A lot of focus lies within attracting new customers, which there is nothing wrong with since you need to grow your customer base.
However, and you have probably heard this before, acquiring a new customer is way more expensive than keeping one. At cost five times as much to attract a new customer, than to keep an existing one.
It is also getting more and more expensive to acquire new customers since the prices for clicks are increasing – which only makes loyalty more important.
Therefore, there is a huge potential in getting your current customers to stay longer and return to your site, but what increases loyalty? As previously mentioned, the answer is great customer experiences.
The before mentioned study, from Acquia, shows that 80% of the surveyed users said that they would be more loyal to brands that show they understand their customers and what they are looking for.
As mentioned earlier, personalization increases the customer experience because users see highly relevant content and products that give them the feeling that websites are tailored towards the individual.
This is the one-to-one communication you should aim for.
Increasing customer retention by just 5% can increase profit by 25% to 95%.
Loyalty is increasingly becoming more and more important if you want to stay relevant and fight big competitors such as Amazon, Wish, Alibaba, Zalando, and eBay.
Previously in this article, we mentioned that customers are no longer loyal to price, but more so to companies that give them a great customer experience.
The big competitors are here to stay, and they will continue to grow every day, and that means you must adapt to this competition. One way you can do that is by implementing personalization into your strategy and increase your customer loyalty.