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9 Proven Ways to Boost Customer Loyalty and Retention

Mathew Maniyamkott

Last Updated:  

30 May 2024

11 min read

Loyalty is one of the strongest words in the English language with deep-seated meaning, and every company worth its salt is looking for ways to increase customer loyalty.

In fact, in a 2013 survey where Americans aged 16 and above participated, 81 percent of the respondents stated that the most important trait they expected in a good friend was loyalty. A word that even prompted sicarios from the mean mafia moves to kill someone in cold blood. In fact, loyalty is the underlying theme for such movies, including Francis Ford Coppola’s magnum opus, ‘The Godfather’.

What’s so special about loyalty in a customer, you’d ask? A customer becomes loyal when it is evident that you care about improving your customer experience over a period of time. Loyalty is never given on a whim; it is supposed to be earned, which is what makes loyalty an important outcome in a business relationship. Customers being loyal to your business is a proof of you doing a lot of things right. While getting loyal customers can be an organic process, it is imperative that companies work on finding ways to increase customer loyalty.

When we delve into the language of business, how would you define customer loyalty?

What is Customer Loyalty?

Customer loyalty refers to the likelihood of a customer choosing to repeatedly do business with a company or brand, rather than turning to a competitor. It stems from a customer’s satisfaction with a product or service, trust in the brand, and an emotional connection or positive experience with the company. Over time, this repeated patronage increases sales and referrals, making customer loyalty highly valuable for businesses.

Why is Customer Loyalty Important?

Customer loyalty is important for several reasons:

  1. Repeat Business: Loyal customers tend to buy from the same business or brand over and over again, leading to consistent revenue.
  2. Higher Lifetime Value: Over time, a loyal customer can generate more revenue than several one-time buyers combined.
  3. Lower Marketing Costs: Acquiring a new customer is often more expensive than retaining an existing one. Loyal customers can reduce the need to spend heavily on customer acquisition.
  4. Word-of-Mouth Marketing: Satisfied and loyal customers often recommend the brand to friends and family, providing free and credible advertising.
  5. Feedback and Improvement: Loyal customers are likelier to provide honest feedback, which can be invaluable for improving products or services.
  6. Resilience to Price Changes: Loyal customers are often less sensitive to price changes, allowing businesses to adjust pricing without immediate fear of losing them.
  7. Increased Sales: Besides buying frequently, loyal customers are more likely to purchase ancillary products or higher-priced premium versions.
  8. Stability in Revenue: A strong base of loyal customers can provide a more predictable and stable revenue stream, insulating businesses from market fluctuations.
  9. Emotional Connection: Building loyalty often means establishing an emotional connection, which can lead to a deeper and more meaningful relationship between the business and the customer.

Given these benefits, nurturing customer loyalty can play a pivotal role in a company’s long-term growth and sustainability.

 9 Fool-Proof Ways to Increase Customer Loyalty

 #1: Make Customer Service a Priority

Ways to increase customer loyalty-24 and 48-hour response times for an email is a thing of the past. Be instant!

The way you respond to a customer is extremely important as the words, tone, and speed with which you solve their query will be observed and judged by the customers and use it to evaluate if you are worth sticking to. A customer evaluates every single interaction they have with your brand and if they don’t feel good after purchasing something from you, the chances of them coming back are as good as zero. Although there are many ways to increase customer loyalty, keeping the basics in mind is important.

You prioritize your customers by concentrating on the simple things. It is as simple as keeping a promise like a callback or even a simple gesture of offering water when someone enters your establishment or being genuinely interested in solving their queries. 24 and 48-hour response times for an email are a thing of the past because customers expect to get their queries solved immediately.

If your goal is to find ways to increase customer loyalty, then your customer service representatives should be able to clear the queries immediately. Simple things like being friendly and treating customers kindly are surely a way to increase customer loyalty.

 #2: Ask for Customer’s Advice

How many times have we seen a business reply rudely to a review on a social media platform? Has it ever ended well for a business? No. The scathing replies by business owners became viral, and a lot of customers vowed to boycott the establishment.

It hurts the image of the business permanently, and it repels customers, certainly not an act that you would do if you were finding ways to increase customer loyalty. But if businesses were to listen to the voice of customers, not only are they standing to gain their affection, but they would be willing to forgive if you were to goof up. While finding ways to increase customer loyalty, do not hesitate to work on the customer feedback you’ve already collected.

Picking up the phone and listening to what the customer has to say is one of the best ways to increase customer loyalty. You don’t have to wait for an interaction to ask them if they like your service. Even if there are months of zero activity, do reach out to your customer with an offer to start using your product or to say a plain hello. Even though there are many ways to increase customer loyalty, you should realize that loyalty is as much a habit as an innate trait.

If you end up making a change or adding a feature based on the suggestions of the customers, make sure to credit them. Also, send them something to show your appreciation; you can expect them to be loyal for eons; this is one of the best ways to increase customer loyalty. Use online customer feedback surveys and polls and monitoring your performance is a great way of doing it.

#3: Be Reliable

Ways to increase customer loyalty- Respect for your brand grows higher when you take each commitment seriously.

Being reliable is one of the most straightforward ways to increase customer loyalty. Being reliable doesn’t require a marketing budget, but it does involve efforts and a sincere mind to help your customer no matter what. Being reliable is as simple as staying true to what you promised, delivering the product on time, asking if the customer wants refills, clearing the customer query on time, and so on, which is easily one of the best ways to increase customer loyalty.

While good marketing spends can go a long way in acquiring customers, the only way to increase customer loyalty is to keep the ones who are already customers happy.  Respect for your brand grows higher when you take each commitment seriously. The inability to deliver on promises can be forgiven if there are valid reasons and you are empathetic to the customer’s cause. We can’t help but reiterate the fact that being reliable is one of the best ways to increase customer loyalty.

 #4: Concentrate on the Little Things

If you care to observe how successful companies retain customers, you will find that they even concentrate on the smallest of activities that make the customers happy. It could be as small as sending a personalized and hand-written thank you letter to a high-ticket client, offering free delivery to regular customers, adding an extra piece of chicken to the order, or a second refill of drinks for free, and so on.

The littlest things are often overlooked, but those are the ones that create a huge impact because most businesses do not care about them even though they are one of the best ways to increase customer loyalty. When you are looking for ways to increase customer loyalty, you tend to invest in as many avenues as possible to please and keep the customer satisfied.

Ways to increase customer loyalty- The littlest things can bring in the most positive impact in customer experience.

While a customer retention strategy is not exactly similar to strategizing ways to increase customer loyalty, the final outcome for both of these is the same. Adding a little extra to your product/service, giving your customers sample products, offering them guarantees on the product and more is a perfectly crafted way to increase customer loyalty.

 #5: Use User Generated Content Extensively

Nothing is as gratifying for a customer as seeing their content on their favorite brand’s official social media handle or getting a shout-out there. It is a sign of how much you appreciate their support and encouragement; not only can you use their posts where they have mentioned your brand and bolster them to do more. When the customers notice that your brand follows whenever they are mentioned and try to share them, they will go out of their way to make your brand a priority.

Put the limelight on your fans regularly by reposting and sharing what they post. Engage with your fans on the posts with regular contests, and create a buzz around your products by giving away a few products to the ones who engage the most. The more you share with your customers, the more you will spiral into a movement where there is a lot more engagement.

#6: Never Underestimate the Power of Honesty

It should not surprise you that your customers only have the basest of expectations from you. Virtues such as honesty never go out of style. Being honest with your customers is an easy way to increase customer loyalty. If you ever commit a customer experience mistake, then own up to it. Apologize and work on rectifying it, thus improving the ways to increase customer loyalty.

If being honest means losing a little business, that is all right as long as you are doing the right thing and your customers will value and respect your brand for that. The very gesture that you place the customer above improving your bottom line will go a long way in increasing customer loyalty. If a customer asks you for a particular product and you don’t have it stocked, don’t hesitate to direct them to your competitor. It will have a huge impact on the customer as such honesty is more of an aberration than the norm these days.

Only engage in activities that show that you are transparent. While taking the easy route is always ‘easy,’ it is fraught with ways that are not entirely honest and do not lose the goodwill of your customer for anything. Always remember this statistic when interacting with your customers, 64% of customers cited that shared values are the primary reason for a strong brand relationship.

 #7: Be Grateful. Say ‘Thank you’!

Ways to increase customer loyalty-Demonstrating how grateful you are will remind them about you and keep you in their good books too.

Sometimes, customers don’t know how much you appreciate them, and the kind of difference their association and support means for you. It behooves a well-meaning business to show its customers how important they are to the growth of the company. Send an email after each transaction, or even better, pick up the phone and call them. Showing your gratefulness regularly will remind them about you and keep you in their good books too. Remember that those loyal customers are the lifeline of any business, and saying a big fat ‘thank you’ is a sure-shot way to increase customer loyalty.

Finding ways to increase customer loyalty is not much of a dampener when you realize that more than 68% of customers leave brands when they are upset with the treatment they received. Only real appreciation will please your customers and is certainly one of the easiest ways to increase customer loyalty because everyone likes to be appreciated.

 #8: Send Them Gifts

If you have customers who are a big fan of your products, then isn’t it right that you take an interest in what they like? Check out what your biggest fans like through their activities on social media; if it is something that you can afford, try gifting them. When you send something they really love, it creates a huge impact on them. Among the many ways to increase customer loyalty that we have suggested, taking note of the likes of your customers and gifting them something that they plan to buy is the most special of gestures, as it shows that you care.

Not only will they talk about it amongst their friends and family, but they will also widely share it on their social media accounts, which will help you grab a lot of eyeballs. Do a little research before you plan to gift something. Sending your customers things that they have been wishing to buy is a foolproof way to increase customer loyalty.

 #9: Don’t Automate Everything

Ways to increase customer loyalty-Human interactions foster loyalty as people understand each other better.

This needs to be said because a lot of businesses are trying to automate each interaction which happened earlier between a CS executive and the customer. Sure, easy-to-make chatbots are the next biggest creation in the world of customer service, but it has its flaws when communicating with customers. Automate judiciously! People always prefer talking to other people to get their queries solved.

Choose humans for interactions with the customers at junctures which can be a little difficult for the average customer to understand and follow. Human interactions foster loyalty as people understand each other better. Customers are happy to listen to a human voice on the other end instead of having to talk to a bot that has a standard set of responses not specific to the issue at hand.

One more point to note is that most people want to talk to a CS executive only when they have exhausted all sources of information points, like FAQs, guides, white papers, etc, where their problems went unsolved. This is why keeping a human being to care for the needs will help the customer.

Understanding and Enhancing Customer Loyalty with SurveySparrow

While understanding the importance of customer loyalty is essential, finding the right tool to measure and enhance it is equally crucial. Let me introduce you to SurveySparrow, a game-changing platform for this purpose.

ways to increase customer loyalty

Why Choose SurveySparrow to Measure Customer Loyalty?

  1. User-Friendly Interface: SurveySparrow offers an intuitive design that makes it easy for both businesses and customers to use. This ensures high response rates and accurate feedback.
  2. Customizable Surveys: Tailor your surveys to fit your brand and target audience, ensuring relevant data collection.
  3. In-depth Analytics: Beyond mere feedback collection, SurveySparrow provides in-depth analytics. This helps businesses understand their performance and identify areas needing improvement.
  4. Multichannel Distribution: Whether you want to send your survey via email, SMS, or embed it on a website, SurveySparrow has got you covered. Reach your customers wherever they are.
  5. Automated Follow-ups: Missed out on a response? Set up automated reminders to gently nudge participants, ensuring maximum feedback collection.

Enhancing Customer Loyalty with SurveySparrow

Once you’ve gauged your customer loyalty, it’s time to take steps to enhance it. With the insights gained from SurveySparrow’s analytics, you can:

  • Identify pain points and address them swiftly.
  • Understand what your loyal customers love and double down on it.
  • Craft personalized marketing and loyalty programs based on customer preferences.

In today’s competitive market, customer loyalty can be a make-or-break factor for businesses. With SurveySparrow, not only can you measure it effectively, but you also get actionable insights to enhance it consistently.

Choose SurveySparrow, and take the first step towards building a more loyal and engaged customer base.


These 9 ways to increase customer loyalty are more than enough, but to let no stone be kept unturned, you can still find ways to keep your clients loyal. Some of those ways will come accidentally when you are talking to your customers, collecting customer feedback, and serving them wholeheartedly. Treat every day like a day where you can keep a customer happy. Set yourself apart from your competitors by always giving that extra which will never fail to charm your customers. More than anything else, listen to your customers often. Use customer feedback tools to hear them out, periodically. Gauge their loyalty, take corrective actions wherever needed.

Fred Reichheld, the author of ‘The Loyalty Effect,’ says in his book that even a 5% increase in customer retention can lead to a 25% to 100% increase in profits for your company. Regardless of the kind of company or business you run, customer retention rate is the best indicator of how happy your customers are and whether they will stick with you or not. This is why you need to find ways to increase customer loyalty and implement them on a war footing.

Mathew Maniyamkott

Guest Blogger at SurveySparrow

Regular contributor to various magazines. Passionate about entrepreneurship, startups, marketing, and productivity.

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