It does not matter if you are a start up or a well-established name in the market, considering customer loyalty is a must. Today, various organizations in multiple sectors make use of customer loyalty programs as a method to gain loyal customers for their business.
Well, as the primary goal of any customer loyalty programme is to acquire new business and retain old ones, it is wise to not overlook its importance. A lot of us have various inhibitions and easily fall prey to myths.
Which is why, as experts in the customer loyalty program genre, we are here to demystify the top 8 customer loyalty myths.
#1 – People Are Not Loyal To The Brand
This is just so impractical. If this was the real case, then think why would people only go for coke or Pepsi? Another example would be of people purchasing trainers only from Nike or Puma. Well, the list can be never ending. But the gist is that, we cannot deny the fact that people are loyal to the brands they are comfortable with.
#2 – Satisfied Customers Are The Loyal Ones
Well, not always. In fact, customer satisfaction is a medium to measure customer’s attitude towards a particular, product or brand. On realistic grounds, customer loyalty is a blend of elements like, attitude, behaviour, feeling and opinions that are associated with purchases.
In short, customers can exhibit loyal behavior with any signs of loyalty attitudes and vice versa.
#3 – High Spending Equals Loyalty
Usually, retailers assume that customers who spend more in their stores are loyal. But in reality customers who have a stronger disposable income are bound to shop elsewhere. Hence, measuring customer loyalty just on the basis of high spending ability is pretty vague. However, a more sophisticated approach for measuring customer loyalty is a must.
#4 – Customers Will Stay With Your Company Effortlessly
Humans are way too indecisive. We agree that customers may like your business, but there is no way competition can be underestimated. As the market space is very dynamic, companies under its marketing umbrella, takes various steps to attract customers and moreover attract customers from competitors.
So, it is unrealistic to feel that, if customers like your businesses they are likely to stay with you. Being proactive is the key for staying ahead of competition.
#5 – Technology Can Exclusively Enhance Customer Loyalty
A lot of business owners feel that making good use of technology can solely be sufficient to improve customer loyalty. Well, that’s not true. Striking a balance between the best practices for customer loyalty is a must.
#6 – Frequent Contact Can Improve Customer Loyalty
Nobody enjoys a never ending number of spammy emails or promotional messages.
We agree that the results of increased contact with customer’s leads to a positive impact, but one should know where to draw the line. It is also necessary for businesses to keep a check on the medium of contact and yes this needs to happen without annoying the customer.
#7 – Building Loyalty Is Expensive For Smaller Brands
No is the answer. There are various simple and affordable customer loyalty platforms easily available to build a great customer rapport. A bit of research can help you find the best one for your customers, without worrying about the expenses.
#8 – Customer Loyalty Seems Impossible To Be Tracked
Digitization has made this easy. However, loyalty can be easily tracked with the help of linked loyalty card numbers. By analyzing this data it is easy to gauge the frequency of visits.