5 Strategies to Retain Your Customer - Brand Loyalty
In an era of ever-increasing living costs and a steady rise in the Goods and Services Tax (GST), customer retention has become paramount. While Gen X boasts unwavering brand loyalty, Gen Y & Gen Z lean toward price-consciousness, a choice shaped by relentless inflationary pressures.
However, this doesn't mean that the only method for retaining your customers is to keep your prices competitive. Here are five strategies recommended by WGSN's 'The Future of Loyalty 2024' to retain your customers.
1. New Value System
With value taking precedence, businesses must think creatively about how they can offer more to redefine their value proposition beyond their brand image.
Value-Adding: Consider providing limited edition bundles, like Darlie with their limited-edition design cups.
Consistent Value: Delivering brand value is vital, as seen with Esse's promise of being slow and sustainable fashion, achieved through timeless modular designs and sustainable fabrics.
Experiences and Services: Experiences create lasting memories. For example, Moom Health organizes Moom Walk events within their Singapore and Kuala Lumpur communities.
2. Payment & Financing - BNPL (Buy Now Pay Later) atome
User-friendly payment methods are becoming increasingly vital for businesses to encourage consumer purchases. These methods include digital wallets, point-based financing, and BNPL (Buy Now Pay Later) options.
Digital Wallets: YouTrip, PayLah!, Koi, and Starbucks.
Point-based Financing: FairPrice, Yuu, ShopeePay, and credit card miles.
3. Evolving Ownership
As times change, so do our perceptions of ownership. New forms of ownership are emerging, such as co-ownership of items or temporary ownership for a specific period. An example would be Style Theory where they have a subscription plan and people can rent clothes monthly without having to buy them.
This evolving ownership model involves innovative investments, eco-friendly approaches, and luxury item accessibility. The sharing economy is expected to hit $600 billion by 2027.
Fashion Sharing Brands: Style Theory, Rentadella, Style Lease, 18 Atelier, and Luxe Wardrobe.
Car Sharing Brands: GetGo, BlueSG, Drive lah, and TribeCar.
Bike Sharing Brands: Anywheel.
4. Consumer Stakeholder
In an era where consumer trust is declining, people want to know that their voices are heard by the brands they support. A simple way to achieve this is by conducting surveys or organizing focus groups to gather feedback from your customers.
A great example of a brand that actively listens to its consumers is POPFLEX. They engage with their audience through Instagram, value their feedback, and invest time in designing products that meet the highest standards of quality.
One of the platforms to consider for conducting a survey is MailChimp. It offers a free plan for companies with up to 500 contacts. MailChimp is easy to navigate, with pre-built email templates and customizable surveys that make it engaging for your customers.
5. Community Commitment
Despite the digital age, many people still feel disconnected and lonely. They crave a sense of belonging and recognition. Companies like Charles & Keith, Nike, and Sephora have successfully fostered community engagement through Ambassador Programs, Membership initiatives, and community-building efforts, respectively.
By implementing these strategies, your business can enhance customer retention, foster loyalty, and adapt to the evolving consumer landscape.
