Going Beyond Transactional Relationships to Build Customer Loyalty in 2023
- Posted on June 21, 2023 by Robert
- Reading time about 6 minutes
Gone are the days when customers simply choose the brand for their services and products. Today, they look forward to building a deeper connection with the brands they interact with. Customers prefer brands that make them feel like a part of the community and be valued beyond the dollars they spend. Yes, going beyond transactional relationships is what must focus on to build lasting relationships.
In a recent research, it was found that 89% of customers say they are more likely to stay loyal to a brand that shares their values. In this blog, we will find out how Brand Loyalty Programs focused on the emotional connection will help in driving more sales and building loyalty.
How to Meet Evolving Customer Expectations in 2023 and Beyond?
As we can see customers now value experiences more than products and services, they look forward to brands that offer hyper-personalized services and the ones that value their needs. People are now more likely to reduce their non-essential spending, which is why brands must demonstrate empathy by keeping focus on building relationships. Customers are becoming more conscious about their purchasing decisions these days and are more likely to value community and experiences over discounts and deals.
Apart from shared values, customers look forward to a personalized experience as they want their products and services to be tailored to their specific needs and preferences.
Here are some of the top aspects that must be kept in mind to ensure your brand meet changing expectations of customers in 2023 and the future-
True Cost and Impact of Discounts
When it comes to discounts and deals, they not only damage the perceived value of the goods and services but also cut the profit margins. This means deals and promotions can come at a high cost though they may be quick and easy to drive sales.
Higher discounts on products can also lead to low customer lifetime value along with lesser satisfaction scores and higher revenue churn. This happens because customers are more likely to rely tremendously on sales and businesses may suffer in the long run as they are mainly attracting less-than-ideal customers.
Furthermore, relying heavily on discounts can impact the perceived quality of the brand’s products and services. Offering the lowest price among competitors can decrease the overall revenue as companies compete to provide the best deal.
Prioritizing Engagement to Build Long-Lasting Bonds
To build stronger customer relationships, brands can now keep focus on building customer loyalty with the help of a holistic approach instead of relying exclusively on discounts and promotions. Considering the current scenario where customers are looking for brands that are more likely to value community, brands must take initiatives to create a sense of community with their customers and build lasting relationships leading to growth with more engagement.
Customers now rely on recommendations that they hear from their friends and family rather than relying on online feedback, which means brands must make use of the Best Referral Marketing Software to implement referral loyalty for retaining existing customers and winning new ones.
Talking about the engagement part, here are some of the most effective tips that brands must try to boost engagement among customers-
– Making Use of Unique Content
One of the most effective ways to engage customers, especially Gen Z, is through the help of unique and valuable content that speaks to their specific interests and needs. You can make use of content in many ways such as blog posts, social media content, videos, etc. where you can share your values educate customers, and help in building a community around your brand.
– Boost Engagement with Rewards and Gamification
Brands can offer incentives through points-based loyalty systems along with experiences and exclusive discounts (rather than the same discount scheme for all), which can help to encourage customers making them engage with the brand more often. By offering valuable rewards, businesses can create a sense of value and recognition to thank their loyal customers.
On the other hand, gamification can help to boost brand engagement by driving growth and building a strong foundation for success. You can do so by adding game-like elements into the customer experience and offering rewards, like digital collectibles, as a part of the game.
– Create Community and Connection
Another way that businesses can implement to build customer loyalty is by creating communities and connections through forums and other spaces that allow customers to interact with the brand.
Having a common place to discuss anything related to your products and services can help your brand cultivate a sense of community to build stronger relationships and more loyal customers.
Through the community–based platform, your customers are more likely to feel heard and understood as your brand actively participates and responds to customer feedback as early as possible. Businesses can build up customer bonds by identifying and responding to customer needs on time thereby increasing trust, loyalty as well as engagement.
– Deliver Exclusive Experiences to Customers
To create communities, brands can provide exclusive customer experiences such as new product launches, special services, or events. This will make your customers feel special as they are given access to something that is not available to the general public. Eventually, this will make customers feel unique and valued as brands they interact with can create a sense of exclusivity.
Though building customer loyalty in the age of distraction and competition is quite tough, the right loyalty program that can make your customers feel valued beyond transactional relationships can do wonders in winning customers’ hearts. If your brand successfully makes your customers feel valued, they are more likely to stay with you for a long time.
It is clear that customers no longer run after discounts and promotions blindly, they believe personalized experiences where the brand understands your needs are more important to build long-term customer bonds. If you are planning to build a community or membership around your brand, you can take the help of Novus, a reliable Enterprise Loyalty Management System that can engage and reward your customers more effectively by prioritizing authentic brand engagement. Connect with our loyalty experts and drive growth by building a strong base for long-term success.