But if you’re working in a saturated market that’s full of similar products, how do you show people your brand is the best? It comes down to giving shoppers a reason to be loyal. It’s tricky in a saturated market, but these five best practices can help you find more loyal customers.
Offer a rewards program.
Did you know 75% of millennial shoppers prefer to buy from companies that offer a rewards program? It’s the reason why Sephora, Starbucks, REI and so many other beloved brands have loyalty programs; they work! Loyalty programs gamify the shopping experience, giving customers a rush of dopamine when they earn rewards. These rewards make shopping addictive, which can definitely foster loyalty.
Loyalty programs give shoppers a reason to choose your brand over everyone else. That’s especially true if your competitors don’t offer rewards. And even if they do, you can analyze their rewards program and do it better, either by offering better rewards or more point-earning opportunities.
Your best bet is to create an app-based loyalty program. This allows you to push out notifications, gather app-specific data and push out limited-time offers to users’ phones. It’s the best way to promote yourself without competitor content taking up valuable mindshare.
Be a mission-focused company.
It’s a sad reality, but 77% of brands could disappear overnight and no one would care. That’s why you need to build a brand with a clear mission.
Think about it: there are plenty of TOMS knockoffs on the market, right? So why do shoppers continue to buy from TOMS? While other brands make similar products, they aren’t giving back in the same way TOMS does.
If you need to deepen loyalty in your niche, take a page out of TOMS’s book and build a brand that gives back. This isn’t just feel-good marketing, either: meaningful brands outperform other brands by 134%.
Find a cause that complements your products and make it part of your mission. For example, if you’re a green skincare brand, your company could champion environmental causes. As long as it’s relevant to your brand and has a tangible impact on the world, go for it!
Protect consumer data.
This sounds like a no-brainer, but it’s actually pretty difficult to safeguard consumer data. There’s been a triple-digit increase in cyber attacks, which means data breaches are affecting more businesses. And, to put it bluntly, consumers don’t think businesses are handling this well: 56% of consumers don’t trust brands to protect their data.
Don’t get sloppy when it comes to customer data. Addresses, order history and credit card information are gold to hackers, so follow common-sense cyber security practices like:
• Two-factor authentication.
• Password and access management.
• Collecting the bare minimum of data.
You’re legally required to protect consumer data, too, so make sure you lock everything down to avoid legal trouble. There’s a good chance you’ll lose your loyal customers if hackers steal your data, so prevention is key.
Provide a better customer experience.
Did you know that nearly 90% of consumers would pay more for a better experience? If your competitors treat customers poorly (or don’t meet their expectations), you can easily differentiate yourself by treating people the way they want to be treated.
This means doing better by the customer with policies like:
• Free replacements.
• No-hassle returns.
• No-questions-asked refunds.
Refunds and returns aren’t fun, but they’re part of running a product-based business. Fraud and theft will probably happen, but it’s still better to give shoppers the benefit of the doubt. Because the better you treat them, the more likely they are to choose you over everyone else.
Thank your customers.
Loyal customers spend 33% more with every order, which has a big impact on your bottom line. So why not thank these loyal customers for their support?
Thank you messages are an underrated — and affordable — way to boost brand loyalty in a saturated market. They help you retain existing customers with gestures of goodwill that encourage them to stay with you. Offer freebies, early access to sales or exclusive codes along with your thank you messages to give shoppers a reason to stick around.
The Bottom Line
Why do customers stay? It’s a question every brand needs to ask. If a customer can get your products cheaper somewhere else, why should they stay with you?
You don’t have to be the biggest or the cheapest — you just need to give shoppers a valid reason to support you for the long haul. Follow these five tips to boost shopper loyalty. Done right, you’ll make a name for yourself in a saturated market and come out on top.