How to master customer loyalty with customer service (+4 tips)

Customer loyalty: there are few things that delight people more than excellent customer service.

As a marketer, a primary goal is often to attract and retain customers. In order to achieve this, you need to create an environment that fosters the building blocks of customer loyalty, and that starts with providing exceptional customer service. Customer service is the backbone of many successful businesses, and it’s essential to maintain a high level of service if you want to create a positive experience for your customers. This positive experience will not only encourage your customers to return, but will also inspire them to tell others about your business, resulting in new customers and increased revenue.

In fact, research has shown that customers are more likely to recommend a business to others if they have had a positive customer service experience. So, if you want to build a loyal customer base, providing exceptional customer service should be your top priority. In this article, we’ll explore the importance of customer loyalty in business and how it can be achieved from the ground up, starting with excellent customer service.

What is customer loyalty?

Customer loyalty refers to the strength of relationship between a customer and a brand – the positive relationship, the willingness of customers to repeatedly purchase products or services, and continued engagement with a brand. Customers develop loyalty towards a brand when they have a consistently positive experience with the company, and they feel satisfied with the value that the product or service provides them. 

Customer loyalty is important because it helps to drive sales, increase revenue, and reduce marketing costs. Loyal customers are more likely to recommend a brand to their friends and family, which can lead to new customers and increased profits.

Why is customer loyalty important? 

Customer loyalty touches many different parts of your business (and has a huge effect on just about every metric you track). If your customers are consistently unhappy and don’t repeat purchase, your company will feel the impact! In addition, acquiring new customers tends to cost more than maintaining a healthy relationship with existing ones. 

This is the main reason why creating that bond between brand and customer is so essential. As a basic foundation, customer service impacts loyalty – people can change their minds about a company in an instant. If they experience unhelpful and slow customer service, they may think twice about buying from that company again. A majority of successful companies consider long-term customer value to be a top priority. Moreover, customer loyalty is essential to reduce your churn rates, and focus on retention metrics.

What is the most direct cause of customer loyalty? 

A key foundation and starting point for building customer loyalty is excellent customer service. Customers want to feel valued and appreciated by the companies they do business with, and exceptional customer service can create a positive emotional connection between the customer and the brand. 

When a customer has a problem or a question, they want it to be resolved quickly and efficiently. A company that provides prompt and effective solutions to customer issues creates a strong sense of trust and loyalty with their customers. Customers who feel that their needs are being met and their concerns are being heard are more likely to continue doing business with that company in the future. Therefore, providing excellent customer service is the most direct way to cultivate and maintain customer loyalty.

Why customer service can help reduce churn? 

Providing excellent customer service can help reduce churn, which is the rate at which customers stop doing business with a company. Customers are more likely to continue doing business with a company if they feel that their needs are being met and their concerns are being addressed. A company that provides prompt and effective solutions to customer issues creates a sense of trust and loyalty with their customers. On the other hand, poor customer service can lead to dissatisfaction and frustration, which can ultimately result in customer churn. By focusing on providing exceptional customer service, companies can create a positive customer experience that fosters loyalty and reduces the likelihood of churn. In this way, the customer service team plays a crucial role in preventing customer disloyalty and ensuring the long-term success of the business.

Customer loyalty: 89% of customers who had recently switched from a business to its competitor did so because of bad customer service.

4 customer loyalty tips you should remember!

Now that we’ve discussed why great customer service can lead to customer loyalty and help reduce churn, it’s time to talk about actionable ways you can delight your customers.

1. Take time to get to know your customers

It feels great to be remembered. Companies should prioritize getting to know their customers on a deeper level than just ‘another customer’. This may seem easy enough, but it’s pretty hard to execute genuinely. 

 When a customer feels valued, their experience with your brand skyrockets. Take birthday emails for example. 

Many companies utilize email marketing on a regular basis to connect with customers authentically. It feels nice when a friend or coworker remembers your birthday so why should it stop there? Companies can use personalized emails to make customers feel valued. And when they feel valued their loyalty increases.

Wouldn’t it be great if your favorite company remembered the last purchase you made with them and gave you a discount on that product or similar complementary products? Maybe they’re releasing a new product and email you with an early access coupon code. Little things like this can ‘wow’ the customer.

With email and marketing automation software, you can strengthen the relationship between you and your customers tenfold. This software helps marketers send personalized messages to large groups of people at the same time. It’s a great way to show the people driving your revenue that you care about them.

2. Use tools to assist your customers

Say your customer is having issues with the cable package they bought from you. Say they’re sitting on their couch at midnight and can’t figure out how to set it up. It can be frustrating to wait until a company’s working hours to address the issue. This is yet another area where you can use customer service to increase customer loyalty. 

Enter live chat software. Live chat allows companies to communicate with their website visitors in real-time via chat windows. Customer service representatives can utilize live chat software to provide support to users who have questions regarding products or website navigation outside of opening hours. It’s also great for customers who do not wish direct contact with your company, but need help regardless.

By providing this extra assistance to your customers, you boost overall satisfaction. They know they can find help on your website if needed. It’s just one more thing you can use in your customer service efforts to strengthen that loyalty. 

3. Seek customer feedback

Actively seeking customer feedback pairs perfectly with customer loyalty. Positive reviews of your company will lead potential customers to your business, great customer service will turn them into customers, and happy customers will leave shining reviews. It’s a beautiful circle. Of course, when you’re seeking feedback from your customers, you want to make sure you’re taking the time to improve your customer service efforts as well. If there’s no effort to provide a pleasant customer experience, the good reviews will not come. 

There are plenty of ways to discover what your customers are really thinking. To start, you can include a quick survey at the end of an email or even send a post-purchase email. Social media is full of thoughts from active consumers. A quick scroll through Twitter can give you insight into how you can improve your company. 

4. From customer service to customer loyalty: how gamification can help you get there

Gamification is a fun and effective way to engage customers and incentivize them to participate in your loyalty program. By adding game-like elements such as challenges, rewards, and point systems, you can make your loyalty program more enjoyable and engaging for your customers. 

For example, you could create a points system that rewards customers for each purchase they make, with higher point values for larger purchases. You could also offer bonus points for completing specific challenges, such as sharing your brand on social media or referring a friend. Additionally, incorporating interactive games like a wheel of fortune or scratchcards can add an element of surprise and excitement. This will make the customer experience more enjoyable and memorable. 

In fact, a study made by YouGov and Playable showed that 51% of participants agreed that winning a voucher was more valuable than being given one. 

To summarize, by incorporating gamification into your loyalty program, you can create a sense of excitement and competition among your customers. This can motivate them to continue doing business with your brand. This can help to increase customer loyalty and drive sales, while also making your brand more fun and memorable for your customers.

From customer service to customer loyalty: how gamification can help you get there

Customer loyalty is essential for the long-term success of any business. The most important element of customer loyalty is providing exceptional customer service. By creating a positive customer experience and fostering strong relationships with your customers, you can cultivate loyalty that will keep them coming back for more. However, in today’s digital age, customers are bombarded with a plethora of options, and it can be challenging to stand out from the crowd. This is where gamification comes into play. Gamification can be an effective way to enhance customer engagement, incentivize repeat purchases, and build brand loyalty.

If you’re looking to incorporate gamification into your customer loyalty strategy, Playable is a leading gamification platform that can help you achieve your goals. With a wide range of customizable games, Playable can help you create unique and engaging loyalty campaigns that will keep your customers coming back for more. So why not book a demo with Playable today and see how gamification can help you take your customer loyalty strategy to the next level?