How to build loyalty with impeccable customer service: 5 tips for Shopify merchants
What does customer loyalty mean for your business?
For most ecommerce stores, customer retention is an important metric to stay on top of. It’s widely known that it’s much easier and more cost effective to retain the customers you already have, rather than constantly marketing for more.
When people know you and feel loyal to your business, this can be a huge competitive advantage. 81% of consumers say they want to form a relationship with a brand. They want to feel like their loyalty and purchases matter, and once that relationship is formed, they tend to stick around as long as the business continues their impeccable service.
The question is, how will you deliver that impeccable service? What can you do to stand above the competition and drive customer loyalty? Shopify merchants, we have some tips for you…
Customer loyalty: The stats
In the competitive world of retail, around 39% of consumers are considered to be loyal customers, and 52% go out of their way to purchase from brands they are loyal to.
That’s why 73% of companies focus more on current customers than on developing new markets. It costs brands around five times more to find new customers than to keep their current customers.
On average, 65% of a brand’s sales come from repeat customers, yet retaining those customers is often where the challenge lies for ecommerce merchants. Online retail has an average churn rate of 22%, while 50% of customers will switch to a competitor after one bad product or customer service experience.
The key for Shopify merchants is to deliver an experience that helps to grow your relationship with the customer and foster loyalty. While you probably always strive for perfection, you’ll inevitably experience bumps in the road from time to time. The secret is in how you deal with those. 68% of US shoppers have recommended a brand to others due to a good experience, and the great news is that you can turn almost any customer interaction into a good experience.
Tips for building customer loyalty
As a Shopify merchant, you’re set up on a reliable platform that offers you a great foundation to build a thriving business. You can use these tips and tools to grow customer loyalty and continue to thrive:
#1. Connect with your customers
Humans thrive on relationships, and in the end, it is a relationship that you share with your loyal customers about your mission and products. Your products are important, with 74% of customers loyal to brands due to product quality, but human connection is another important factor that sets you apart.
Product quality won’t always be enough, especially as this is something that competitors can easily copy. One thing you can differentiate on is how you build connections with your customers. In fact, 75% of Americans say they’re more likely to be loyal to brands that understand them on a personal level.
Some of the most successful ecommerce brands have built thriving communities around their products and customers’ experiences. Instant Pot is one example of great community building. They started out as a grassroots team in 2010 and grew a cult-like following thanks to their great product innovation and ability to connect with their customers. They have a plethora of user-generated content from reviews to recipe swaps.
Social media, email, and other communication channels offer merchants the opportunity to connect with customers where they are. For example, you can engage with content where your brand is tagged, or, you can use your social media or other channels to respond to customers. One thing Instant Pot has done well is generating excitement so that customers want to belong to their wider community.
How can you build community and connections? Some ideas for Shopify merchants include:
Build an email list and send out regular, interesting emails. Tools such as Mailchimp are great to get anyone started and have integration with Shopify.
Stay engaged with your social media channels. Shopify Inbox allows you to live chat with customers across your social media channels from your admin panel. Sprout Social integrates with Shopify and allows you to manage social media content and messaging from one place.
#2. Implement a loyalty program
Customer loyalty programs are worthwhile for ecommerce brands. Over 75% of US adults participate in brand loyalty programs and many of those will choose to shop with a brand based on being part of their loyalty program.
Loyalty programs give you the opportunity to offer customers something they value in return for their business. These programs help to communicate that you value their business and want them to keep coming back. You can use loyalty programs as a mechanism to surprise and delight customers, too. Almost 40% of customers want offers that are tailored to their own preferences, and your loyalty program can be used to do this.
Some type of loyalty programs include:
Points programs, where you earn points on every purchase and then trade those, either for a discount or for certain products.
Tiered rewards programs. This is where the most loyal customers get better rewards. The more they shop with you, the higher they climb in the rewards tiers. For example, Expedia Gold reward members get higher discounts and more perks for accommodation.
Cash rewards. Some programs operate by sending members a check or gift card when they earn rewards above a certain level.
Shopify merchants can find many options for setting up a loyalty program within the Shopify app store.
#3. Be known for your impeccable customer service
Your customer service can truly be a differentiator for your business. This includes getting the bare basics right. 80% of customers believe that speed, friendly service, convenience, and support are the most critical factors to having a good experience with a company. Furthermore, 80% are willing to spend more for a better customer experience. The cheapest competitor doesn’t always win!
Part of offering impeccable service means having options so that customers can get help quickly. This can include self-service options - 40% of customers prefer self-service options over human contact. Those might include knowledge bases where they can find answers, AI chatbots that quickly answer questions or even the ability to self-edit orders after they have placed them.
Shopify merchants should consider Cleverific Order Editor for helping customers quickly make simple changes to their orders themselves via Customer Portal. On the merchant side, the app can also be used in the back end by your customer support team, allowing them to make changes based on customer requests.
Cleverific Order Editor has a 14-day free trial. Give it a try and see how it can improve your customer experience.
In the spirit of speed and convenience, there are some other great customer service tools that are set up for Shopify. Chat apps such as Tidio, and CRM solutions such as eDesk can help you with the delivery of a superior customer experience.
Looking for top customer service apps for Shopify? Check out this post.
#4. Respond to reviews and listen to feedback
Many merchants feel a little nervous about responding to reviews, especially if the review in question is negative, or has feedback suggesting how you can improve. However, if you want to be known for amazing customer service, you need to engage with reviews.
57% of consumers will stop shopping with a brand if the company has a negative review that they fail to address. People are looking to see how you respond to reviews. A negative review won’t necessarily turn them away unless they see you ignoring it or responding inappropriately (hint: be empathetic and avoid blaming or excuses!).
Besides addressing negative reviews, engaging with all of your reviews can be an opportunity to demonstrate your customer service skills. Imagine browsing through the reviews of a brand you’re thinking of shopping with when you spot feedback or suggestions for the company. When you see the company thanking the customer and letting them know how they’re implementing a change or ensuring that an improvement is made, it immediately tells you that the company listens and cares about its customers.
Shopify merchants should check out review apps such as Judge.me, which includes a Google Shopping integration.
#5. Communicate and demonstrate your values
Consider which aspects of your brand are worthy of your customer’s loyalty. Almost 85% of consumers are more likely to be loyal to a brand that they share values with. Importantly, it’s not just about talking up those values, it’s about the actions you take to demonstrate them.
Occasionally, demonstrating your values might include taking a stand for something. This doesn’t mean that you must be political, especially if this doesn’t otherwise gel with your values. One example is REI which has closed its stores on Black Friday for the last few years, instead encouraging its staff to spend time with family outdoors. On the busiest retail day of the year, the company opts to forego sales and live up to its values.
Importantly, you should always be demonstrating your values in the way you deliver customer service. Many brands espouse values that they don’t really live out. Customers are quick to notice this. Brand values should be a guiding light for your service delivery.
Shopify merchants may want to check out the various blogging tools available which can help you to communicate your values to the world.
Grow loyal customers with your customer service
Well, Shopify merchants, there is a lot you can do to demonstrate your customer service and grow loyalty among your customers. We’ve scratched the surface here, but the five strategies outlined can provide you with a solid foundation.
Your customer service can differentiate your brand from competitors. You don’t have to be the cheapest, but you should aim to provide a level of service that customers are willing to pay extra for.
What will you implement first?
