Reasons Why Customer Loyalty is Decreasing & What Brands Can Do About It?

eCommerce Marketing

Reasons Why Customer Loyalty is Decreasing & What Brands Can Do About It?

Brand loyalty refers to a term where consumers are attached to a particular product or brand. Loyal customers are dedicated to a product or service- revealed by their repeat purchases despite the competitor’s efforts to tempt them away. For a successful and long-term business, customer loyalty is essential. You can gain new customers by applying different strategies, but keeping the existing customers loyal to your brand is tricky.

Despite being the top brand, a loyal customer base can vanish within twelve months. Meanwhile, some customers will stick to the brand as long as they have an emotional attachment. Studies show that customers are willing to commit to the brand for more than five years if they feel that the brand is adding value to society.

Let’s learn why customer loyalty is decreasing and what you can do to improve that.

Here are a few reasons that explain why your customer loyalty is declining.

  • Unable to keep up with customer’s expectations:

As time goes by, customer expectations keep getting increased. Thus, to gain customer loyalty, fulfilling customer expectations has become essential. But in recent years, despite having a huge investment in customer services, companies are failing to fulfil customer expectations.

Customers tend to compare companies by their latest approach in the market and how they are different from other brands. Usually, customers expect the same services the top companies are providing. However, if that is not fulfilled, they do not hesitate to change the brand.

  • Insufficient customer loyalty programs:

The majority of companies were in the delusion that to gain customer loyalty is to give them a loyalty card. However, studies show that loyalty cards reduce profit margin on existing customers, resulting in financial loss. Companies tend to forget that they cannot buy customer loyalty, they have to earn it.

  • Transparency:

In this digitized world, the fast adoption of smartphones and tablets has improved transparency. These days the majority of consumers use their smartphones to compare prices and specifications of the desired product. If the customers can’t find the real added value, then they will shop regarding the price of the product. Thus, transparency creates hurdles for companies to gain customer loyalty.

These are some of the reasons why customer loyalty is decreasing. These are the steps you can take to impress your customers and gain their trust.

The first step to gain customer loyalty is approaching them with transparency that goes beyond the product description. Modern customers expect companies to work accurately on three levels.

  1. Good customer services
  2. How companies treat their employees
  3. Adding value to the society

To gain consumer trust, companies should be the same on all three levels. You cannot solve the consumer loyalty decrement through marketing. A new customer and new ad campaign won’t solve the problem either. Therefore, observe the top company’s customer satisfaction strategies, as they have a clear vision of the value their company offers and how they can translate that vision for their employees and customers.

Want to improve brand loyalty for your online business? Among others, the user experience your customers have on your website affects much on their loyalty. USA Commerce can help boost the user experience of your customers that impact their loyalty towards your brand and improve your customer retention rate. Contact us with your requirement to discuss things further and kickstart your project right away.

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