Loyalty forms the foundation of every business that’s successful over the long term. Loyalty from customers, employees, vendors, partners, board members, shareholders, and other stakeholders is key. Companies need to treat people well, do what’s right, and keep their promises. If they do, stakeholders will return to them again and again.
Customer loyalty improves your return on investment, builds brand reputation, and generates insightful data you can use to replicate their experience. You might say that loyalty breeds contentment with your brand. And it creates ambassadors who will tell others why they should buy from or work for you.
No company should take loyalty for granted. It has to be earned at every point of contact every time. Discounts, easy ordering, free shipping and returns, quality products, relevant content, and stellar customer service are some ways to earn it. However, transparency is also critical.
Companies that operate with transparency build accountability and trust with stakeholders. Shoppers want to do business with those they can trust. From that, loyal relationships are born. Here’s how your company’s transparency affects the loyalty you seek.
Transparency Engages Community
Maybe you don’t think of your company as a community, but you should. Your business helps customers solve problems and relieve pain points. Your leadership provides guidance and infrastructure for stakeholders. Your employees offer productivity and support.
When companies are transparent in their operations and decision making, people feel involved or want to be. They want to provide input and watch how the company uses it. They want to participate in whatever they’re comfortable with and not worry about what’s done behind the curtain.
In the digital age, big brother is always watching, and many consumers aren’t content with it. Companies may get permission to gather second- and third-party data, but few people feel a sense of affinity when it’s requested. On the contrary, the request alone can create a sense of concern or discomfort.
But companies who ask consumers for zero party data openly invite them to join their community and make it better. Zero party data is completely voluntary. It’s a direct conversation between you and your customers. It’s a personal and open invitation from you to consumers to enter the tent and become a part of what’s going on. Your customers can choose whether they want to take you up on it or not.
When people choose who they do business with, they’re likely to pick companies that have made them feel like they belong. But companies can only do that by being transparent in the course of doing business. Share what’s going on with your brand and loyalty will follow.
Transparency Is Pragmatic
Loyalty is created when expectations are met or exceeded. You may have every intention of doing that, but what if the expectations of others aren’t realistic? If people expect more than you can deliver, they won’t keep coming back.
Privacy policies are prime examples of corporate transparency. Companies collect massive amounts of data from consumers who, in return, want to know how their data is used. They expect you to protect their private information, not only by your policy but by your policy in practice. They will know why you’re asking for zero party data and trust you to use it as you say you will.
Setting realistic expectations runs the gamut, from secure payment practices and shipping to return policies and warranties. For example, maybe you can’t compete with Amazon’s same-day or next-day delivery. But as long as you tell customers how long delivery should take, they likely won’t be disappointed.
When customers call your service center, do you tell them how long it may take for someone to help them? If they don’t have time to hold for a few minutes, they can call back when they do have time. And if you only offer exchanges and not refunds on returned items, do you make that clear throughout the ordering process? If you do, customers won’t be shocked by your response if they do want to return something.
Setting realistic expectations is the epitome of transparency. What customers see and hear from you should be what they get. Don’t make it complicated. Just make it honest.
Transparency Drives Positive Change
Successful companies encourage brainstorming, the free exchange of ideas, innovation, and creativity among their employees. That’s simply because they promote continuous improvement. As great as their products may be, they’re always striving to build a better mousetrap.
However, in a digital world, there is no reason to limit these activities to those in house. If you aren’t soliciting input and ideas from customers, your brand is missing an opportunity to improve. Of course, you have to open up to encourage these active roles among your customers. But done well, that risk can build loyalty.
There are a couple of caveats to this process. First, you need to be willing to listen to all input, whether it’s positive, negative, or sheer madness. Second, you must act on the input and let those who provided it know what you have done with their ideas. Otherwise, you’re just making empty promises, and those are detrimental to building allegiance.
Prime examples include IKEA, Lego, and DeWalt. These companies encourage their customers to offer input that could lead to the development of new products. But that’s not all. They open the R&D book enough to provide guidance, information, and the communication channels they’ll need.
Such customer-centric approaches have the potential to transform your company into something better. In the process, customers become more loyal to your brand because they’re invested in its success.
Shine the Light on Loyalty
Companies need to earn the loyalty of their customers through honesty, openness, and accountability. Community building, pragmatism, and investment in the future will make those customers want to support your brand. You just need to shine the light to show them the way.
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