A strategy for loyalty should include hygiene elements and elements that build trust between the customer and the company.
Businesses are under pressure to retain customers in tough economic times. This is not surprising considering that a 5 percent increase in customer loyalty can boost profits by 25% to 95%, according to a previous study by Bain and Co.
This begs the question: How can small and medium-sized enterprises (SMBs), in Hong Kong, with limited resources, cultivate customer loyalty with newfound overseas customers thousands of miles away?
How can they capitalize on the growth opportunities created by the pandemic?
Many businesses believe that a loyalty program is the best way to build loyalty. However, this should not be the sole consideration. A strategy for loyalty should include hygiene elements and elements that build trust between the customer and business.
A smooth customer experience is a major hygiene factor. This creates a reason for customers not to leave, and it prevents them from having poor experiences.
This is especially important for PayPal, as we strive to create products that allow our clients around the globe to ensure seamless and simple payments for their customers. It’s a key element to building and maintaining loyalty.
This is especially important for customers who live in different time zones. The longer service response and query times can cause friction which may lead to a missed moment of truth.
It is possible to make a difference by investing in the right eCommerce and payment infrastructure.
Allowing customers to checkout as guests for the first time or repeat customers is a great way to reduce cart abandonment and increase your chances of making a purchase.
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While many businesses are familiar with the drivers of customer loyalty in Hong Kong, these factors can be quite different in international markets. KPMG’s 2019 study found that personalization and satisfying expectations were the main drivers of brand loyalty in Hong Kong.
These are normal results, but a 14 market study by Edelman shows a more complicated picture. It found that 43% of consumers will remain loyal if they have faith in a brand, regardless of what happens.
Consumers trust brands that have cultural, social, and purposeful aspects, especially after the pandemic.
It can be a powerful tool to attract customers who are committed to your brand and will remain loyal. This will resonate with existing customers and motivate them to take action, regardless of where they may be located.
Many successful global brands started small, but have grown to be household names because of their mission. This could be a commitment towards organic products, charity donations or simply bringing your personal touch to your products.
Also read: Top 3 Lessons I Learned from Growing a $100K+ Business
Many businesses view rewards as a promotional giveaway that is short-term. However, this incentive only encourages new customers or existing customers to purchase a product.
Businesses should instead design reward mechanisms that encourage customers to behave as their most profitable fifth-year customers.
Examples include customers who participate in early-bird events or make regular purchases from new lines.
It might seem expensive and difficult to build loyalty with customers overseas. There have been many eCommerce platforms available in recent years that allow sellers to reach new customers.
Many offer localized marketing services to help businesses engage and attract customers, without having to learn a new language.
Technology is making it easier to create great customer experiences and build customer loyalty. Small businesses that sell cross-border can be successful if they have the right foundations. They can capture new growth regardless of where their customers live.
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