How loyal are your customers? Would they choose you over your competitors? Questions like these should be asked within company boardrooms on regular occasions. Since customers hold the life and death of businesses in their wallets, it pays (quite literally) to foster sound customer loyalty wherever possible. So, what exactly is customer loyalty really, and are there ways to drive customer loyalty using digital marketing channels? We’re answering these questions below:
Customer Loyalty Defined
There’s a stark difference between customer satisfaction and customer loyalty. Here’s an example to illustrate:
Customer satisfaction is when you go out of your way to assist a customer that had a bad experience with your brand, and they are happy with the resolution. However, there’s a slim chance that this customer will ever spend money with your company again.
Customer loyalty is when that same customer has been treated so well in the past, that one bad experience won’t sully their commitment to the brand and the company. However, to ensure that loyalty flame burns strong, the brand should endeavour to rectify the situation as quickly as possible.
So, satisfaction is when the customer is happy after an interaction with the brand.
Customer loyalty is when the customer is happy with the brand in general, and they prefer to partner with the brand over any competitor brands.