The Challenge of Loyalty: How to Make Customers Keep Coming Back

Most retailers are so focused on acquiring new customers that they often forget the importance of retaining those who have already made a purchase. They sense that something is wrong but don't know what it is. So we'll tell you: what's wrong is that between 60% and 70% of retail customers do not go beyond the first purchase.

A customer who has made a purchase in your store:

• Went through an onboarding process;
• Had an experience with your brand;
• Received customer service;
• Provided data;
• Made a payment;
• Trusted your company.

All of this has a cost for the company and value for the customer: why waste all that work? Getting these people to make a second purchase is much more feasible and cheaper than acquiring a new customer.

Therefore, in this post, we explain the importance of loyalty so that customers always come back and, consequently, increase sales.

The Challenge of Loyalty

Loyalty is not just a desirable goal; it is a critical necessity to maintain a profitable business. The problem is that often the logic that governs markets is not so easy to see.

Therefore, the first question you must ask yourself is: Do I really know my customer? And the key question: What makes my customer come back?

The good news is that these questions are answered with data!

Registration Data

Registration data refers to demographic and personal information of customers, such as age, gender, location, education level, marital status, and occupation.

They allow retailers to segment their customer base into specific groups, facilitating personalized interactions and improving the customer experience to stimulate loyalty.

Transaction Data

Transactional data includes purchase details and commercial interactions, such as products purchased, amount spent, purchase frequency, and payment methods.

They help identify purchasing patterns and product preferences, allowing retailers to personalize offers and promotions to better satisfy customers and optimize loyalty programs.

Behavioral Data

Behavioral data record how customers interact with a store, both online and offline. They include web pages visited, time spent in each section, products viewed, responses to marketing activities, and social media.

They help identify purchasing patterns and product preferences, allowing retailers to personalize offers and promotions to better satisfy customers and optimize loyalty programs.

The Importance of Technology in Loyalty

Integrating technology into loyalty strategies is essential for success in today's market. By using CRMs, artificial intelligence, and predictive analytics, retailers can significantly improve the customer experience, fostering loyalty and increasing retention.

These tools not only allow for a better understanding and personalization of customer interactions but also provide the foundation for a stronger and more successful long-term relationship.

For example, they are ideal for managing cashback programs for customers!

Efficiency in Data Analysis

Customer Relationship Management (CRM) systems and artificial intelligence platforms allow efficient collection and analysis of large volumes of customer data, facilitating a deeper understanding of their needs and desires.

Personalization at Scale

With the help of these technologies, retailers can offer personalized experiences to each customer, tailoring offers and communications to their specific interests. After all, personalization increases customer satisfaction and promotes loyalty because customers feel valued and understood.

Predictive Analysis

Predictive analysis tools are capable of identifying patterns in customer behavior, allowing retailers to anticipate their future actions and needs. By understanding these patterns, retailers can design more effective strategies to maintain customer interest and satisfactiion.

Preventing Customer Loss

Predictive analysis technologies can also predict which customers are more likely not to return, providing valuable information for taking preventive measures.

Retailers can implement targeted retention campaigns for these at-risk customers, offering incentives or personalized solutions to regain their interest.

Strategic Points to Improve Loyalty

But talking is easy; the difficult part is implementing strategies and achieving concrete results. Therefore, we will now give you the most valuable information so that you can leverage this knowledge and apply it in your store.

1. Engagement. The main challenge is to think outside the box; often retailers believe in market formulas that are already obsolete and add nothing. Therefore, here's the first advice: engagement is key. It's necessary to create strategies so that customers become committed. The message is: commitment generates commitment.
   Interaction is what makes the customer remember you and come back; therefore, it is essential to seek appropriate communication channels with your customers and motivate them to interact with your company.
   When customers feel involved and emotionally connected to a brand, they are more likely to be loyal and act as brand advocates, recommending it to others and increasing its long-term value.
2. Execution. Execution is the second strategic point that often goes unnoticed: it's no use just having a brilliant idea; it is necessary to execute it.
   To facilitate turning this idea into reality, it is essential that:
   
   
   • Salespeople are well trained not only in products but also in customer service skills;
   • Integrate the concept that execution also means providing real-time support;
   • Have a responsive website for mobile devices.
   
   By improving these aspects, it will be possible to create a sales mechanism that will allow focusing on day-to-day execution.
3. Loyalty Programs. Now, after understanding the previous points, it's possible to think of a more standard action, which is implementing a loyalty program.
   But because they are so effective, they have been used by many companies, so the real issue here is to differentiate yourself. It's necessary to have more than just a loyalty program, but rather, the best loyalty program!
   For that, you need to base it on the following four pillars:
   
   
   • Simplicity: easy to understand, easy to access, and with clear rewards.
   • Short-term stimulus: promotions in specific periods, immediate rewards, and exclusive events.
   • Training of the in-store team: continuous training, technological tools, capacity building.
   • Reactivation of Customers with Artificial Intelligence: predictive analysis, personalization, and automation.
   
   Do you see how fostering loyalty in retail is not an impossible mission? It all depends on knowing how to take advantage of technological opportunities to know the customer, anticipate their needs, and motivate them to always come back.