How To Develop Customer Loyalty: 5 Ways To Earn More Repeat Buyers

How To Develop Customer Loyalty

iPhones cost more than most other phones on the market. You still buy it. Starbucks charges more than other brands. You still need it on your way to work. But why?

What is it that transcends our worries about our bank balance and directs us to that same expensive product again and again?

Customer Loyalty.

Introduction to Customer Loyalty

Customer loyalty may be defined as the act of choosing a particular company over its competitors consistently for a specific product or range of products. A loyal customer is not deterred by either a price hike or an issue in availability.

The company has satisfied them time and again with their products and service and even exceeded expectations. But, you see, the onus of creating and maintaining customer loyalty lies on the company’s shoulders.

As a brand, you must invest in quality products and customer service to make customers choose you above all others.

Today, Apple has crossed $2 trillion in valuation and a significant reason for that? Customer Loyalty. They have understood the real trick of the trade- keep the consumer happy and wanting for more. And in keeping with that, invest heavily in customer satisfaction.

But customer loyalty is a sure-shot way of succeeding in your business venture.

Let’s take a deep dive into why customer loyalty is so important:

Importance of customer loyalty

In a nutshell, it impacts sales and revenue.

Firstly, it leads to better profits. How? Marketing spend on a new customer is 5x that of a repeat customer; thus, the loyal ones are better for profits.

Also, trends and analytics have proved that even a meager 5% increase in customer retention may lead to a whopping 40-95% profit.

Secondly, loyal customers lead to referrals and recommendations. The oldest tenet of marketing and the strongest one- word-of-mouth marketing. So what does it cost you if a customer refers someone to you? Zilch. That’s how powerful customer loyalty can be.

However, to give this a boost, most B2B companies have referral programs where you are rewarded every time a reference of yours purchases a product. Dropbox grew a massive 3900% in 15 months using this brilliant strategy.

How do you measure customer loyalty?

There are quite a few ways to measure customer loyalty, but here we’ll list the top 5 used by companies regularly:

1. Customer Lifetime Value

It is measured by adding up all the customer’s purchases between the first purchase and last purchase/calculation and then subtracting the cost per acquisition from it. This is undoubtedly the most important factor measured by most companies.

2. Visit Frequency

To get a more rudimentary view of how loyal your customers are, check how often they visit the store and how often they purchase from it.

3. Recency

Your spend per customer may be shooting through the roof, and your visit frequency may also be high. Still, if the customer last visited you 3 years back, then you should have a look at where you may be failing him or her.

Recency is a powerful tool to keep a measure of customer loyalty. Dropping recency can give you the jolt you need to work on customer satisfaction.

4. Spend-per transaction

The amount of purchase during each transaction. Falling spend per transaction could be a subtle hint that your customer is checking out competitors. So sit up and review your products/service.

5. Retention Rate

Also known as Customer Churn Rate, this is another critical measure of customer loyalty.

It is measured by:

(Customers at the end of the period - New customers during this period) / Total customers at the beginning of the period) x 100

5 Tips To Build Solid Customer Loyalty

As we said right at the beginning, IT’S ON YOU. You have to make your product seem irresistible for the customers. They should feel like only you can give them the best experience.

So here are a few secrets you should try out!

1. Excellent customer experience

This is a no-brainer. Make them feel special. In fact, many customers keep coming back simply because they received excellent service!

In fact, they won’t mind splurging a few more bucks if you make them feel like royalty!

2. Loyalty Rewards

Give them the incentive to keep coming back. Keep thanking them with wild offers- 50% off, Buy One Get One free. Or surprise repeat customers with something at the checkout counter!

3. Events and Anniversaries

Make them feel like a part of your family, a part of your success. Celebrate the years they have been loyal to you- anniversaries. And give them special offers on those days.

Like- “Thank you for supporting us for over 10 years. A tiny gift from us- $100 off on your next purchase.”

4. Find your niche audience

Target only your niche audience while marketing. Marketing for all is a waste of budget! Reaching out to only your target audience will create a spike in customer loyalty.

5. Check-in on them

Call them. Send them a survey. Write an email.

Ask them if they are happy and satisfied. Try creating a personalized experience for them. There is a good chance they will come back to you!


Customer retention is an investment no brand has regretted. Ever. And nor will you. Of course, you create a budget for new customers. But like we said, the older ones are the profit makers. Chase them, pamper them, keep them happy! Use our tricks- they’re bound to bring in results.


Customer retention for your website or e-commerce store can be quite tricky. A plethora of analytics and tools would be required, and you will have to track down customers and their purchases from all corners of the web.

Let us help you. We’ve been doing this for a while.

Drop an email or give us a call, and Seattle New Media will be right on it!


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Editorial Team