Customer loyalty is a vital factor in bringing long-term success to any business. Turning your satisfied customer into your brand advocates is a challenging task. Customer loyalty is all about repeated business from the same customer. Building trust is the key to opening the door to loyalty. In this article, we will discuss the types of customer loyalty you have to be aware of while building the best loyalty program for your business.
What are the different types of customer loyalty?
Building customer loyalty is not a one-day process. Whether you want to retain a customer with your brand you have to provide a good shopping experience, which includes well-mannered customer service, quality products, an easy return or exchange policy, more offers, goods worth the price, etc. Let’s check the types of customer loyalty now so that you can understand your customer more and create loyalty programs according to that.
1. Transactional Loyalty:
Transactional loyalty is considered the best among all the loyalty types. It completely depends on offers and discounts. You have to provide more attractive offers and discounts to loyal customers. It is always better to choose an offer that they can redeem for their next purchase. So that you can increase the chance of repeated business.
2. Social Loyalty
Social media channels are nowadays the best platforms for engaging your customers with your brand. You can reward more points or offers to those active followers who are always engaged with your post by sharing, commenting, retweeting, etc. This is the best way to input some additional marketing techniques to get better reach.
3. Engagement Loyalty
Similar to social loyalty engagement loyalty is also based on how the customer engages with your brand online. You can classify those customers into this group those are downloading your catalogs and case studies, subscribing to your newsletters, watching your YouTube channels, etc.
4. Emotional Loyalty
This type of loyalty is based on the customer’s emotional connection with the brand. Wishing them their birthdays and anniversaries by giving special offers is the best way to build customer emotional loyalty. A special birthday note from their favorite brand will make them feel special. Customers who are emotionally loyal feel a strong attachment to the brand and are more likely to recommend it to others.
5. Behavioral Loyalty
This type of loyalty is based on the customer’s repeated purchases of a brand’s products or services. Customers’ shopping behavior can be tracked using different shoppers’ tracking analytical tools like EGoal and you can design offers accordingly. Customers who are behaviorally loyal continue to buy from the brand out of habit or convenience.
6. Advocacy Loyalty
This is like a referral program. Like social loyalty customer is rewarded for referring your brand to their connections. According to surveys people are more interested in a brand when it is referred by a friend or colleague. This type of loyalty is completely based on the customer’s willingness to recommend the brand to others. Customers who are advocacy loyal will not only continue to buy from the brand, but they will also promote it to their friends and family.
Why is customer loyalty important?
These are the main things that a loyal customer assures you.
- Repeated business is assured
- You don’t need to worry much about the competitor’s sales tactics
- They will bring you more business through mouth publicity and social media channels
- Always connected to your brand as a brand advocate.
- You will get genuine feedback on your newly launched products and will provide you feedback enriched with new thoughts and areas where you need to improve.
- They are easier to sell to. You don’t have to educate them about your brand value as they are already aware of it.
- They will always be ready to spend more compared to a new customer.
In short, customer loyalty depends on how you treat your customers. Make your customers happy with quality products, service, and the best loyalty programs, you can see how your brand is growing.
