Top Five Customer Loyalty Strategies to Boost Retention

Customer retention is a top priority for all businesses. It's not hard to see why when you check out these stats:

• Customer churn costs US providers around $168 billion per year
• Businesses have a 60%-70% chance of selling to an existing customer, and only a 5%-20% chance of selling to prospective customers
• Repeat customers spend 67% more than new customers

In this post, we'll share five actionable customer loyalty strategies that keep customers coming back, so you can build long-term relationships and increase retention.

Strategy 1: Personalized Customer Experiences

According to a report from Acquia, 75% of US consumers agree that if a brand understands them at a personal level, they are more likely to be loyal.

Fanatics knows this better than anyone. Selling sports apparel and fan gear, the company recognizes that if it doesn't get personalization right, it risks losing customers.

Using Fanatics as an example, here's how to use personalization as one of your customer loyalty strategies:

• Tailored Recommendations: If a customer buys a NY Yankees jersey, send them updates when new merchandise drops or when matching accessories go on sale.
• Behavioral Triggers: If a customer browses Yankees gear but doesn't make a purchase, follow up with a limited-time offer or free shipping.
• Personalized Notifications: Send real-time notifications after a big Yankees win, offering exclusive celebratory merchandise or player-specific items based on recent performance.

Access to first-party data makes personalization possible. All brands must communicate an understanding of the need to respect and secure this data. One way to ensure privacy compliance is to use a data clean room.

Strategy 2: Exceptional Customer Service

According to Salesforce, 91% of customers say that a positive customer service experience makes them more likely to make another purchase. This is why customer service is one of our top customer loyalty strategies.

At a basic level, customer service should be quickly responsive, empathetic, and focused on problem-solving. To stand out from the crowd, think of ways that your customer service can go the extra mile.

• Publix, which regularly ranks as #1 in the supermarket category on Newsweek's America's Best Customer Service List, takes input from local customers and stocks items that they request.
• Zappos is famous for its free shipping on any number of returns and its 365-day return policy.
• Chewy is known for the personal care and attention its customer service reps show all customers. The company regularly receives rave customer service reviews, and reps even send flowers and handwritten notes when pets pass away.

Strategy 3: Loyalty and Rewards Programs

Time for fun! Loyalty and rewards programs provide customers with an extra incentive to shop with you. According to LoyaltyOne, loyalty program members contribute to 43% of companies' annual sales, with 95% of companies reporting that loyalty members spend more than non-members each year.

And the benefits don't end there. US consumers participating in free loyalty programs also exhibit the following behaviors:

To implement a loyalty program, consider options such as points-based systems and tiered rewards. Some companies use gamification. Fluent's Customer Loyalty solution is a great example. With it, users play games and complete offers in exchange for points and rewards they can redeem toward future purchases. The combination of fun and relevant offers keeps users coming back for more.

Strategy 4: Strategic Partnerships

Authentic strategic partnerships that align with the company mission and resonate with customer values are powerful tools for deepening connections and boosting customer loyalty.

There are two types of partnerships to keep in mind:

1. Partnerships that focus on providing unique and convenient experiences/deals for your loyal customers.

See it in Action: Southwest partners with many hotel and rental car companies to give customers more ways to earn rewards points. As the airline says, "The best part is, these are purchases you planned on making anyway [when traveling], so you will be earning points without any extra effort."

Source: Southwest

2. Partnerships that focus on how you help others (and how yourcustomers can support these causes by purchasing from you).

See it in Action: Home Depot works with nonprofit organizations to support disaster relief, build and repair homes for veterans, and provide training opportunities for tradespeople. Customers who find these causes meaningful may be more likely to make Home Depot their first choice for home improvement purchases.

Source: The Home Depot

Strategy 5: Brand Communities

Companies that successfully build brand communities encourage customers to see the brand as a part of their lifestyle.

Two stand-out examples of companies that have created strong brand communities are REI and Lululemon.

• REI: Brand community involvement includes everything from REI's lifetime Co-Op membership with member-led initiatives that directly impact the store, to virtual and in-person classes and events.

Source: REI

• Lululemon: Lululemon's brand community offers members experiences such as free yoga classes and larger festivals. These events bring people together to focus on health and wellness.

Source: Lululemon

If brand communities are new to you, remember to start small. Clearly communicate your mission and values in ways that resonate with your customers. Then give them ways to connect with you and live out these values. This can be through social media groups, customer forums, or in-person events. Make your customers feel part of something special, and they won't shop around.

Conclusion

Now you know our top five customer loyalty strategies to boost retention. Implement these strategies today so you can maximize your revenue and build lasting customer connections to carry your business into the new year.

If you want the help of an expert, contact us at any time to get started. Not to brag, but we've helped companies crush CAC targets and drive paid subscribers at scale - just to name a few of our proud moments.

Check out more resources to get fluent in:

A/B Testing | Customer Lifetime Value | User Acquisition

Fluent, Inc. is a leader in performance marketing, offering data-driven customer acquisition and partner monetization solutions that exceed client expectations. We connect brands with consumers at the most optimal moment, unlock additional revenue streams for partners, and empower advertisers to acquire their most valuable customers at scale. Connect with us now to level up your business: https://fluentco.com/contact/

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