Did you know that it can cost five times more to recruit a new customer than it does to retain an existing one? Savvy businesses do, and that’s why building customer loyalty is key to their digital marketing strategies.

In a world where the demand for customer loyalty is at an all-time high, how can your business use digital marketing techniques to drive continual engagement and repeat business? Read on for 6 tried-and-tested ways to build customer loyalty through digital marketing.

Reward your most loyal customers

Not surprisingly, three quarters of consumers favor companies that offer rewards, so an incentive-based loyalty program is a no-brainer. Your most devoted customers are likely to contribute around 80% of your overall revenue, and using a reward program (such as a points-based loyalty system that offers rewards when specific milestones are reached) is a great way of incentivizing prospects and ensuring your most loyal customers feel special.

Build a referral network

Often referred to as word-of-mouth marketing, using referrals is an effective (and generally inexpensive) way to earn new customers — and incentivizing referrals is a great way to drive customer loyalty. Take SMARTY, for example: the UK-based mobile network launched its own referral program which offered a free month to both the referrer and a referee every time someone joined up due to a friend’s recommendation.

The SMARTY network now reportedly has over half a million subscribers, and they’re likely to stick around because being loyal (being vocally loyal, to be specific) has clear long-term rewards. To make this tip work for you, take the previous tip about rewarding your longest-serving customers and overlap that scheme with a referral drive. In other words, make your customers optimally happy, then seize the moment to have that happiness spark further conversions. It isn’t easy, but it’s hugely productive.

When creating a referral network, remember how important it is to have an up-to-date contact list of the people you want to add to it. Your client list must have contact information, including email addresses, that is valid, otherwise, you may not get the results you expect. Check your client contact list regularly — this will avoid wasteful spending. Find the best email checker that will validate quickly and easily, based on your business needs. By maintaining a clean list, you minimize the risk of your emails being marked as spam, thus preserving your sender’s reputation and improving overall email deliverability.

Personalize your content

A 2021 report by McKinsey found that a whopping 71% of consumers expect companies to deliver personalized interactions. Personalized experiences help to optimize customer retention because they’re dynamic and, most importantly, relevant. You could use a solution like Personyze, a comprehensive personalization tool that uses machine learning and behavioral targeting to deliver tailored experiences. 

Embrace regional targeting

If you’re going to win loyalty through customer service, you need to know what makes your customers tick — and we’re all products of our environments, so one of the best ways to get better at keeping customers happy is to learn more about their cities, regions, or even countries (e-commerce is increasingly global, after all). Here are three tactics to try:

• Find business partners. Some companies are fundamentally compatible: a small bakery, for instance, can easily team up with a supermarket for mutual benefit. HubSpot lists some great success stories. Look for businesses in your target markets that might want to partner with you. Their customer knowledge (not to mention their services and/or products) could help you massively improve your customer service.
• Focus on local SEO. To truly connect with your local audience and enhance customer loyalty, an essential strategy is to create a local SEO strategy. Consumers often want to support local businesses, so tailor your content to match what your local audience is looking for and capture their attention.
• Run some surveys. There are plenty of great survey companies out there that can help you learn more about regional preferences. Find one that can conduct market research in your required area, and run some incentivized surveys to see what people have to say — then use that information to inform your strategy.

Lean on your brand values

Since 89% of consumers stay loyal to brands that share their values, they should inform every part of your marketing strategy. And with consumers more concerned than ever with corporate social responsibility, it’s your values that can differentiate yours from other brands and have an increasing influence on consumer decisions. Your values (be they social, environmental, or otherwise) should permeate throughout your digital marketing channels, from your social media posts to your email marketing campaigns.

Leverage user-generated content

Another great way of building loyalty is to let your customers generate your content for you. It shows your community that many people already trust your brand and love your products. In fact, 85% of consumers find visual UGC more influential than content produced by brands. With a tool like Productsup, you can incorporate shoppable Instagram posts, allowing your customers to make purchases directly through their social channels. 

Incorporate these 6 elements into your digital marketing strategy and your casual visitors could become devoted brand ambassadors in no time.