4 Dimensions of Customer Loyalty that Maximize Customer Retention
-
Upload
antavo-loyalty-management-platform -
Category
Marketing
-
view
854 -
download
0
Transcript of 4 Dimensions of Customer Loyalty that Maximize Customer Retention
DIMENSIONS OF
Customer Loyalty & How to Put Them Into Practice 4
Why does customer loyalty matter?
4-Dimensional Loyalty Framework
Source: Maritz Motivation Solutions, 2015
What is inertia loyalty?
In the inertia loyalty phase, customers shop from you because there are no other alternatives to choose from. This may be because you’re the cheapest on the market, or offer a very rare product. Although that may sound like utopia, you should be cautious, because…
• Prices can be beaten• New competitors can enter the market
Here customers are flocking in, but they can just as easily disappear. That’s why the best competitive strategy is to move beyond this stage and offer your customers real value. This shows you care about them and provides you with a chance for deeper engagement. This is what we will explore throughout the next slides.
Inertia loyalty
Relevance is key here. Try to create ads that are based on your customers’ browsing history, purchased products, or any kind of data that can help you personalize.
Mercenary loyalty: Limited offers
Image source: apptus.com
Tools to help:Apptus, Findify
Give customers a coupon code for certain actions, e.g. when they’ve finalized their first purchase, or when they’re about to leave your site (a.k.a. exit-popups).
Mercenary loyalty: Pop-ups with coupons
Image source: storeya.com/public/couponpop
when they’ve finalized their first purchase, or when they’re about to
Tools to help:Optimonk, NudgrCouponPop
Customers don’t want to earn discounts just for themselves. They also want to share the best shopping opportunities with their friends.
Mercenary loyalty: Coupons forreferred friends
Image source: antavo.com
Tools to help:Antavo, ReferralCandy
Reward customers every time they make a purchase from you. Let customers earn points through a loyalty program by making a purchase, inviting friends or interacting with your social channels.
Mercenary loyalty: Reward programs
Image source: antavo.com
Tool to help:Antavo
every time they make you.
Let customers earn
loyalty program by making a purchase,
interacting with your
Patagonia is an outdoor clothing company that supports the recycling of their products. When your Patagonia clothes get completely worn out, the company buys them back from you and uses them to produce new clothes.
Cult loyalty: Brand message
Image source: patagonia.com
the recycling
Since the 1980s, Harley-Davidson has been diligently building up a brand community based around a shared lifestyle, taste, and ethos. HOG was born as a way for the brand’s highly passionate consumers to connect and engage online.
Cult loyalty: Community
Image source: harley-davidson.com
After forming a strong bond with your customers, the next stage is to allow them to produce content for you, like photos and videos.
Cult loyalty: User Generated Content
Image source: hi.photoslurp.com
Tool to help:Photoslurp
Liliputi is a company that produces baby carriers. In their brand ambassador program, every time their ambassadors post a picture using their hashtag, they display their coupon codes for their followers, so they can get 10% off their next order.
Cult loyalty: Brand advocacy
Image source: instagram.com/liliputilove
carriers. In their brand
so they can
Customers need to be able to reach you whenever a question arises. Moreover, next to your product, customer support is the second most important factor influencing loyalty for 76% of customers.
True loyalty: Friendly customer support
Image source: subiz.com
Make your customers’ shopping journey easy. For example, help them find products they need by listing similar products based on previous purchases.
True loyalty: Personalized product recommendations
Image source: apptus.com
Tools to help:Semknox, Clerk.io, Nosto
In addition to a mobile responsive design, supporting mobile checkout is key. This feature is not one to take lightly –0.75 billion people globally are m-commerce buyers today.
True loyalty: Optimized mobile experience
Image source: stripe.com
Tools to help:Stripe, Applepay
This feature is not
Content marketing expert, Marcus Sheridan, offers an outstanding example of how you can sell swimming pools –quite a unique product – online, by offering customers real value.
True loyalty: Practical marketing content
Image source: riverpoolsandspas.com
The best strategy for maintaining customer loyalty in your store is to optimize your current strategy by mixing the
elements of mercenary, cult and true loyalty.
BUT WHERE CAN YOU START?Just ask yourself the following questions:
Are you making it easy for your customers to engage with you?
Do you reward their purchases in different ways, but also offer them
the opportunity to build an emotional bond with you?
And the most important thing: have you maximized the positive
customer experience throughout the full customer journey?
Next steps
Want to know more? Then sign up to our Loyalty Academy
where you can learn more about customer loyalty.
ENROLL
Resources:Insightsquared.com, Kissmetrics.com, Spoken.com, Branderati.com,
Formisimo.com, Internet Live Stats, Gigya.com,
Blog.accessdevelopment.com, Salesforce.com, Blog.hubspot.com,
Getambassador.com, Citygro.com, Outerboxdesign.com