Vuk Lazarevic
April 14, 2023
5 Mins

Boosting Customer Loyalty: Essentials To Keep In Mind

Boosting Customer Loyalty: Essentials To Keep In Mind

Your customers are the backbone of your business. It's crucial to keep them satisfied and loyal, especially as you pour more resources into acquiring new customers.

However, the market is highly competitive, and with inflation on the rise, maintaining customer loyalty has become even more challenging.

In times like these, customers may be more inclined to switch to a different brand. The question is, how can you bolster customer loyalty and prevent them from defecting?

This article offers expert tips on how to cultivate lasting relationships with your customers.

Customer Loyalty: Definition

Customer loyalty is a force that can propel your business to new heights of success.

At its core, loyalty refers to the tendency of customers to repeatedly choose your brand over others. This means that they are not only willing to buy your products and services multiple times, but they actively seek out opportunities to do so.

The key to fostering this kind of loyalty is to develop a positive emotional attachment with your customers over time. This emotional connection serves as a crucial factor in customer retention, as it motivates customers to continue doing business with you rather than seeking out alternatives.

Customer loyalty is often affected by factors such as:

  • The quality of the product or service;
  • Your customer experience;
  • Brand reputation;
  • Customer service.

Remember, building and maintaining strong customer loyalty is essential for businesses to succeed and grow over time.

Why Is Customer Loyalty Important?

There are several key factors that you should keep in mind when learning about the importance of customer loyalty.

  1. First and foremost is the power of repeat business. When you have loyal customers, you can rely on a consistent revenue stream. This holds true across industries, but it's especially important for companies in retail, hospitality, and food service.
  2. Loyal customers also boost profits by purchasing additional products or services over time, and by referring friends and family to your business. Not only do they spend more money, but they also help you save on marketing costs since they already know and trust your brand.
  3. Loyal customers are advocates for your business, leaving positive reviews and sharing their experiences with others. This can have a significant impact on your brand image and reputation, particularly in a crowded marketplace where loyalty can be the deciding factor between success and failure.
  4. Customer loyalty provides a competitive edge, making it less likely that customers will switch to a rival even if they find a better price.

How To Improve Customer Loyalty

Let’s walk you through various trends and tips that you should keep in mind if you want to have customers that keep coming back in the months to come.

Loyalty Partnerships

While many companies have their own loyalty programs that provide discounts, freebies, or other rewards to returning consumers, the concept of loyalty partnerships is emerging as a hot potential trend for 2023. These collaborations involve two or more brands working together on a loyalty program to offer incentives to each brand's customers, with the purpose of growing their audience reach.

Starbucks and Delta, for example, launched a loyalty relationship in late 2022 that allows consumers to link their Delta SkyMiles and Starbucks Rewards accounts, allowing them to earn extra incentives from both companies.

Rewards members can earn one Delta mile for every $1 spent at Starbucks, improving their chances of becoming a more regular Delta flier. Members can also earn double Stars for purchases at Starbucks on designated Delta flight days. This collaboration is a terrific idea because every airport has a Starbucks location.

Loyalty relationships are most effective when two non-competing yet complimentary firms are involved.

Credit card issuers, for example, work with numerous hotel chains and airlines to allow their customers to utilize their points to book flights and hotels.

If you're looking for a loyalty partnership in 2023, look for businesses with a similar target audience to yours, and whose customers are likely to be interested in your brand as well.


Gamification is a more and more popular trend this year owing to its potential impact on consumer loyalty. The concept behind gamification is that you need to stimulate customers to take action by completing a fun activity (playing a game).

Because 80% of Millennial and Gen Z consumers play video games on a weekly basis, gamification provides a digital experience that is both familiar and engaging to your target group.

This, in turn, encourages customers to interact with your brand more regularly in order to win more rewards. For instance, Lazada, a Singapore-based e-commerce site with operations in the Philippines, Malaysia, Vietnam, Indonesia, and Thailand, is an excellent example of a brand that has successfully incorporated gamification into its loyalty program.

Customers can download an app to track their benefits, which include referral bonuses, discounts, countdown timers till certain perks and prizes become accessible, and more.

One of the most appealing aspects of Lazada's reward program is that clients receive virtual banana seeds. Customers can monitor and manage their virtual banana plants until they give fruit by purchasing seeds that sprout with each purchase. Users can then exchange their bananas for in-app incentives or real-life bananas delivered to their door.

Gamification in your loyalty program is an excellent approach to improve customer engagement and keep them coming back to your company.

Tier-System Benefits

In a tiered program, a brand's loyalty rewards rise as the customer spends more money with the business.

Sephora's Beauty Insider program is an outstanding example of tiered incentives. This program offers Insider rewards, which are free to join and provide a variety of benefits. Customers can, however, upgrade to VIB and Rouge privileges as their spending increases, which gives them even greater rewards.

Brands can entice customers to spend more by implementing a tiered rewards program. Yet, it is critical to guarantee that the prizes at each level are worth the effort required to advance to that level.

Elicit Feedback

You should do whatever you can to show your clients that you value their input and are constantly working to improve your procedures, inventory, customer service, etc. To do so, you must communicate with your clients on a frequent basis to assure their contentment.

When a company makes it difficult for customers to contact them, provide feedback, or even register complaints, this is one of the most serious red flags in business.

Whether you have a TrustPilot, Feefo, or Google Reviews account, dissatisfied consumers will not hesitate to submit negative evaluations, which may dissuade future customers from patronizing your service.

Enabling your clients to submit feedback demonstrates that you are aware of their needs and eager to make any necessary changes.

You can solicit email reviews, distribute surveys, or even provide incentives for submitting a review, such as a "5% discount on their next purchase."

Customer loyalty can be increased by providing an environment in which they feel heard. It is vital to respond to any problems that consumers may be having and to advise them that corrective action is being taken.

Keeping your consumers happy is critical to preserving their loyalty.

Social Responsibility

The question of whether brands should engage is no longer relevant; what matters is how they should do it. A brand's mission should be clear to consumers and in line with its social mission.

Not necessarily on every issue, but where there is a chance to address particular business pain points, brands are expected to be socially conscious and take a stand. For the Gen Z audience, who are influencing their Gen X parents and Boomer grandparents, this is especially true.

The general focus of consumers is on topics like diversity, equity, and inclusion, climate change and sustainability, contentious political issues, and fair employee policies.

To boost customer engagement and have a bigger impact, brands can integrate philanthropic endeavors into their loyalty programs and team up with businesses that have similar values.

Final Words

To get a strategic advantage in your loyalty and CRM initiatives as we approach 2023 and experience the ever-increasing pace of change, keep these tips in mind. You can help your organization stay ahead by being familiar with these trends and their potential consequences.

That could be what sets your company apart from the competition and positions it for success in 2023.

Get Updates every Week!

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Related articles