Apple products fully defends the brand and always finds some argument to justify the high price of their products.

These customers are loyal to her and, after the first contact, they hardly change brands in the next purchase.

It’s even better!

They publicize the brand to friends and acquaintances, doing that famous word of mouth marketing that is the dream of every entrepreneur to achieve, as it is cheaper and more effective.

This is how loyalty works, whether in a large company like Apple or in a corner store if you exceed your customers’ expectations they will create a very strong relationship with your brand and will start to think more about quality and value you deliver than at the price you pay.

When you are able to add value to your products or services, your business naturally acquires an authority, and when you deliver quality, it generates customer satisfaction.  Consequently, you reach the loyalty and retention of its customers.

Usefulness of Customer Loyalty

Negotiating Power with Suppliers

When you acquire loyal customers and your supplier recognizes this, he will do anything to close a deal with you. Because there will be a greater chance of his product being sold and consequently you will buy larger quantities from him.

Therefore, you can count on benefits such as better prices, terms and payment methods.

Referral of New Customers

As soon as you build customer loyalty, the next step is the referral. When your customer is satisfied, they tend to share their experiences with friends and family who are sure to buy from you too. This increases your customer base and virtually at zero cost.

Think about you!

When you need to buy something that is not in your routine, you always ask for a suggestion from someone you know, don’t you?

If someone had a good experience buying this product, they will certainly tell you and most likely you will close a deal with that company.

This is the famous word-of-mouth marketing behind MyCCPay official site, which allows us to achieve goals and provides continuous growth through organic results, that is, without the need for greater investments for this to happen.

Reduced Marketing Costs

When you define marketing strategies in order to attract customers, you immediately think of paid media such as radio, newspapers, pamphlets, etc., right?

Have you ever stopped to think about the cost of acquiring customers that reaches your company through these means? It’s quite a high cost, isn’t it?

Imagine then that you made a marketing investment of 10,000 reais in a radio advertisement for example.

In this campaign, suppose that you were able to acquire 200 customers and consequently your acquisition cost was 50 reais per customer.

If your contact with that customer ends with that first purchase, for the investment to be worthwhile, your customer would have to make a purchase above 50 reais, which can be a problem if your average ticket is very low.

With that same investment in mind, if you keep in touch with the customer, he will return more often and still be able to refer new customers without having to spend more to do so.

Imagine that each customer you acquired through advertising is very satisfied with your company and brings you 2 more customers per referral. In that case, your purchase cost would already drop to approximately 17 reais per customer.

Besides, when the customer is satisfied and is reminded of his company, he always comes back for a new purchase. In this way, you further enhance the gains over the initial investment.

Above Market Prices

Remember when we talked about Apple products? What customers are not bothered by the amount they will pay because they trust the brand?

So, when there is loyalty, price should not be the main competitive factor of the product. And people, even if unconsciously, tend to overvalue the brand, placing it above any other competitor.

In this case, the company may charge prices above the market as this will not interfere with its sales. And so, the profit margin will be greater than that of competitors.

Do You Expect From a Loyalty Program?

We have already talked about some advantages that customer loyalty can provide for your business. But now, to organize the ideas, we will then point out all the positive results that you can reap when investing in loyalty.

Reduced Customer Acquisition Costs

With customer loyalty, it is no longer necessary to invest so much in advertising through traditional means of communication such as radio, TV and banners. When organic reach is achieved, attracting customers becomes much cheaper and more efficient.

Increased Profit Margin

As a result of cost savings, your business becomes more profitable and your profit margin increases significantly. With customer loyalty, your company acquires a constant source of income for many years, however, remember that this loyalty will only be maintained if the expectations of customers continue to be met over time.

Retention

Through good communication, relationships and offering advantages to retain customers, you earn their trust and make them return more often to buy. And this occurs naturally, without that annoying situation of having to arrest a customer for a contract, for example.

Average ticket increase

As the loyal customer becomes less sensitive to price, you are able to increase the value spent per customer as a result of the possibility of increasing the price of your products.

Consequently, it also increases your company’s revenue!

You will be able to get prices which creates a headache for so many entrepreneurs.

Good Reputation on Social Media

I have already shown you how much more profitable word of mouth advertising is for your business and, one of the ways in which this occurs is through social media.

Nowadays, comments made in online environments are sometimes decisive factors when the customer is choosing where to buy.

With customer loyalty, consumers of your brand will be closer and more likely to make good comments about your business on platforms such as Google, Facebook, Instagram, TripAdvisor, etc.

Increased Frequency of Purchases

As soon as you notice all the previous results happening, it’s time to re-evaluate your customers’ purchase frequency. They are certainly buying more often and in shorter time intervals.

When you implement a firm and regular customer relationship policy, your customer will always remember your brand and be on top of all your offers, increasing the chances of them buying more often.

Types of Loyalty Programs

Cashback

As the name implies, cashback is nothing more than cashback. When the consumer buys at an establishment that has the cashback, part of the money spent on the purchase returns to that customer.

Some programs allow the person to receive this money in his bank account, in others, the customer can only use this credit in the store where he bought it.

The higher the cashback, the more customers are attracted to the offer, but in this case, the company decreases its earnings. And the problem with this type of loyalty program is that the consumer is not very attached to the company, but to the value of the cashback.

Miles

It consists of a points program usually offered by airlines and credit cards. When registering for these programs, the customer accumulates points every time he uses the company’s services and these points are converted into prizes, new tickets, extra bonuses or prizes made available by the companies themselves.

Magnetic loyalty card

In this type of loyalty program, all customers receive a magnetic card in which the points referring to each purchase made by them will be registered. These points accumulate and can be exchanged for products.

The negative point here is that it depends on the customer always remembering to carry the card with them so as not to miss an opportunity to score and also has the possibility of losing it.

Stamp Card

Probably the best-known form of a loyalty program is the card with a stamp. It is an older and outdated form, but still widely used mainly in small companies.

This system is simple, every time the customer makes a purchase, his card is stamped and when he reaches a certain number of stamps, he can exchange the card for a product or service predetermined by the company.

Just like the magnetic card, the negative point is the possible loss of the card as the customer loses all his purchase history and needs to start filling MyCCPay official Site card details.

Loyalty software

The most modern and practical solution today is customer loyalty software. It is usually the solution that brings the best results because it has the possibility of creating a database that you can use for customer relationship strategies.

In practice, the customer performs his registration and informs his CPF when making the payment. This way, all purchases will be linked to your CPF and the system will count the score equivalent to the amount paid.

As this system requires a registration, you will have some valuable customer data, so you can maintain a relationship that will allow customer loyalty in the way we talked so far, with the entire relationship marketing strategy.