How to Build Your Customer Loyalty (Practical Guide With Examples)11 min read

by Gaurav Chatwani
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Do you want a sales team who will work for free?

You must say: Gaurav, Why are you joking?

Yeah, I am not kidding. Your customers can be your sales-person or promoters of your brand.

Amazing! But how?

Yes, it can be! 

When you build your customer loyalty, customer trust in the brand and healthy relationship with the customer, most of the customers will become promoters of your brand and they will automatically start word of mouth marketing probably, you know that word of mouth is one of the best marketing strategies to build your brand trust, influence and don’t take tension: your customer will build your brand with their natural influencing skills.

What do you need to know? Building customer loyalty!

So, today I will guide you on how to build your customer loyalty for your brand with examples, with case studies, with practical scenarios, negative facts with statistics and much more!

In fact, I also use these strategies for my client’s businesses. 

The most important thing! It really works. My clients found the J curve in their business sales profit when they build their customer Loyalty.

So, are you ready?

Let’s make your customer Loyal.

First things First! What is Customer Loyalty?

According to Wikipedia, Customer loyalty is defined as positive feelings towards a brand and dedication to purchase the same product or service repeatedly now and in the future from the same brand.

Loyalty means a bond between the customer and your brand. Like you have some friends and you have a good bond with them, you feel good when you spend time with them. Just like that!

You should have an idea about the things that customers like and don’t like. If you want to make customer loyalty, you have to think out of the box, make your mindset Emotional, think like a customer.

Do something for your customer that makes them feel WOW!

customer wow feeling
Gif Source: Bobly Giphy

When you use the right emotion to convey your brand message to your customer, your message can be registered in the customer’s mind. It also depends on how you treat your customers, in a way they expect.

I can define it in other words like:

  • It’s an emotion
  • Involvement & Engagement Feelings.
  • It’s a bond between customer and brand
  • Trust
  • Heart Winning Relationship
  • Habit
  • Choice
  • Likeness unlike others
  • Positive Feeling

How Customer Loyalty Can Help Your Business Grow?

  • Customers will start word of mouth marketing automatically when your product-related discussion occurs. Organic Branding by customer natural influencing skills always wins.
  • Customers will start repurchasing your product again and again. Your brand will have existing customers.
  • With the help of their natural influencing skills, your customers will influence their friends and known and grab new customers for you.

Do you know this fact?

Today selling to the new customer costs 7x more

And selling to the loyal existing customer costs 7x less.

retention-vs-acquisition stats

This research is done by big universities.

It’s amazing! Right?

For example,

Today MTR Brand customers are loyal for them

Today Harley Davidson brand customers are loyal for them

Today Apple Customers are loyal for them

I personally prefer Gillette Mach 3 for shaving. I believe in Gillette. I am a loyal customer of Gillette.

Importance of Customer Loyalty (You Should Know About This)

Know why customer loyalty is important for your business to grow!

  • It creates a long term impact on business
  • Increase Customer retention value
  • Commitment and repeat purchase behaviour
  • Competitive advantage
  • New Potential Customers
  • Customer referrals (or word-of-mouth marketing)
  • Cost-efficiency
  • Reviews, testimonials, and other user-generated content

Let’s read some facts to know the importance of customer loyalty.

A recent study shows that customer loyalty is affected by customer satisfaction. 

(Dawes, J., “The Effect of Service Price Increases on Customer Retention: The Moderating Role of Customer Tenure and Relationship Breadth”. Journal of Service Research)

According to Harvard Business Review, 5 Percent improvement customer retention rates will yield a 25 to 100 per cent increase in profits.’

New York time says: The loyalty effect puts the loyalty economy on the map.

New research shows that longer-term customers were indeed less sensitive to price increases.

Today selling to the new customer costs 7x more

And selling to the loyal existing customer costs 7x less.

So, these above facts proved why customer loyalty is important and how it helps to grow business.

Practical Ways To Build Your Customer Loyalty (With Examples)

Involvement Technique (Engagement):

When the customer starts feeling involved in the brand’s products, it is a sign of loyalty. The customer feels pride when they act as a part of the company. 

Involvement in customer loyality

In short:

  • Feeling Involved in the brand
  • Part of the brand
  • The brand has importance for the customer

Examples of Involvement Technique:

Starbucks Example:

Starbucks made a customer winning campaign which helps to make its brand loyalty. They starts involving their customers in their upcoming product ideas.

However, Customer feels special and involved when their idea for Starbuck products is approved by the company.

  • Product idea: Improvement in their upcoming products.
  • Experience Idea: They make the customer experience better in social media and their website.
  • Involvement Idea: Starbucks involved customers to take participate in giving ideas.

So, the involvement and engagement help to make customers aware and knowledgeable of the brand attributes.

Starbucks also created a feeling of “My Starbucks” which plays a main role in creating brand loyalty.

starbucks customer loyality program
Source URL: Starbucks Rewards

When a customer starts involving, they will act as a glue.

Example 2: Sephora Beauty Insider: 

Sephora created a traditional old school points-based reward system where customers earn points for each purchase they make.

sephorra customer loyality program
Screenshot Image Source: Sephora Website

How does involvement idea work in Sephora?

Sephora let members choose how they spend their reward. Dropping new rewards every Tuesday and Thursday, it also creates waiting feeling for the customer.

Emotional Attach Tip

Make your customer feel emotional while they watch your video on the tv ads, youtube video etc. However, it depends on your ad script which can be funny, emotional, positive etc. etc. Your motive in creating video script is to deliver the right message to the right people at the right place.

It also helps to create your brand recall value.

Here is the solution: Brand recall value is somehow connected to your customer brand loyalty. When you play the game with feelings of people, it directly registers in their mind.

For example, using religion, world peace, love, death, children and much more symbols that humans can feel sentimental about will attract consumers to their brand

The most important statistics that you need to know:

Customers with an emotional connection to a brand have a customer lifetime value that’s 4x higher than the average customer.

Examples in Emotional Attach Technique:

Example 1: Google search Reunion Ad

Example 2: Love Has No Labels | Diversity & Inclusion | Ad Council

Example 3: Thank You Mom – P&G Commercial (Sochi 2014 Olympic Winter Games)

Use Customer Relationship Management Tool

Today, data is the king! Do you agree or not?

Maintaining your customer’s data in the software will help you to make your work easy. Sending emails to the customer, offers, discounts, giveaways becomes easy.

Now the point is how can you make your customer loyalty with the help of Customer Relationship management tool.

  • You can Wish your customers on their birthday. You can offer some special discounts on their birthday.
  • Like you chat with your friends personally. Customer relationship tool helps to make customers connect like a friend.
  • Taking care by following up emails and messages
  • Sharing offers through emails
  • Individualized marketing messages to the customers

I personally prefer Hubspot CRM:

Hubspot crm tool for loyality increase
Image Source: Hubspot Website

Do you know In 2008, only 12% of businesses used cloud-based CRM – This figure has now increased to 87%!

crm stats

Example: Hospital Example

Thankfully, I found this best example. Today’s hospital starts using apps for improving their productivity and connects with the patients easily online.

Look at how hospitals are creating customer Loyalty:

Hospital sends pieces of advice, blogs, tips, messages to the patients who take treatment. However, it’s hard to maintain every customer last treatment’s data but now it’s very easy with the help of Artificial Intelligence and Machine Learning.

When patients receive messages, ideas from the doctors, they feel special, they Feel “WOW”, they feel caring.

Plus they feel involvement and engagement with that particular hospital. Everything is connected when it comes to brand loyalty.

So, maintain your CRM Today. I prefer the Hubspot tool.

Grabbing The Right Physiography Of Customer

Eventually, when we worked everything perfectly to build customer loyalty, some things still remain. Every marketer will focus on the things that customer likes but only a few of the smart marketers will focus on the things that customers don’t like.

We, humans, are attracted to certain brands because of each individual psychological makeup. Brand personalities are the following:

  • Sincerity
  • ruggedness
  • Competence
  • Sophistication
  • excitement

So, first of all, you have to find out what type of personality your customers are attached.

Examples in Physiography

Example 1: Patanjali Example

Patanjali always follows their ayurvedic facts to directly register in the customer mind. Actually, it creates an impact in the mind of customers that product is right.

Watch this video to know how Patanjali covey their message:

Example 2: Look how FedEx handled an upset customer on Twitter

Example 3: Amazon Prime Membership

Amazon focuses on customer likes and hates. Amazon focus on customer problems first and solve them easily.

amazon prime membership loyality program
Screenshot Source: Amazon Prime Page

Amazon has started their prime membership service to solves customer problems. Customers feel premium when they use their prime services. In prime membership, Amazon is focused on the following things:

  • Value for money
  • Discounts & Exclusive deal
  • Delivery Free
  • Prime videos free
  • Fast Delivery

Amazon is the king in the market when it comes to customer loyalty

80 and 20 Rule (Game-Changing Formula)

This is a game-changing strategy to build customer loyalty. Transactional business + delightful +surprise by use omnichannel strategy.

With the help of many channels, you can touch the point that makes the customer feel special.

Customer will start saying: Wow!

This is the formula: 80% try to relationship and then 20% sold

It means giving is 4 Times and asking for buying is 2 times.

You have to give discounts, offers, ideas and make the relationship with customer 4 times and ask for buying 2 times.

Try this and let me know in the comments.

Experience Improve through Technology

Today, technology plays a big role in building customer loyalty. Suppose, you have a website and you are providing cleaning services in a particular local area.

If you add a live chatbox on the website to talk with customers live on the website. It can become to engage with that customer and convert them into the conversion.

You should implement the following points:

  • Support
  • Live Chat
  • Bot Chat: Quick Service

Do you know this fact?

“Customer wants to loyal if they find loyalty process easy.”

Updating your business with such technologies can help you build your loyalty process easy.

Forecasting & Feedback

Forecasting & customer feedback is important to build customer. You can run a survey on your product/services to know the customer feedback and make appropriate changes.

The customer feels pride when they asked for feedback. 

Example: Restaurant

Some restaurants always asked for the feedback when customer finish dining. They may convince you to tag hotel on your social media accounts.

Hotels probably convince you to write a review on their Google Maps Listing. This is a way to build loyalty.

Now you might be wondering why the customer will do that?

If customer experience was very good. He/she will write a review for free and post on social media for free.

Hotels also give some discount offers for upcoming visits or offer some free food because of review and tag on social media.

So, this is also a good way to build customer loyalty. Try to relate this thing with your business.

Try Yourself By Running Customer Loyalty Programs

Now it’s your time to try by running brand loyalty programs. You may find many examples of brand loyalty program online. 

According to Deloitte, The brands who run Loyalty program they are 88% more profitable.

Also, read some negative fails of loyalty program online. Make your program by taking care of positive and negative things.

So, make sure to try brand loyalty programs to build customer loyalty that will help you make your business grow.

In The End

So, I hope you like this guide on how to build your customer loyalty. Let me know in the comments if you have any confusions and suggestions.

I am trying my best to make marketing | Branding easy in an interesting and engaging way (With examples, case studies, frameworks, practical scenarios, story examples, experts point of view, statistics and many more.)

I need your support to complete my mission. Sharing from your side is enough for me. It would be better if you suggest an improvement: how can I improve my Content? Let me know in the comments.

Happy Learning!

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