Top Indicators that Show Your Customers Are Loyal

Aug 5, 2021 • 5 min read

Ini Indikator Customer Anda Dapat Dikatakan Loyal Customer

Each business has different kinds of customers. Some customers come to a business out of curiosity of the products offered, while others just happen to run into the store when looking for a certain product. Some other customers, however, have formed the habit of keep coming back and making a purchase.

Businesses yearn to witness customer loyalty. Do you know how many of your customers can be considered loyal? What can you do to increase their customer loyalty? Check out these customer loyalty indicators and reflect them on your own business!

Customer loyalty indicators to look out for

  1. Repeat purchase

    Repeat purchase is one of the simplest customer loyalty indicators. Customers who keep coming back have a high chance of being your loyal customers.
  2. Purchase volume and frequency

    Loyal customers do not just come back. You’ll also notice an increase in their purchase pattern in both their frequency (number of visits to your store) and volume (the amount of items they buy or their transaction value). They might start with just one product, but they’ll end up being eager to try out your other products and do so more often.
  3. Price is no longer a priority

    Loyal customers are confident with the quality of your products that price is no longer the most important priority that drives their purchase decision. These customers will buy your premium products more than regular customers.
    Loyal customers are confident with the quality of your products that price is no longer the most important priority that drives their purchase decision.
  4. Referral or advocacy activity

    Referral or advocacy is the process where a loyal customer happily recommends your business to their friends and family. Their satisfaction in your business drives them to share about you with others and not enjoy your products alone. They will also gladly share their positive experience with you on social media.
  5. Not easily distracted by competitors

    Although there may be competitors selling similar products as you, loyal customers are not easily distracted and will not switch brands. Even if your competitors offer bigger and more exciting promotions, they’ll most likely still choose you.
  6. Trust

    A deep sense of trust is another customer loyalty indicator. They trust in the quality of your business and your products. Trust drives them not to switch to other businesses. Trust also means that they will not leave so easily when you make some errors.
  7. High engagement

    Loyal customers do not only make purchases from you, they also want to be engaged with you. They’ll happily share their feedback in customer surveys, participate in your ongoing campaigns, and engage with you through other means.
    Have you seen these 7 customer loyalty indicators from your customer base? If you haven’t, there’s no need to fuss, because there are many ways you can try to increase customer loyalty. More often than not, customers just need an extra push to be more loyal. Implementing a customer loyalty rewards program is one of the promising strategies you can try. Take a look at these tips for starting a customer loyalty rewards program!

Loyal customers do not only make purchases from you, they also want to be engaged with you.

Tips to increase loyalty through customer loyalty rewards

  1. Give customers a reason to join in

    Your customer loyalty rewards program needs to instill a desire from customers to join. Each element of the program must be enticing, not just the rewards offered, but also the rules to earn those rewards. As an idea, you can have a weekly contest, or a double reward point system for certain periods of time. Try to mix in different creative ways to keep customers interested in participating.
  2. Create a personalized experience

    Customers do not mind sharing general information about them for a more personalized experience. By leveraging your customer data, you can give more meaningful customer loyalty rewards that are suited for their preferences and behavior. You can give rewards in the form of favorite products from your store, or rewards on special milestones in their life such as their birthday.
  3. Provide various ways to earn rewards

    You may be used to giving rewards to customers for making a purchase. But in order to build a genuine and long-term relationship with them, you also need to give rewards beyond purchase. At first, this might seem too costly on your part, but if you give rewards for activities such as sharing a review, referring a friend, sharing their feedback, or posting about you on social media, it’s quite beneficial for you too! These non-purchase rewards will make them feel more valued and their customer loyalty will increase too.
  4. Provide various ways to redeem rewards

    Conventionally, customers need to come to physical stores, bring their point or stamp card, and redeem the points with in-store rewards. In this era, that system is quite outdated, especially during the pandemic when it’s getting harder for customers to visit physical stores. Make your customer loyalty rewards redeemable both offline and online! That way, customers can redeem their loyalty points digitally, choose their desired rewards, and get it delivered straight to them. Such convenience makes customers more interested to join your rewards program.

Key Takeaways

Every business wants its customers to be loyal. There are multiple indicators to check whether your customers are loyal to you: they make repeat purchases more frequently and their purchase size increases, they won’t be easily lured by competitors, they are happy to engage with you, and they will be your advocates. By increasing customer loyalty through a rewards program, you are giving customers more reason to come back to you! Loyal customers are your best bet in surviving amidst the crisis. Identify them, retain them, and increase the loyalty of those who aren’t loyal yet.

TADA has become a loyalty and rewards solution for more than 400 global and local businesses. Do not hesitate to contact us today because we’ll be happy to create the most suitable customer loyalty rewards program for your business!

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Nida Amalia

SEO and Content Marketing Specialist who loves art, music, and movie.