Customer loyalty can be expressed in many forms, and expressions of loyalty may be different depending on the industry your brand is in.
Retail may see loyalty from customers using their “loyalty scheme” cards, apps or memberships.
Hospitality will see loyalty in regular punters who employees may even get to know on a personal level.
Hotels and tourism might experience bookings from guests across the country or even internationally from people who have used their brand previously and have had multiple positive experiences or have signed up to their vacation club or reward programme for example, Hilton Honors.
Even travel companies will benefit from customer loyalty, airmiles and level status’ are often perks given to frequent travelers who choose to use their services time and time again.
You get the gist.
So why do brands go to such lengths (and expense) to encourage customer loyalty?
Not only is the cost of acquiring new customers 25 times more expensive than retaining your existing customers, but loyal customers help your brand to establish a reputation.
A good reputation means that friends and family of your loyal client base are more likely to be recommended to try out your business, generating new customers for you to impress without having to put the effort in to market to them.
Treating your existing customers to perks and rewards for continuing to spend their money with your brand reinforces the relationship and trust between customer and client.
Customer lifetime value can be extended if you nurture and look after your customers. The difference between good customer service and excellent customer service is going above and beyond to exceed their expectations.
Loyalty schemes based on spending habits can help your customers to feel a sense of individualism, like they are special, rather than just another number on a corporate spreadsheet.
For dealers
Now, for the automotive industry, loyalty works slightly differently. For the average joe, a new car isn’t something that you purchase regularly, more like every 3 to 5 years. Sometimes even longer. So how do you keep your customers engaged with such an expanse of time in between experiences?
Communication is key, because despite the purchase of a new vehicle being few and far between, vehicles need servicing.
Aftersales departments and other service workshops are the best place for dealers to cash in on their rewards for delivering excellent customer service. Consistent high standards of customer satisfaction, in both the dealership and the servicing units are going to be the driving factors of loyalty to a dealership.
Automotive loyalty is without a doubt a much more difficult concept due to the high value of the purchases made. However, there are some customer retention schemes out their that have attempted to foster brand loyalty. Take a look at them here...
What else can you do?
As well as using customer loyalty to gain increased sales in other departments throughout your dealership, you can also invite your customers to leave you feedback on their experiences.
Gathering customer feedback, acting on it and displaying great testimonials further reinforces the relationship between customer and seller past the point of delivery.
Contacting a customer after the delivery/handover of a vehicle to catch any problems that might have occurred decreases the chance of someone becoming a detractor from 11% to 3%.
Showing the world that you care about what your customers think helps you to boost your online reputation and builds the first foundation layer of trust between you and potential new customers.
Want to know more about gathering feedback, detailed insights, and reviews from your customers?Get in contact with us today to discuss how we can help your business!
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