Customer loyalty is sought after by every company, but it can be crucial to the success of a small business.

With customer loyalty comes customer retention and repeat business, which are linked to increased revenue and a sign of a strong company.

“I would argue that the most important indicator of a brand’s health is customer loyalty,” says Melissa Puls, chief marketing officer and senior vice president of customer success and renewals at Ivanti, an IT software company based in Utah.

Building and sustaining strong customer loyalty is the holy grail for entrepreneurs, business owners, and leaders, Puls says. 

The clearest path to customer loyalty, she says, is making customers the true center of every decision.

“When you remain centered on prioritizing customer needs and experiences, you create a foundation of trust and understanding that fosters long-term loyalty,” Puls writes in a Fast Company Impact Council article.

"Companies that offer proactive customer support see a 15 to 20 percent increase in retention, as customers feel valued and cared for," according to Firework, an AI-powered platform for video commerce.

See these tips on how your small business can foster loyalty from customers, increase customer retention, and encourage repeat customers.

Keep Communicating

Whether monthly or quarterly, communication with your customers on a consistent basis keeps your business top of mind and gives your customers the opportunity to learn more about your products and services.

“This regular contact can provide an opportunity to recommend products or services that could be useful to customers, encouraging repeat business while improving your relationship,” says an article on CO, the U.S. Chamber of Commerce’s digital platform for small businesses.

"Gathering and acting on customer feedback can increase retention rates by 14 percent, helping businesses address pain points early," says Firework in a post on its website.

Provide Top-Notch Service

Pay attention to what customers are saying so you can continue to create and implement strategies to provide the best service -- building long-term customer loyalty means delivering consistent and personalized experiences.

Customer service can be your strongest loyalty driver or your biggest risk, writes Alex Doan for the customer experience platform Nextiva. In a Microsoft survey, "96% of consumers say customer service is key to brand loyalty," according to the post.

Whether it’s feedback from surveys, social media comments, in-store visits, or reviews, listen to your customers and adapt accordingly.

“Enhance customer experiences with tailored services and diverse communication tools, including automated replies for common inquiries and live chat options,” says the post by CO. 

“Your customer service staff should be well informed and prompt in their responses, with the ability to proactively identify and address issues before they escalate.”

Companies that offer proactive customer support, according to Firework, see a 15 to 20 percent increase in retention as customers feel valued and cared for.

Human Interaction

While there are many efficiencies gained by AI chatbots,  automated systems, and digital interfaces, there needs to be a balance between technology and the human element to effectively build true connections with customers, says Puls, the CMO at Ivanti.

“When everyone uses the same technology solutions, genuine human engagement becomes your true differentiator,” she writes in the Fast Company post.

“Demonstrating your ability to understand and connect is crucial in maintaining strong connections with others and is ultimately best left to people, not machines. These qualities foster loyalty, trust, and genuine relationships.”

For more tips on building strategies that promote customer loyalty and customer-focused service, check out this Flash Guide on Customer Reviews for Small Businesses, and how to Regain Customer Loyalty When It's Been Pushed to Its Limits.