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How to Strengthen Customer Loyalty in Retail

29th Apr 2017
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Companies have always tried to attract new customers and expand their business. A bigger customer base eventually means stronger brand influence and higher revenues. However, loyal consumers make up the cornerstone of a business. For instance, a 5% increase in customer retention produces more than a 25% increase in profit in the field of financial services.

Loyal buyers spend more money, require less marketing investments, and recommend your company to acquaintances. Therefore, customer retention is even more important than acquiring new purchasers. But how exactly do you create a strong base of loyal retail consumers? It takes a lot of effort and an effective strategy. Here are the best practices for encouraging customer loyalty in retail!

  • Good communication with customers

The first impression is always the most important. No matter how good and reliable a company’s products might be, potential buyers will form an initial impression about your brand, based on their communication with a salespersons. Teach your staff to act carefully : they need to address potential customers, but never aggressively. Smooth and polite communication will break the ice and lead to a more comfortable consumer experience. Potential buyers should feel welcome in the store, never hesitating to ask salespersons about product details. Good communication with customers is not a guarantee of purchase, but it is most definitely the first precondition.

  • Call them by name

One of the most annoying things in life is to keep meeting people who cannot remember your name. The situation is no different in retail! Your employees must know the names of regular visitors in order to create an atmosphere of familiarity. Encourage sales staff to share names with clients or customers as early as possible. Calling someone by name reveals a firm relationship and proves that the customer can count on you at any time. We all have a few spots we frequent regularly, so try to make your retail store one of those places that encourages loyal customers.

  • Staff training

The first two tips are closely related to this one. Besides communication skills, you have to train your staff to know the essentials of the products they’re selling. Let them know the history of the brand, the best-selling products, technical specifications, and potential issues with earlier releases. Put together a guide dedicated to loyal consumers, for example, what they like to buy or how to approach them. Train representatives to be able to describe products concisely but effectively.

  • Reward loyal customers

Customers appreciate any kind of added value you give along the consumer journey. There are numerous ways to reward them: discounts, small gifts, loyalty programs, and so on. What you choose depends on brand values and a loyal consumer’s profile. Make sure not to waste your marketing budget on gadgets or gifts which have no impact. In some cases, a customer may enjoy a simple handwritten thank you note, following their purchase. Pay attention to these little details because it can really improve your relationship with your consumers – always keep in mind that repeat buyers spend 33% more than new ones.

  • Resolve issues

It is not easy to attract the same purchasers all the time, so don’t think that simply offering a great product will get the job done. Additionally, your products cannot always meet expectations and you will have to deal with unsatisfied consumers occasionally. In that case, it is crucial to resolve all issues quickly. Listen to customers’ feedback and work hard to improve the product and consumers’ satisfaction. This way you will also prove to be a reliable company, which is something that customers need the most. Even more – they will enjoy the fact that you listen to them and accept their suggestions. Just like Maria Marinina concluded in her article at Iflexion – shoppers increasingly differentiate retailers by customer experience as they are looking for superb service both during and after a purchase.

  • Online community

The best way to monitor user satisfaction is to keep them all in one place, and the simplest way to do that is to organize an online community. It will cost barely anything to make such a group, while you gather the majority of customers around their subject of interest. This will serve not only to hear their remarks but also to help you involve them in product preparations, design, and features. Internet forums dedicated to your brand probably exist already, but you should create an official online community to show customers that this is the official platform to exchange experiences and give valuable suggestions.

  • Educate buyers

You shouldn’t only educate your staff but buyers as well. Customers are thrilled when you provide them with attention in a non-pushy way. This means that you can allow yourself to kindly advise purchasers about product details, improvements from previous versions, or about the new brand plans and releases. You will strengthen mutual relationships by giving helpful recommendations. By now you must have realized that selling the product is merely the first part of the process, as it takes much more effort to keep the customer coming back. 

  • Promote your values

All brands represent some kind of value and unique philosophy, that’s just how you target consumers and try to attract them. Always bear in mind to promote brand values throughout the entire sales process – from advertising to face-to-face communication with customers. Whenever you create a solid base of loyal consumers, be confident that they share the same type of values as your brand. Aim at their ego and try to emphasize virtues that your customers would like to see in themselves. That’s why your job is to promote brand vision discretely but continuously.


Customer loyalty are the foundation of every successful retail business. With loyal buyers, you get regular sales, while they also require a lot less marketing support. At the same time, they will be the best promoters of your brand. That’s why most companies have increased loyalty budgets – in the US alone, more than 40% of all businesses plan to increase loyalty budgets moderately, while 13% are aiming for significant budget improvement. Loyal customers are the essence of your business, so you need to communicate with them smartly. In this article, we presented the most effective ways to keep your consumers satisfied – put them into action and you will definitely grow your customer loyalty base!

Replies (3)

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By Uyen Ta
20th Jul 2017 03:55

Awesome post.This is useful post for me. Thanks for your shared.
I have a post about Must-Know Tips To Increase Retail Customer Loyalty
If you care you can read at link:

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By JavierAlvares
20th Jul 2017 10:23

Thanks for this informative post. I found many more tips on this site

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Shakeel Digital Marketing Expert
By innotechsol
14th Jun 2019 13:07

Great article. I cover every point of my doubts. I loved this post. 
Thank you so much for this article.

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