> Merely satisfying customers will not be enough to earn their loyalty. Instead, they must experience exceptional service worthy of their repeat business and referrals. Understand the factors that drive this customer revolution. – Rick Tate
Why does it cost around 25 times more to attract new customers than retaining existing purchasers? Because proving your product or service before a physical experience requires a leap of faith from the potential customer. The cost is in reassurance. Given the profit why do less than a third of companies devalue or ignore customer loyalty as a priority? Where are companies going wrong?
Many businesses feel the pressure of retaining customer loyalty and assume delivering the highest quality product is the key. But why are some companies better at keeping customers than others. Is it just about the product? Or is It something to do with the customer relationship?
What motivates loyalty and how can businesses start down the path of creating lasting relationships over simply selling something today?
> Get closer than ever to your customers. So close that you tell them what they need well before they realize it themselves. – Steve Jobs
With 90% of companies currently employing some form of loyalty strategy standing out has never been more important. However, customers want more than just a loyalty card and discounts, they want to ‘[feel well treated](https://adage.com/article/agency-viewpoint/problem-loyalty-programs/306502)’ and have specific expectations around trust, in fact 56% of customers stay loyal to brands that ‘get them’.
‘Customer knowledge’ has moved beyond simple demographic detail and now includes the methods, strategies, and preoccupations through which the customer understands when and where they expect your brand to meet their needs. Your product must appear to be relevant, reasonable and meaningful at all times. We all now recognise that these customers expectations of trust and loyalty are central to customer experience.
Customer loyalty is all about customer experience, customers want to feel connected to a brand. 80% of customers want brands to get to know them better. First buyer decisions are snap and act on impulse and emotion, it is the second purchase that is more logical and requires the customer to put in more time and thoughts. ‘Customers who are connected to the brand on an emotional level tend to spend twice as much as customers who are just satisfied. Customers tend to buy and stay loyal to brands who make them feel like the best versions of themselves. It is this repeat purchase and emotional connection which differentiates brands and loyal customers.
### The solution.
The hallmarks of a strong customer loyalty strategy is based on extending the concept of reward beyond the product. In the contemporary market all products are services. People expect to be engaged with relevant content, at the right time, the right feeling through the right channels.
Businesses need to understand that loyalty can also be an emotional relationship, and a way for brands to show customers they value their business. Customers are loyal to companies who show they understand. Strong durable relationships are built through, empathy, intuition, emotional beliefs, and shared values.
As you can tell there are many wholistic strategies businesses must consider to keep their customers. After all, there are plenty of alternatives out there clamouring for your customers’ attention!
Pomegranate’s experts are hosting a webinar to talk more in-depth about the variety of techniques that can be used to develop an evolving and impactful customer loyalty strategy. [Register Now](https://www.pomegranate.co.uk/news/webinar/customer-retention-webinar) to learn more.