#SWAAYthenarrative
BETA
Close

How Can a Brand Build a Loyal Customer Base?

Sponsored

For every single sector of the market, no matter how niche or broad, there are dozens of competitors. So, especially for newer businesses, it can be difficult to build a base of loyal customers. The trick to increasing customer loyalty is to understand your target market and find out what would make them choose you over your similar competitors. But having a strong product offering just isn't enough. Businesses actively need to be finding ways to build relationships with customers so that they remain loyal, become positive spokespeople for the brand, and are ready to hear about the future of the company.


Targeting New Customers

Before you have any customers to become loyal, you need to go out and get them. Rewards for new customers are a quick win for businesses to attract new customers for an initial point in time to generate some quick sales. These customers might not be convinced to remain once their new customer offer expires, but by then they'll reach out to another crop of new customers, keeping the cycle alive.

Phone contracts and TV/internet packages are famous for reaching out to new customers with deals that their current customers baulk at. UK TV providers Sky and Virgin both have strong competing offers for new customers who are looking to sign up to the TV packages. Gyms are also famous for appealing to those who aren't members. All three are difficult to get out of once the cooling off period is over, so keep customers due to the hassle it would take for them to transfer.

Rewarding Long-term Customers

Long-term customer rewards are also important. While new customer offers work to entice people to use the brand initially, keeping their engagement throughout is also critical in creating a long-lasting relationship. By rewarding customers who have stayed with the brand loyally over a period of time, the relationship can further be forged.

Long-term customer rewards are also important. While new customer offers work to entice people to use the brand initially, keeping their engagement throughout is also critical in creating a long-lasting relationship. By rewarding customers who have stayed with the brand loyally over a period of time, the relationship can further be forged.

Slotsjudge rewards, for example, include a points system that benefits gamers not for playing the games, but for being active in the gaming community. Points can be won for publishing blog posts, answering queries, registering accounts and referring friends. The loyalty comes not in the way of the points, but in the building up of a real community atmosphere, which will create a more conducive environment.

Rewarding Big Spenders

Supermarkets use loyalty cards that give points for purchases, which can be redeemed later for treats, or money-off shopping. The more you spend there, the more points you get and potential for rewards. But, occasionally, they also give vouchers for a specified amount off the next shop. They understand that the target market wants bargains, and offering just 15% off the next shopping bill would be enough to increase repeated custom. The supermarket, in the mind of the customer, will have the reputation for being customer-friendly and good value, as well as trying to help out their customer base. People would be more likely to go to a supermarket they have a loyalty card for than one they don't.

Developing Brand Ambassadors

Another trick to increasing customer loyalty is by creating ambassadors for the brand of your customers. One way to do this is through discounts for referring friends.

Not only will the current customer become a beacon for your brand and signal the benefits of your brand and products through word of mouth marketing, which has a high conversion rate.

But they will also encourage their friends, who may then do the same. By feeling like part of the club by gaining benefits for themselves, they will be more likely to speak and act favourably to the business.

Rewarding Impulse Purchasers

The technology used to shop online is beneficial for companies to find which of their customers are more inclined to buy what they have had in their baskets or what they have been looking at. So sending emails with those products could result in sales. Basket abandonment is also something brands take into account in order to ensure customers are loyal, by occasionally offering incentives to make immediate purchases to those people who have placed something in their e-shop basket but not bought it. This creates a connection between the brand and the customer as the customer perceives the brand to be giving them something extra. But, it is all factored into sales targets and profit margins.

Consistent Communication

Building customer loyalty is difficult, and even though there are a number of tricks available in your arsenal to do it, many are reluctant to appear to be shaving so much money off their products all the time. There's a fine line between happily appeasing customers and ensuring your business doesn't look like there's always a sale on and that you are making a decent enough profit.

Finding the customer loyalty programmes that work to ensure you succeed in business and keep customers happy is the key to any successful business.
Our newsletter that womansplains the week
Editors picks

Looking for Funding? SoGal's Second Annual Competition Is Now Accepting Applications

If you are a woman, a person of color or LGBTIA+ identified and are a part of a start-up company, this is the competition for you. The SoGal Global Pitch Competition is being hosted in over 25 cities and will culminate in a final contest in Silicon Valley as well as a "3-day immersive educational bootcamp." This could be an unprecedented opportunity for you, your business and for the future of entrepreneurial diversification.


We all know how important diversity is for the world and for any business entity. But the statistics need to catch up with these ideals, because diversity isn't just a moral imperative it can also have an impact on the success and efficiency of a business. So if the ethics isn't enough to get you interested, maybe these statistics will.

  • Companies in the top quartile for ethnic and racial diversity are 35% more likely to have above-average financial returns
  • Companies in the top quartile for gender diversity are 15% more likely to have above-average financial returns
  • Bottom quartile companies (in both gender and racial diversity) are less likely to achieve even average returns
  • In senior executive teams in the US for every 10% increase in racial and ethnic diversity EBIT (earnings before interest and tax) rose 0.8%

Despite the fact that diversity is good for business, funding as a woman or a minority is incredibly challenging, but this competition could be someone's game-changing opportunity.

SoGal is a global education and empowerment platform focused on diverse investors and entrepreneurs. Their mission is "to close the diversity gap in entrepreneurship and venture capital." A tall order, given that 2.2% of VC funding went to women in 2018. Compounding the gender gap with race shows an even poorer picture: in the past decade only 0.1% (yes, that is a decimal) of funding was allocated to black women.

It is a straight up fact that companies with higher levels of diversity perform better, so why is it so hard for diverse start-ups to get funded? Oh right, racism, sexism, homophobia, implicit biases, inequality, classism... the list goes on, but thankfully that's where SoGal comes in! According to Kelley Elizabeth Henry, director of SoGal, "We're done waiting for these statistics to change; we're taking action to point investment capital toward these diverse-led startups. [...] We will change the future of entrepreneurship."

To enter this competition all you have to do is be a part of a pre-Series A startup (raised less than $3M) and have at least one "woman or diverse" founder. After you apply to pitch, you'll have to be able to make it to one of the "regional round location," which range from the more typical options of New York and Los Angeles to global locations such as Nairobi or Bangalore. And, if you're really playing to win, you better earmark February 28 to March 1 of next year, because that's when the top teams will be in San Francisco duking it out to the very end. And by "duking it out," I mean participating in "curated educational programming," talking to press and getting "facetime in front of top-tier investors." Though not everyone can win, the experience in itself looks to be well-worth the time it takes to fill out an application form and huff it to the nearest large city for the first round.