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5 ways to build customer loyalty

Corinna Wolff - Digital Marketer

By Corinna Wolff
On 8 August 2017

80% of your future revenue will be generated from just 20% of your current customers (Pareto principle, 1906). However, retailers spend more time and effort acquiring new customers than retaining existing ones. Discover five simple levers that will help you to engage your customers and thus build loyalty amongst them.

#1 Surprise and delight your customers through reward schemes and upgrades

According to CrowdTwist, 76.82 % of women and 73.84 % of men are likely to shop at a business that offers a loyalty programme. Your customers can be motivated by free upgrades, a new product line or by receiving something they haven’t tried yet. This will surprise them, motivate them to purchase and thus boost customer retention.

France’s national railway company SNCF is using a loyalty programme where customers can achieve four different statuses depending on how often they purchase. Depending on their status, travellers are then rewarded with personalised offers throughout the year (such as reductions, birthday offers, luggage services, bonus offers, etc.)

#2 Offer the ultimate shopping experience

According to American Express, 60% of customers are willing to pay more for a better shopping experience. Make sure your website loads extremely quickly across a variety of devices including mobile, tablets and desktops. Optimise your purchase funnel, provide easy navigation and point out all the important information about your product, prices, delivery options and availability. Amazon, for example, has permanently redefined customer experience and serves as a benchmark for other retailers, service providers and brands.

In 2016, Amazon’s shopping experience regarding search functionality, product page, shopping baskets and their checkout process was rated the highest against 4 key actors in the UK retail industry, according to the Maru/edr retail benchmark report.

Build loyalty with PromoGaming®

PromoGaming® is a special marketing operation which enables you to offer your customers the chance to win their shopping for free or to receive a cash prize. This establishes an immediate emotional link with your consumer due to the fun and original aspect of the offer, which provides a contrast to the numerous discounts received over the course of the year. This solution influences your consumers’ behaviour in the long run: game participants and winners display a significantly higher average purchase frequency. Moreover, 70% of online buyers exposed to PromoGaming® state that the game has had a positive influence on their perception of the retailer (source: Lucky Cart 2015).

For example, Franprix, one of France’s leading retailers, launched a PromoGaming® campaign involving more than 700 participating stores. It gave every loyalty card holder the chance to win their shopping for free and enriched the buying experience.

#3 Add value through deeply personalised offers

Deep personalisation of products, communication, recommendations and promotions, which are based on your customer’s purchase habits, are an effective way to increase your conversion rate. According to Forrester, 77% of consumers were willing to pay more for a brand that provides personalised offers. Invite your best customers to private evening events, provide regular promotional offers to your casual customers and send reactivation offers to your inactive customers.

#4 Provide a great customer service

Good customer service means going an extra mile to meet customer needs: 76% of consumers believe a company’s customer service is a reflection of how much they value their customers (source: Aspect Consumer Experience Survey 2015).  Make sure that there’s a clear and accessible way for customers to communicate with you, help them to find the best solution and quickly provide them with information and respond to their needs.

Don’t forget word of mouth! According to Kolsky 67% of consumers cite bad experiences as a reason for churn. Thus, people who had bad experiences with a customer service were more likely to talk negatively about it on their social channels than those who had good experiences. Customers share 45% of their bad customer service experiences and only 30% of good experiences on social media.

#5 Use social networks to engage your customers

Take advantage of it your online social media community to increase customer loyalty by introducing new products and services and displaying your promotions. Try to engage your customers through customized offers such as special meetings and events, where you share tips on how to use your products to add value. Feelunique UK, which has more than 73,000 followers on Twitter, regular organises online ‘Masterclass’ events. These live sessions give web users the chance to ask cosmetics experts questions. The brand is thus positioning itself as a genuine advisor to its customers!

Take care not to adopt an overly commercial approach however: stay focused on the customer relationship. Pay attention to negative comments on your social network, reply as quickly as possible and constantly interact with your customers. This will strengthen the customer relationship and increase the authenticity of your community.

Here, for example, is how Sainsbury’s, the second largest supermarket chain in the UK, responded humorously to a tweet from a dissatisfied customer:

Exemple social media Sainsbury

Customer centricity is the goal!

Satisfied and loyal customers are not attained by a catchy slogan or a wide product range. You must understand your customers’ behaviour in order to increase satisfaction and loyalty. To get started in boosting the performance of your business and drive sustainable results, keep the five ideas presented here in mind and align your operational processes and company goals with an overall customer centric culture at all levels of your company.

Do you want to know more about PromoGaming® and the advantages it will provide your business to satisfy your customers? Have a look at our case studies or request a PromoGaming® Demo here:


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