“Anybody can provide awesome customer service. You don’t have to be a rocket scientist to just be nice and be helpful.”

—  Wade Foster, CEO & Co-founder, Zapier

In 1868, J.R. Watkins, a door-to-door salesman, changed the game for customer trust and satisfaction. He was the first to offer a full refund if the buyers weren’t satisfied with the product.

This wasn’t just about refunds but about meaningful customer service and showing customers they mattered. After all, 74% of consumers would rather be understood and valued than get discounts and loyalty perks.

This blog post will discuss how excellent customer service can build unbreakable loyalty and strengthen your brand’s foundation. We will also explore real-world examples of brands going the extra mile to satisfy their customers.

What is customer loyalty?

Customer loyalty is the trust and bond a customer has with a company built through a series of positive interactions over time. It is an ongoing positive relationship and a by-product of great customer service.

Loyal customers are more likely to :

• Make repeat purchases
• Interact more with the company through various channels
• Provide insightful feedback 
• Recommend your brand to others

Why does customer loyalty matter?

Customer loyalty is the reason people choose you over your competitors. However, it doesn’t take much to change their mind. 59% of consumers in the U.S. will abandon your brand after several bad experiences, and 17%, with just one. 

Building customer loyalty is a consistent effort that centers around offering quality products and services, transparency and proactive engagement. Once done right, it can lead to:

1. Increased retention

Loyal customers are 64% more likely to purchase from the same brand. In fact, 31% will pay more to stay with a brand. This can reduce customer churn and enhance customer lifetime value.  

2. Higher revenue

Logically, increased intention will automatically lead to a higher revenue rate. Loyal customers are likely to spend more over time and purchase in large quantities. Research shows that returning customers spend 67% more than new customers, generating higher revenue.

3. Word-of-mouth marketing

47% of customers express loyalty by recommending the brand to friends and family. Loyal customers are the real brand promoters, as they can heavily influence others to purchase from your brand. This advocacy is highly effective as it can influence 54% of consumers to purchase.

4. Reduced acquisition costs

Acquiring new customers can be expensive. A brand loses an average of  $29 for every new customer acquired. Loyal customers are a stable and predictable source of income, reducing the need to constantly acquire new customers, resulting in reduced costs.

5. Enhanced brand reputation

Customers who are impressed with your products and services are more likely to leave positive reviews and promote the brand to their network. This can boost your brand reputation while fostering trust and credibility among potential buyers.

Ways to build customer loyalty with exceptional customer service

Losing more than half of your customers—52%, to be exact—because of poor service isn’t just a statistic; it’s a warning. Modern customer service is not just about exchanging polite interactions; it’s about understanding their needs and catering to them in a way your competitors can’t. 

Building customer loyalty requires exceptional service, whether sending a warm birthday message or offering a discount coupon. 

Here’s how you can make it happen:

1. Be there when they need you

Say your customer is trying to troubleshoot their newly bought Wi-Fi router late at night and cannot get it working. It’s urgent; they are on an indoor movie date. But your business hours don't open until 10 a.m the next day. Imagine the frustration.

You can turn this moment of frustration into an opportunity by offering them immediate access to support when they need it. No, you don’t have to make agents work 24/7, but deploy self service options like AI-powered chatbots and knowledge bases to support users who have questions regarding products outside of business hours.

It’s also a great option for customers who are introverts or who do not wish to contact your company directly for simple issues. This extra assistance is what customers need to feel secure and loyal.

2. Personalize every touch 

“Hi, how can I help you today?”

vs.

“Hi Emma, how can I help you today?”

Just addressing your customers by their names can make their day brighter. Now imagine how they would feel if you sent birthday wishes yearly or provided discount coupons for delayed shipments.

Businesses can leverage customer data and AI-powered tools to deliver personalized responses that precisely foresee and address individual needs. This not only streamlines experiences but also minimizes the time and effort customers spend seeking assistance.

For example, tools such as predictive analytics can analyze user behavior, such as history and past interactions, to understand customer needs and then create tailored recommendations to make them feel special.

3. Reach them in their comfort zone

Who would want to wait in endless loops of hold music? Customers sure don’t.  Thankfully, there are more ways a customer can connect with a brand. But connecting isn’t enough; customers want a seamless and consistent experience across channels. 

This is where omnichannel support comes in. It allows customers to connect on their preferred communication channel and even switch channels without ever having to repeat things. Omnichannel solutions can help you offer premium support by:

• Helping you understand the customer journey
• Identifying the frequently used channels and type of interactions customers prefer
• Creating smooth transitions between these touchpoints

4. Understand their satisfaction level

Asking for feedback is a way of showing customers  they matter and you are working hard on making things better. Also, to drive customer loyalty, you have to measure key customer satisfaction metrics and understand what people love and hate about your service. This will help you create targeted strategies to resolve issues better.

Some of the top metrics to track include:

• Customer satisfaction score (CSAT): The level of satisfaction a customer has after an interaction 
• Net promoter score (NPS): How likely customers are to recommend the service or company
• Customer effort score (CES): How easy or difficult it was for the customer to resolve the issue

The best way to collect feedback is by using automation tools. AI chatbots are great for asking customers to rate their experience after the resolution of a query. Sending automated feedback emails after an interaction is also a convenient way to collect responses.

5. Start a loyalty program

79% of consumers participate in at least one retail membership, loyalty program, or subscription. Creating a loyalty program is an excellent way to reward repeat customers with suitable offers, discounts, and freebies. It is a way of motivating customers to continue buying from you instead of your competitors.

For example, Starbucks’ loyalty program rewards customers with stars for each purchase. They can redeem these points to unlock perks like free drinks or personalized offers.

Real-world examples of brands excelling in customer service

Companies that go above and beyond to meet customer needs stand out and set industry benchmarks. Their ability to anticipate customer expectations, respond swiftly, and provide personalized solutions is the reason why we are discussing them today. 

These brands prove exceptional customer service isn’t about one-off gestures but consistently delivering value at every touch point. 

Here are some real-world examples of businesses excelling in customer service and creating memorable experiences:

1. Grammarly

Grammarly keeps its audience active and encouraged by sending customized email alerts. The weekly email updates provide insights into the user’s writing habits, productivity and language expertise, such as:

• Number of words written, writing mistakes and unique vocabulary used
• Common tones detected in your style of writing
• The total number of words Grammarly has analyzed since the beginning
• Advanced suggestions you could get with Grammarly Pro

This personalized approach not only helps users review their writing skills but also keeps Grammarly top-of-mind. As a result, users feel like they are on a journey of self-improvement rather than being targeted by sales tactics.

2. Zappos

Missing out on Zappos while talking about great customer service would be a crime. In fact, at this point, they could be used synonymously. On June 11, 2016, a Zappos employee had the longest customer service call in history at 10 hours and 43 minutes. 

At Zappos there is only one ultimate principle— to make the customer happy, no matter what.The agents never use scripts, and they are told not to upsell. 

Among hundreds of other things, they are also known for delivering flowers to customers experiencing difficulties, offering free upgrades, and buying an out-of-stock item from a competitor to provide customers with unparalleled service.

3. Amazon

Amazon is known for its ability to predict and resolve delivery-related concerns before they arise. The company utilizes predictive analytics to inform customers about their delivery status, including potential delays. Customers receive timely updates via email or app notifications, so they never wonder where their package is.

When delays do occur, Amazon often goes a step further by offering compensatory benefits, such as a full refund. This proactive communication not only smooths out the customer experience but also reduces the number of queries related to order statuses. 

4. Southwest Airlines

Southwest Airlines reaches out to its customers even before they have a chance to complain. Once, a customer tweeted how they had a terrible Wi-Fi experience on a flight even though it was paid. Once they got home, a refund of the $8 internet purchase awaited them in their inbox. Super proactive, isn’t it?

Contacting your customers before they raise concerns shows you’re taking the initiative to support them. It’s an effective way to turn a problematic situation into a memorable and positive experience.

Build meaningful bonds with Plivo CX

Just like Rome, customer loyalty isn’t built in a day. It takes a long, dedicated series of thoughtful interactions, empathetic approaches and, above all, care—genuine care that customers can feel. 

Achieving this level of connection isn’t possible without a tool. With Plivo CX, an all-in-one AI-powered platform designed to streamline communication, you can boost engagement and drive customer satisfaction.

The platform offers advanced analytics to help you understand customer needs and satisfaction levels, enabling proactive and personalized interactions. With intelligent call routing, real-time monitoring, and automated workflows, Plivo CX ensures every touchpoint is seamless and efficient.

The key features include:

• OpenAI-powered chatbot:  Assist customers round the clock with personalized support

• Unified agent desktop: Manage all customer conversations across channels like voice, email, and sms from a single platform

• Real-time analytics: Gain immediate insights into customer interactions and agent performance

• Omnichannel routing: Seamlessly direct customer inquiries to the most appropriate agent across channels

• Seamless integrations: Connect with your existing tools, including CRM, ERP, helpdesk, home-grown systems, and more

‍Book a demo now to experience how Plivo CX can transform your operations.