10 Proven Ways to Increase Customer Loyalty and Drive Repeat Business

“Loyalty” is one of the strongest words in the English language. It’s a trait that people value in friends, and it’s just as important in business. Every company wants to increase customer loyalty because it's the backbone of a successful business.

Gaining loyal customers is often a slow, organic process that happens by improving your customer experience. However, there are some effective strategies you can use to speed up this process, and build loyalty quickly. 

In this blog, we will explore:

• What is customer loyalty?
• Why it matters more than you think.
• How to increase customer loyalty: 10 proven methods
• How SurveySparrow can help you understand and enhance customer loyalty

What is Customer Loyalty?

Customer loyalty means that a customer prefers to do business with your company over others. This happens because:

• They trust your brand.
• They are satisfied with your products or services.
• They feel an emotional connection with your brand. 

Loyal customers keep coming back, and they’re more likely to recommend your business to others.

Ready to turn your customers into loyal fans? Here's a free Customer Loyalty Questionnaire to help you get started. Click to start using it right away:

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Why Customer Loyalty Matters

Let’s talk about why customer loyalty really matters. Here are nine reasons why:

1. Repeat Business: Loyal customers keep buying from the same business, which leads to steady revenue.
2. Higher Lifetime Value: Over time, loyal customers spend at least 30% more per order than those who only buy once.
3. Lower Marketing Costs: It costs 5 times less to keep a customer than to attract a new one. This also reduces the need to spend more on customer acquisition.
4. Word-of-Mouth Marketing: Satisfied customers often tell their friends and family about your business. This is free and credible advertising.
5. Feedback and Improvement: Loyal customers are more likely to provide honest feedback. This is the only kind of feedback you can rely on for improving your products or services.
6. Price Stability: Loyal customers are usually less sensitive to price changes. This allows businesses to adjust pricing without immediate fear of losing them.
7. Increased Sales: Besides buying often, loyal customers are also more likely to buy extra products or upgrades. For instance, a customer who always buys coffee from a café may also buy pastries or merchandise over time.
8. Revenue Stability: A loyal customer base provides a stable source of income. This shields your business from market fluctuations.
9. Emotional Connection: Building loyalty creates an emotional connection, which can lead to a deeper and more meaningful relationship between the business and the customer.

Given these benefits, finding ways to enhance customer loyalty is your key to long-term success.

How to Increase Customer Loyalty: 10 Proven Methods

#1: Prioritize Customer Service

Quick and friendly customer service is essential. When customers feel valued and heard, they’re more likely to stay loyal. Aim to solve their issues right away—don’t make them wait.

To increase customer loyalty, keep the basics in mind: 

• Keep any promise you make, like a callback or a discount.
• Be courteous. Even a simple gesture of offering water matters.
• Use an online customer feedback tool to track feedback.
• Be genuinely interested in solving their queries.

Calibrate your words, tone and speed as your response can influence the customer’s decision to stick with you. 

💡Pro tip: 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'. 

Read: Top tools to analyze and improve your customer conversations. 

 #2: Ask for 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 the business? Nope!  If businesses were to listen to the voice of customers, not only would they cultivate customer loyalty but also make them more willing to forgive minor goof-ups.

Listen to what your customers have to say. Their feedback can help you improve, and by showing that you care about their opinions, you enhance customer loyalty.

Even a simple phone call or email to ask how they’re doing can make a big difference. Also, don’t overlook any insights you’ve already gathered through customer feedback

💡Pro tip: If you end up making a change or adding a feature based on customer suggestions, give them credit. Also, send them something to show your appreciation. This is one of the best ways to enhance customer loyalty. 

Read: 11 Online Customer Feedback Tools Under $50 + 6 Bonus Tools

#3: Be Reliable

Reliability is one of the simplest ways to increase customer loyalty - and it doesn’t need a budget. Always keep your promises and deliver on time, whether that’s a product, a refill or an answer to a query. 

If something goes wrong, be honest, and fix it quickly.

💡Pro tip: While occasional slip-ups are unavoidable, transparency and empathy can go a long way in keeping the customer’s trust. If you can't fulfill a promise, be open and honest about the reasons, and show an understanding of the customer's situation.

 #4: Focus on the Little Things

Small gestures can have a big impact. For example, in some hotels that I’ve been to, the doorman makes eye contact, and greets everybody with a smile. These service cues can seem unimportant, but they speak volumes about the brand. 

Is this how successful companies retain customers? You bet! It could be as small as offering free delivery to regular customers, adding an extra piece of chicken to the order, or a second refill of drinks for free.

Whether it’s a personalized thank you note or an extra perk, these little things show customers that you care, helping to improve the overall experience. This leads to stronger customer loyalty.

💡Pro tip: Consider providing small, thoughtful amenities to enhance the customer experience. For instance, complimentary snacks, drinks, or small gifts with purchases. These gestures show that you go the extra mile to make them feel appreciated.

 #5: Use User Generated Content

Nothing’s more gratifying for a customer than seeing their content on their favorite brand’s official channels. So use social media monitoring tools to find and share UGC.

Put the limelight on your fans regularly by reposting and sharing what they post. Also, host contests and giveaways to encourage engagement. 

By actively involving your customers and valuing their contributions, you'll create a vibrant and engaged online community. This not only boosts customer loyalty but also drives word-of-mouth marketing.

💡Pro tip: Create a dedicated UGC section on your website. You can use this to feature customer reviews and testimonials. This is great social proof for attracting potential customers. 

Waiting for the reviews to come in? Start with SurveySparrow today and watch them skyrocket!

#6: Be Honest

It might seem obvious, but customers expect you to be honest and upfront. It's like being a friend - if you mess up, you apologize and make it right. Even if it costs you a little, being honest shows you care.

Think about this: 64% of customers choose brands that share their values. So if (or when) you commit a customer experience mistake, then own up to it. Apologize, and work on rectifying it. 

For example, 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.

💡Pro tip: Use role-playing exercises to practice handling difficult customer situations. This can prepare you to handle real-world challenges and maintain a positive customer experience.

 #7: Show Gratitude

It's easy to forget how much a simple 'thank you' can mean to customers. And in most cases, you might send a quick email. But consider giving them a call - especially if they are a high-value client. 

This extra effort shows that you value their business and appreciate their support. In fact, 66% of consumers will switch brands if they feel treated as just a number

By expressing your gratitude, you're not just saying 'thank you'. You're investing in long-term customer loyalty.

💡Pro tip: Customer relationship management (CRM) software don't just manage customer interactions. They're also great tools for sending personalized thank-you messages. This can help you automate the process while personally acknowledging customers at the same time.

 #8: Send Them Gifts

If your customers love your products, why not show them that you care about what they like? A great way to do this is by checking out their social media to see their interests. If it's something you can afford, send them a gift! 

This is one of the best ways to increase customer loyalty because it shows you're paying attention. Plus, when people get something they’ve been wanting, they’ll likely share it with their friends, family, and on social media. Big time attention!

💡Pro tip: Before sending a gift, do a little research to make sure it’s something they actually want. By giving your customers something they’ve been eyeing, you're almost guaranteed to make them even more loyal. 

 #9: Don’t Automate Everything

This one’s important—many businesses are trying to replace every human interaction with automated systems like chatbots. Sure, chatbots are helpful. But they don’t always get it right when it comes to customer service.

People prefer talking to other people, especially when they're stuck or confused. So, it’s smart to keep humans around for moments when customers really need help. Hearing a human voice builds trust because people can relate to each other better than a bot ever could.

💡Pro tip: Most customers will only reach out to a customer service representative after they've tried FAQs, guides, or other resources and still need help. So always have a real person available to solve their problems. A human touch can make all the difference!

#10. Train for Emotional Intelligence

Emotional Intelligence (EI) is about understanding and managing emotions—both your own and your customers'. So it plays a big role in building loyalty.

Employees with high EI can read and respond to customer emotions better, offering more personalized service. When customers feel truly understood, they’re more likely to stay loyal to your brand.

By teaching your team EI, you’re adding a powerful tool—one that deepens customer relationships.

💡Pro tip: You can train your team in EI through role-playing exercises and feedback. Practicing how to handle tricky situations helps them learn how to manage their emotions, and respond with empathy.

How to Understand and Enhance Customer Loyalty with SurveySparrow

Customer loyalty is key to success. But finding the right tool to measure and boost it is just as important.  Let me introduce you to SurveySparrow, a platform designed to help you take control of customer loyalty.

Why Choose SurveySparrow to Measure Customer Loyalty? 

• AI-Powered Survey Maker: Our AI-driven survey maker helps you create surveys in no time. Just provide a few details, and our AI generates the perfect survey.
• NPS Survey Software: Measure customer satisfaction and loyalty with our powerful NPS (Net Promoter Score) software. Track how likely customers are to recommend your brand.
• Multilingual Surveys: Want to reach a global audience? No problem! SurveySparrow lets you create surveys in 70+ languages.
• Customizable & Multichannel Distribution: Tailor surveys to match your brand. Share them via email, SMS, or embed them on your website.
• In-depth Analytics & Follow-ups: With our Executive Dashboard, you don’t collect just feedback—you get actionable insights. Plus, automate follow-ups to ensure smooth data collection.

Check out the video below to see SurveySparrow's Executive Dashboard in action. 

Enhancing Customer Loyalty with SurveySparrow

Once you’ve collected feedback, SurveySparrow’s analytics help you:

• Pinpoint customer pain points and solve them fast.
• Discover what loyal customers love and amplify it.
• Personalize loyalty programs based on customer preferences.

In today’s competitive market, understanding and improving customer loyalty can make all the difference. SurveySparrow gives you the tools to measure loyalty and boost it with actionable insights. 

Ready to start implementing these tips? Enter your email below to create your free account.

Wrapping Up

As Fred Reichheld, author of The Loyalty Effect, points out, even a 5% increase in customer retention can boost profits by 25% to 100%. No matter your business, customer retention is the clearest sign of loyalty. That’s why finding and applying ways to enhance loyalty should always be a priority.

These 10 tips are a great starting point, but there’s always room to go further. Some ways will naturally show up on the job.