To better explain the concept of a “loyalty loop,” this article will use a fictional business called Nancy’s Printshop as an example.
Nancy’s Printshop is a metaphorical example, of course. This could be your shop. And that’s the point. Read this article with the idea of replacing your shop name, employees, practices, and customers, with the ones described for Nancy’s Printshop.
Ongoing engagement
Nancy’s has been in business for about ten years now and has become one of the key backbone businesses in the community. The company prints and embroiders apparel for local schools, businesses, and other groups.
Although they are creative people and provide a solid product and service, the engagement and relationships they have built since they first opened their doors are what keep people coming back. After all, they know that anyone can print or embroider a shirt. At Nancy’s, they don’t sell ink or thread on a shirt like most of the competitors.
They sell trust. They sell the experience. They sell their expertise. They sell problem solving.
This builds the solid, engaged relationship that defines their loyalty loop.
The six stages of the loyalty loop
Let’s explore how Nancy’s Printshop implements the idea of a loyalty loop to transform casual customers into loyal advocates.
There are six fundamental ideas to the loyalty loop that everyone at Nancy’s Printshop pushes out on a daily basis: consider, evaluate, buy, enjoy, advocate, and bond. Let’s review these ideas first.
1. Consider
The loyalty loop starts when potential customers first acknowledge a need that Nancy’s Printshop can fulfill. In the “Consider” stage, visibility is critical to success. Current and potential customers have to know that you exist.
This is why your marketing plan is so important. Marketing is the act of creating a customer. Nancy’s employs a robust mix of targeted social media ads, community engagement, and visibility at local events.
For example, once a year, Nancy’s has a “Free Print Day” where locals can bring in any shirt, and a themed design can be printed by the event attendee or one of Nancy’s staff members. This has been well-received, and if anyone forgets their shirt, Nancy’s will provide one at a nominal charge. Free Print Day is about building goodwill, but also about having people know where the shop is located.
2. Evaluate
Once a potential customer considers using Nancy’s Printshop, they move into the evaluation phase. Here, they naturally compare everything about Nancy’s with other competitors. Potential customers always evaluate, so Nancy’s provides easy to understand examples of their best traits.
On their website and social media are examples, descriptions, and simple icons that tell the story behind their emphasis on sustainability, the impact of creative design, plus videos from current customers outlining their superior customer service and professional experience to provide social proof.
The goal in the evaluate stage is to reassure potential clients they are making the right choice in using Nancy’s Printshop.
3. Buy
The buying stage should be as frictionless as possible. Nancy’s Printshop ensures the purchasing process – from product selection to payment – is straightforward and user-friendly.
Clear communication is emphasized. This happens with automatic notifications, and record keeping. The “next step” in the process is constantly clearly defined. This includes information, but also a timeline for when something should happen.
All communication is clear and concise. Mutiple payment options reduce resistance, as the goal is to make payment easier and reduce buyer’s remorse.
Overall, every action so far in the customer’s journey is focused on establishing trust with the customer. Easy wins are cumulative.
4. Enjoy
This is a forgotten part of the customer loyalty program for most shops. Getting the customer to enjoy their experience with the product and the service that Nancy’s Printshop provides.
All staff members at Nancy’s knows that repeat customers are created by creating delight and joy with working with Nancy’s Printshop on any project. Small details, such as professional packaging, a custom QR code driven reorder card, and hand-written notes on the packing slip by the person that assembled the order, are all part of the experience. Tracking numbers are automatically sent via the system.
Nancy’s Printshop also provides tips on how to best use and care for any product they ship through downloadable guides and videos. These are accessed through a QR code that is printed on a sticker that is placed on the packing slip.
Having a proactive approach to customer satisfaction not only enhances enjoyment, but also mitigates any potential dissatisfaction with an order.
5. Advocate
A happy customer can be a vocal advocate. The marketing team at Nancy’s built a few outreach touches that are triggered by an order shipping. The first email arrives one-business day after the shipment is scheduled for delivery, inquiring if everything was perfect. Two days later a referral note is sent requesting the customer to either post an online review or send a referral about Nancy’s Printshop to someone they know.
Additionally, featuring customer stories in newsletters, on social media, and in other aspects empowers customers to become brand champions for Nancy’s.
Remember, people love seeing themselves online, and developing a program where your customers share the experience of working with you can tremendously impact sales.
6. Bond
The final stage in the loyalty loop is about cementing the relationship. In your life there are products, movies, restaurants, bands, or other things that you buy or consume, regardless of price. There is a bond or connection with the brand that goes beyond the transactional elements of an order.
Nancy’s Printshop creates relationship bonds with customers because they treat customers like real people. Nobody is an order number. Customers are treated like people. Trust is earned because there is empathy, caring, and even humor inserted into the process.
The goal is to form a bond with the customer that transcends the order. Every touchpoint along the way with the customer journey reinforces this element for Nancy’s Printshop.
Best practices in the loyalty loop
Implementing the loyalty loop in your shop requires some understanding and genuine empathy about your customer. Here are some best practices:
- Personalization: Tailor your communication and offers to meet specific needs and preferences of your customers. Use their name. Communicate with them on the channel they prefer, email, text, or a phone call.
- Feedback loops: Regularly gather and act on customer feedback. Your mission is to continuously improve your product, services, and experiences. Experiment with new ideas.
- Consistency: Ensure every interaction with your shop is consistently positive, which will reinforce trust and satisfaction.
- Community engagement: Engage with your local community through sponsorships, events, and partnerships. You must be present to win. Be visible and helpful. GP
Want to gain insight into how well your shop engages with customers at each stage of their journey with your business? Click here for a Loyalty Loop Self-Assessment Tool.
