Brand loyalty increases customer retention rate.
Customer retention rate is an important factor in determining the growth and strength of the business. Brand loyalty and customer retention have an established relationship. The higher the brand loyalty, the higher the retention rate. Especially in digital marketing companies and internet marketing companies.
Customers do not always buy products from websites. These statistics support the above statement:
92% of consumers who visit a site for the first time do not make a purchase, even if they intend to.
32% of consumers do not end up buying online.
98% of consumers do not make an online purchase due to problems with the content.
Only 7% of shoppers believe in brands online, while 35% do not believe in brands and believe that online brands are doing a bad job.
What customers want is personalized content that they can relate to. One in ten buyers ranked it as their number one priority. Customers want to feel important and prioritized. 21% of shoppers are likely to make a purchase when the brand engages in personalization as it enhances the digital customer experience.
When a customer is looking to make a purchase, there are a variety of things they are looking for. Online marketing agencies in India must understand those needs and do what is necessary. Poor content drives customers away. 98% of buyers have not made a purchase because of this. Providing rich content will optimize the shopper experience ensuring they stick around.
A customer is not likely to stay if they are shown an ad for a product that is irrelevant to them or that they would never buy. This generalization drives customers away because the content is impersonal. 47% of shoppers have seen ads that are not relevant to them.
One item that would benefit from customization is location-based coupons. 44% of buyers confirmed it. Personalized communication is the way to go to increase sales.
The use of purchase history and demographics would help to better understand the interests of the customer, which would improve the level of personalization.
If a brand provides good content and can engage the customer who has visited the website, they are likely to make a purchase and continue to do so because of their experience-driven engagement.
Customer loyalty programs such as points and rewards system for purchases and referrals are also beneficial in keeping shoppers interested in the website. It is also a possible path for brand marketing.
Premium loyalty programs like Amazon Prime, Zomato Gold, etc. that have a fee are gaining popularity in the market. 47% of shoppers said the rewards from paid programs are better than free programs. Since they have paid for the service, they are likely to stay.
Another factor that ensures that customers stay is the factor of social responsibility. Brands that help make a change instead of just making a profit attract customers. Customers, in fact, wouldn’t mind paying more for a product if it was for a cause like donation, charity, etc. When customers spend their money, they’d like to feel like it’s going to a good cause and not just the company’s profit bank. Brands that have social responsibility programs of this type are likely to create emotional connections and goodwill with customers. Speaking of emotional connections, emotional loyalty is very important. It influences the probability that a customer will have a label with a brand. Gallup research has shown that customers who are emotionally connected to a brand will visit brand stores 32% more and spend 46% more than those who are not emotionally connected to the brand. In short, loyalty programs, personalization, rich content, and the desire to engage in social work will act as reinforcements and incentives to keep coming back to a website.
This summarizes the various customer retention strategies, which will help achieve a customer base that provides assured sales.