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Why customer engagement is key to brand loyalty

Brand loyalty and high customer retention is the key to any successful business. But where does customer engagement come in when it comes to ensuring customers stick around? Learn more here.

In an era where disruptive marketing and customer-centric approach drives businesses, creating brand loyalty is crucial for your company’s success and profits. In fact, according to Yotpo, 36.5% of shoppers said they would spend more on products if they’re loyal to a brand. Meanwhile, Pareto Principle noted that 80% of your profit comes from 20% of your existing customers. 

Customer retention is based on an effective strategy, involving a meaningful relationship with users, trust, and satisfaction. It’s time to put all chances on your side by following those best practices for better customer retention and brand loyalty.

From user-generated content to brand ambassadors

The journey you offer to your customers is a significant factor if you wish to stay ahead of the competition. Brand loyalty isn’t just influenced by the product or service you propose anymore, but rather by the experience you provide your users with. 

One important thing is that people rely on reviews from other customers most of the time to make their decisions. Spiegel Research Center found 95% of shoppers read online reviews before making a purchase. Authentic user-generated content is the first step to turning your customers into loyal users and then dedicated advocates of your brand. 

A satisfied user who appreciates your brand will be more eager to talk about their experience to their relatives and leave a review. Indeed, a study shows that 59.3% of brand-loyal shoppers will also refer their friends and family to brands they love. Moreover, according to American Express, satisfied US customers will share their positive experience with 11 different people. 

The key here is to turn your best customers into your best ambassadors. Involve them through talking with them, asking opinions on your next product, get close to them on social media, create contests, and invite them to play to earn rewards. Giving your customer the possibility to talk is like including them in the business circle. They are not just customers anymore; they are brand ambassadors.

Trusting relationship and emotional connection

A study conducted by CapGemini found that 82% of emotionally connected consumers will promote a brand among their friends and family and spend more. That’s why your strategy should involve efforts in nurturing a deep, emotional connection with your customers. 

Building and cherishing your online customer will only come if there is trust. Your brand can acquire trust through effective customer service, which is crucial, as shown in this study from Microsoft. It found out that 69% of US consumers say customer service is essential when it comes to their loyalty to a brand. Giving your customers the feeling they are being listened to, that their satisfaction is your first concern is critical to creating a satisfying experience and, later on, trustworthy relationships.

Community building and sense of belonging

People are craving for community, especially millennials and GenZ, as mentioned in this article. Individuals tend to look for a place where they can develop. Understanding the high value of having a brand community is a significant factor in developing an effective customer retention strategy and competitive advantage. 

A study from Leader Network shows that 57% of companies in the survey declared customer retention connected to the community was their top digital competitive advantage, and 49% of communities generate revenue. Community building involves creating a space where your users can express their ideas and feelings with other members without feeling judged or restricted. 

Your mission is to provide them with the tools to do so, such as chats, profile features, feed, etc. The more the people feel like they belong to the community you created, the more likely they will come back.


Engaged customers are loyal customers

To conclude, engaged customers are also empowered and loyal customers. All efforts put into maximizing your customer’s satisfaction and retaining them will help your business thrive. It will help maximize profits and give you a significant competitive advantage and attract more users. 

Understanding your customers is critical if you want them to engage with your brand and if you want to keep them. Create a trustful and sincere relationship with your users, provide them with the tools they need to be involved and express themselves, focus on their satisfaction with a seamless experience. Your users will be here to stay.

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