How customer experience earns loyalty, and vice versa

When companies dissect their customer satisfaction and loyalty strategies, they might find that the two are reliant on one another.

When companies dissect their customer satisfaction and loyalty strategies, they might find that the two are reliant on one another. Providing customers with a high quality experience can inspire return visits, positive word-of-mouth reviews and ultimately, loyalty. On the other hand, brands are now using information gathered by loyalty programs to cultivate a superior experience.  

Guy Nirpaz, co-founder and CEO of Totango suggested five tips for improving customer experience, which can turn one-time shoppers into loyal customers, according to Mashable. He recommends brands give customers a product they will love, create a customer success team, evaluate a customer's health score throughout the experience, nurture paying customers and learn from churn.

When brands learn at which point customers are dropping off, they can examine their efforts and develop a plan to improve loyalty.

Businesses are also now able to mine information from loyalty programs to learn more about their customers' preferences. Some hotels are tapping this information and using it improve a client's experience by adding personal touches to their rooms, according to The Nation. Banks are providing a similar service, bringing multiple rewards programs together to best meet the needs of each client. If these programs are effective, they could help a company yield a better return on investment, the source reports.