Customer Loyalty & Retention: Key Differences and Strategies

Acquiring customers costs brands more than ever before, and those customers have never been as discerning and demanding of personalized experiences as they have today, according to the statistic from Business Wire

With an increasingly complex marketing landscape, and sky-high customer expectations, how can you drive your desired business results? The answer lies in retention and loyalty.

Customer Loyalty and Customer Retention, while often used interchangeably, are distinct concepts:

Customer Loyalty

  • Long Term
  • Positive Experiences
  • Emotionally Attached to the Brand + Recommendations to Others

Customer Retention

  • Shorter Period of Continued Purchase
  • Pricing Strategies, Customer Service Improvements, Product Updates
  • Rationally Driven e.g. Cost, Convenience, Necessity

In short, companies that can build Customer Loyalty thrive.

Best Customer Loyalty & Retention Strategies

Let’s leverage below 5 strategies to strengthen customer relationships and drive repeat revenue:

1. Unify your data and channels 

If your data is siloed across multiple platforms, you’re not going to get the customer visibility you need. Engage anywhere with an unified platform.

2. Gain insights by analyzing your existing data and channels

If you want to keep customers coming back, you need to know why they’re leaving and plug those holes:

  • Review customer journeys: Where are the bottlenecks? Why are your customers dropping off? 
  • Use heatmaps: How are your customers interacting with your website and apps? Are there any points of friction where metrics could be improved?
  • Gather feedback: Speak to your customers. What content do they want to see on social and in emails? Are the rewards in your loyalty program enticing enough?
  • Launch exit-intent surveys: Are there product bundles that you can create? Are there alternative payment methods which customers prefer? 

Read More:

5 Customer Engagement Strategies for E-Commerce

Try to understand the reasons behind leaving customers.

3. Build personalized, cross-channel experiences

To drive retention and long-term loyalty, you need to start by maintaining your customers’ attention. This can be earned through high-quality cross-channel experiences that are relevant and meaningful, and speak to each customer on an individual level. 

Each time your customers receive a personalized engagement, you set yourself apart from competitors that are pushing generic experiences. 

Learn More:

10 Omnichannel Marketing Tactics Ready-to-Deploy

4. Automate customer journeys

Marketing automation comes in to ensure you’re always sending out the right content to the right person, at the right time to deliver the most impact on the customer, running your customer loyalty strategy 24/7.

5. Measure results

To keep your customers happy while your business also happy, you need to adapt your strategy quickly in view of changing analytics. Take a holistic approach and view retention and loyalty as a whole.

This article is originally published by Emarsys:

Emarsys, an SAP company, is the omnichannel customer engagement platform that empowers marketers to build, launch, and scale personalized, cross-channel campaigns that drive business outcomes. We partner with more than 1,500 companies from global enterprises to fast-moving mid-market brands across industries.

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