What is the most direct cause of customer loyalty?

Table of contents

Why is customer loyalty an important problem in today’s landscape? 

If you run paid ads or marketing campaigns to acquire new customers and they’re not bringing you good returns, you’re not alone. On average, 3 out of 4 first-time customers seek higher-quality products from all available options and at least 84% of them compare your prices with your competitors before purchasing.

Now, your paid ad campaigns need to work way harder, but how do you know if that will work? In the end, you will be pumping more dollars for meager returns. Because let’s face it - new customers aren’t buying much and it’s more like shooting in the dark. 

But there’s a solution to this universal problem.

Customer loyalty.

Brands today rely on returning customers to see profits because it’s 6-7 times less expensive to retain a customer than to acquire a new one. Loyal customers and brand advocates are crucial to the success of any e-commerce brand. They increase your profitability while reducing your expenses. 

Multiple factors must work together to achieve customer loyalty. Here we’ll learn about each of those factors so you can deliver the best experience to your loyal customers and keep them coming back for more.  

1. The products you sell

The base of good customer loyalty is a good product experience. After all, it is the product that is solving the needs of your customers. When customers trust the quality of your products, they are bound to come back for more.

Various micro-aspects such as aesthetics, ease of use, and feature set define the product quality. The more you rank on these aspects, the better the experience your customer has with the product. This in turn harvests customer loyalty. Loyal customers don't just end up buying more products from you. They also play the role of brand ambassadors for your products, promoting and recommending them through public reviews.

Consider these reviews from the customers on GNC’s mobile app, a fitness and wellness brand. They sure have immense love for the brand and the products, and will most likely keep coming back for more purchases.

2. A personalized shopping experience

Imagine you checking in at Marriott’s. The receptionist greets you by your name and knows whether you’re here for a business trip or for pleasure, and assigns an appropriate room for you. You also find chocolates and flowers in your room to make your weekend with family extra nice.

How special would that make you feel? 

Such is the power of personalization. Customers just love it when you know about their preferences, and understand and value them. This builds trust and fosters strong relationships between you and your customer. 

Product recommendations are the easiest way to deliver that personalization in the digital world. With meaningful recommendations, you are sure to see an increase in both purchase quantity and frequency from your customers. You can recommend products to your customers in the following ways: 

  • Wishlist reminders: If a product on a customer’s wishlist comes with an offer or promotion, remind them about it via push notifications. You can show customers their wishlist on the checkout page to increase conversions and drive instant purchases. Look at this example from SoftTap’s mobile app.

  • “You might also like” section: This is a great way to upsell and cross-sell within the app. Promote products similar to what the user purchases, to provide a personalized experience.

  • “Frequently purchased together” section: Placed on a product page, it displays the most common or compatible pairings with that product.

  • “Buy again” section: Placed at the checkout window, it shows the products the customer bought in the past which might resonate with the current products in their cart. 

You can also take surveys about the accuracy of your production recommendations and improve them more.  

3. Ease of purchasing

With the sheer number of products available in the market, customers often compare multiple products before making a purchase (unless you’re selling the new iPhone on its launch day 🙂). So you must have a streamlined and easy purchase journey to become their preferred choice.

The easiest way to do this is by making the checkout process simpler. Here are some ways in which you can do that:

  • Minimal number of steps: Anywhere beyond 3 steps and you’re risking cart abandonment. Adopt one-click checkouts.
  • Multiple payment modes: Give your users the freedom to use different payment methods like credit cards and popular third-party services like Apple Pay and Google Pay. You can rank even better with implementations like Sezzle (buy now pay later) for more accessibility. 
  • Faster shipping options: Offer your standard shipping mode along with expedited shipping (at an extra cost if needed) in case someone wants something in a short period.    

  • Social login: Let your customers log in through their social profiles. This reduces password fatigue and encourages more sign-ups. It also acts as a boon for your marketing efforts by providing you with high-quality customer data. 
4. Social proof

Do you remember the last time you bought something online with a 2-star rating out of 5? The thought itself isn’t very pleasing, is it? 

Today, not having any reviews is also seen as a red flag. Social proof plays a crucial role in purchase decisions. It determines the quality of the product and also has a strong psychological effect in influencing the purchase decisions of others. 

To cultivate loyal customers, enabling them to leave reviews about your products is non-negotiable. The next step is to encourage your customers to leave reviews. A simple reminder might be enough for some but others would need incentives and freebies. Lastly, be sure to brag about your good reviews on your website and socials. It can do wonders for both customer loyalty as well as marketing.

Check out how Vintage Boho Bags, a luxury fashion brand, shows off their 6,000+ reviews right on their app’s homepage.

5. Customer service and support

About a decade ago, if your customers had a problem with something they bought, they relied on helpline numbers or email in most cases. But today, dissatisfied customers have a far more powerful channel - social media. The situation worsens when they vent their frustrations and others also join in with their negative experiences. 

To prevent that, you should ensure that your customers can contact you without hassle. Phone, email, or in-app chat - the more the channels the merrier. Apart from tackling complaints, it’s always good to have proactive customer support. Customers admire brands that are available at quick notice to handle their queries as this makes them feel valued and heard. 

Check out this app from Vilvah, a beauty and skincare brand. They integrate WhatsApp Chat into their mobile app to provide instant support and resolutions to their customers.

A Zendesk survey found that 89% of participants gave importance to a quick query response in deciding whether to buy from that brand or not.  This again builds trust and confidence in your brand and aids in building customer loyalty. 57% of customers spend more on brands they trust.

6. Rewarding customers for their loyalty

Customer loyalty ceases to exist if the customers get a feeling that their loyalty is going unnoticed. This is where loyalty rewards come in. Rewarding customers for each purchase they make with your brand acts as a strong motivation for them to keep coming back for more. 

You can reward your loyal customers through exclusive offers or point-based loyalty programs. Exclusive offers, as the name suggests, offer special discounts or promotions to repeat customers. Point-based loyalty programs reward customers with a certain number of points for each purchase, which they can later redeem for freebies, cashback, or discounts. This corresponds to the total value of the products they purchase. In addition to purchases, you can also reward your customers for other actions like:

  • Leaving reviews about products they purchased
  • Hosting contests on social media to gather user-generated 
  • Referring others to sign up for your app

Drive customer loyalty with a mobile app

Now that you know about the factors driving customer loyalty, it’s time to put them to use. Many hyper-successful brands capitalize on a mobile app to cultivate customer loyalty. 

Vajro is a mobile app builder on Shopify that empowers brands to win loyal customers through personalized and user-friendly shopping experiences, brand credibility, and multiple customization options. 

Going beyond conventional loyalty and reward programs, Vajro enables you to engage, convert, and retain your loyal customers for life. Try Vajro for free or book a demo today. 

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