The Journey from Reviews to Retention; Building Brand Loyalty with Reviews
- Posted on June 10, 2022 by Robert
- Reading time about 5 minutes
As the regular customers, we tend to buy almost everything based on genuine reviews, considering the limited pocket and grossing prices around, better to look at the opinions of the previous buyers. To keep the shoppers coming back and generate sustainable brand growth, most of the leading brands are incorporating customer retention programs or taking help of a customer loyalty software solution. But, what exactly do these program do? Let’s understand the journey from reviews to retention.
Apart from integrating a loyalty program for your business, there another aspect to add on, it is the loyalty strategy. Combining the power of both can ultimately drive retention and accelerate brand growth at the same time. Let’s dive deep-
Understanding the Key Aspect-Retention
Customer retention is always the basic goal, no matter what your business is offering. Before you have an impressive audience base, nothing seems feasible in terms of business growth. How exactly are brands retaining customers? Is it just a loyalty program which can prove magic or maybe it requires a lot more than just a loyalty potion? All starts with the right strategy and gaining positive reviews is the leading strategy in the journey. Mostly getting reviews from the most loyal customers of a brand, is all a brand would ever ask for, why so? Because its organic and genuine! The retention strategies allow brands in attaining business growth and increase the return-on-investment blending both reviews and loyalty solutions.
Perks of Collaborating Loyalty & Reviews Strategy
A study conduced in 2022 by Yotpo found that amongst 3800 global customers, 64.7 percent of shoppers want to shop directly from brands who they are loyal to. It showed a 161 percent higher conversion rate for shoppers that are visualizing user-generated content and reviews on the brand’s website, this also showcases the potential benefits brands can gain from leveraging both loyalty and reviews. A few benefits are listed below-
- A relatively improved over customer lifetime value
- Elevated average order value
- Highly boosted conversion rate across various products
Ways to Build Retention through Loyalty and Reviews
Brands can effectively strengthen retention strategies by incentivizing repeat purchases, building multiple engagement strategies through channelizing integrations between brand loyalty and reviews solutions. Through boosting all three essentials like CLV, AOV and CVR, it can ultimately execute impactful retention strategies.
- Boosting Customer Lifetime Value through More Reviews
Businesses can conveniently boost their customer’s lifetime value through emphasizing and focusing on rewarding their most loyal customers and analyzing customer data which including the feedbacks like product fit, product quality, shipping information and so much more. The basic goal every business must follow is to turn the first-time customers into repeat purchasers and ultimately switch them to a brand advocate. All this process can be easily executed through introducing customer reviews and feedbacks on every purchase, product outlook and the services offered to them as well. Therefore, the only way to boost customer lifetime value is through adding in more reviews possible where customers can checkout and interact with each other through a brand community or regular product review sections.
- Maximizing Repeat Purchase Rates and AOV with Smart Customer Experiences
Exactly how loyalty programs are the drivers of customer retention, the demand for hybrid loyalty solutions are also increasing significantly. As per a statistic, 50 percent of consumers are willing to engage with a brand’s loyalty program through a mobile device even while stopping in-store or at a physical store. This clearly indicates that the shoppers are searching for loyalty solutions that can considerably unify online and offline shopping and create a way more user-friendly customer experience in itself. Businesses should aim on maximizing repeat purchases and simultaneously aggregating the average order value, this ca n only be possible through delivering right customer experience and serving smart loyalty solutions facilitating customers in trusting a particular brand and create better solutions all-together. Through rewarding customers on repeat purchases, either to new customers or the long associated ones, a brand notices 175 percent higher repeat purchase rate from loyalty redeemers in comparison to non-loyalty redeemers. Combining the power of reviews and loyalty do not just grow a brand’s AOV but also have the potential to boost repeat purchase rate to as high as 66 percent resulting in 15.4 times return on investment.
- Improving Conversion Rate through Social-Media
Social media is by far the most underrated factor in today’s times though it has the power to boost marketing extensively. In addition to ratings and reviews, brands have now started realizing the potential and capabilities of social proof on building customer satisfaction. Instagram found that nearly 87 percent of shoppers that are interacting with a social proof which includes VUGC through social media, are taking an action in the consumer journey. Social media is a major contributor in driving better customer retention and improving the conversion rate as well. Introducing various contests on social media, or incentivizing customer interactions particularly on social media brings an all-exclusive and fresh option to create engagement and boost customer attention as well.
Right Technology is the Right Solution
The eCommerce industry is continuing in growth and brands have to stay extra competitive to be in the race, stretching the horizons. Making use of technology creates unified benefits through leveraging existing loyalty customer’s feedback and rewarding on every possible interaction and engagement. Make use of business analysis and artificial intelligence to have accurate data at your disposal.
Still not found the right loyalty program platform for your business? We hope you’ve realized the importance of having one for your business. Get started with a smart customer loyalty program combining the power of loyalty and customer reviews/ feedbacks to maximize benefits and create better results in the longer run. Require more insights? Connect with us and our dedicated experts will get in touch soonest possible.