Loyal customers are critical to every retailer in a number of ways. They come back more often, talk about the brand positively, encourage friends to also shop and spend on average, a lot more than non-loyal customers. A recent report from Bain & Co found that US loyal customers spent on average $132 a month compared to $71 by non-loyal customers. That is massive.
How do retailers keep these wonderful loyal customers coming back? Here are three ways that every retailer should focus on:
1) Make it easy for customers to research and buy. Customers use many platforms in their research and need to be able to buy how and when they want to. Technology will play a massive part in this, but the transition from digital to physical store and vice versa must be seamless, otherwise customers can easily slip away to the competition.
2) Get the human element right. Even though AI will play a much bigger part in everyday retail shopping, having the right staff that are motivated and knowledgeable is essential. Over 50% of customers cited friendly and knowledgeable staff as the most important factor in creating a great experience according to Retail Dive. Setting clear expectations, training and coaching is the key to getting this step right.
3) Inclusivity is a key to retaining loyal customers. A large number of customers, particularly the younger generation are paying attention to whether companies recognise, race, ethnicity, LGBTQ status and other differences of their customers. Deloitte found that 57% of customers were more loyal to brands that committed to addressing social inequities.
If a retailer approaches each of these points as an opportunity it’s paying attention to its customers on all levels, it will have a much better chance at keeping their loyal customers.
Roger Simpson – CEO, The Retail Solution and Author of “The Ultimate Retail Sales Experience” With over 35 years’ industry experience, Roger Simpson is recognized as Australia’s #1 Authority on customer ROI in the retail industry and as a global expert on staff coaching, customer service, and selling skills.
