Guest Post: Now is the Time to Implement Effective Ways to Gain and Retain Customer Loyalty

This week we feature an article by Rakshit Hirapara, a content marketer at LoyaltyXpert. He shares different strategies businesses should implement during a world crisis in order to gain and retain customer loyalty.

COVID 19 is proving to be like an earthquake. Its tremors are changing the World’s economy and the way you work and do business. As it is, India’s economy was in a downward spiral with growth touching 4.7% in 2019 and the Coronavirus impact could see growth crash to less than 2%.

OECD study estimates that the global GDP will drop below 2.4% and it could be even less depending on which way the Coronavirus goes.

If it spreads then growth could drop to less than 1.5%. It will be 2021 before one can see any improvement. What do you do in the interim to gain and retain customer loyalty?

Weak purchasing power

Lockdowns put the brakes on incomes, production, and purchasing power. Unless it is important, people are likely to focus only on essentials and leave non-essentials for another day. If your products happen to be in the latter category this does not mean you simply let it go.

It is time to redouble efforts when purchasing power is weak. Most marketing activities have the goal of getting targets to buy. You can do that too but with a difference. The normal customer loyalty program has layers such as discount coupons, cashback, points and freebies that may not work in the changed circumstances. You can buttress weak purchasing power by offering better deals, better support and perceived value in buying now rather than in the future.

It becomes important to keep in touch with customers all the time because studies show that about 78% of customers who feel ignored are likely to switch loyalty.

Keeping in touch and showing concern

Sales and marketing might argue that when people have had to take pay cuts they are not in the mood to spend. Now is the time to show that you are a company with a heart. Such customers are likely to dip below the radar and frequent buyers become infrequent ones. The loyalty strategy worth adopting is to keep in touch and show concern for your customers.

People are worried on many fronts like health, money, work and so on. If you are offering rewards programs you can show concern by offering extended validity for the redemption of points or coupons.

They are likely to rope in new customers for you, reducing the cost of acquisition while building stronger bonds in the process if you show concern for their situation. Customers prefer a company if it shows that it cares for the customer for the world, understands the customer and makes customers feel special. 76% of customers value a company that helps them support a cause close to their hearts. Has an existing customer donated to the Corona cause? If so, offer them rewards.

Do more

When times were normal you could get by with the usual set of rewards but these are extraordinary corona times calling for more efforts.

Reliance Industries provides free meals to people, donates money and keeps its malls open till 11 PM so that shoppers face no issues. One popular way to garner loyalty is to distribute masks and sanitizers. Hindustan Unilever has reduced the prices of soaps. Customers know all this is temporary but the effects will endure. Let a loyalty expert analyze what your company can do to project a caring image by doing something more than just offering coupons and discounts.

Statistics show that chances of sales to existing customers are about 70% compared to 20% to acquire new customers. Further, 20% of existing customers are likely to contribute to 80% of profits, a crucial factor considering just how much the Coronavirus pandemic has affected business in this year.

The Corona pandemic may be a temporary phenomenon. However, it also opens a window of opportunity for you to implant your business image in the customer’s mind today. Lockdown is not time to shut shop and suspend operations but a time to engage loyalty experts to implement ways that will help you acquire more new customers as well as retain existing customers with a generous rewards program. When things become normal these customers will remember and reward you.

Rakshit is a content marketer at LoyaltyXpert, a loyalty program company in India. He holds spectacular skills in loyalty programs, marketing, and customer retention.

For more articles from Shep Hyken and his guest contributors go to customerserviceblog.com.

Read Shep’s latest Forbes article: Five Ways To Be The Disney Of Your Company