Customer loyalty is a big deal—and here’s why. Loyal customers spend 67% more than new customers. And, more than eight in 10 companies believe that retaining customers is cheaper than winning new ones.

So, how do you encourage loyalty? What makes those few customers you’ve had for years stick around? It’s time to crack the code.

In this guide, we’ll explain why customer loyalty matters. Then, we’ll touch on the common factors that encourage loyalty.

Next, we’ll shine a light on the number one, most direct cause of customer loyalty. Use this as your north star. Let it guide all of your decision-making and watch as you score more repeat business.

Finally, we’ll give you some easy-to-implement tips to boost loyalty now. Let’s jump right into it.

Why Customer Loyalty Matters

You might be loyal to your favorite sports team. You watch every game. You cheer them on through the good and the bad.

You wouldn’t dare root for another team. Your commitment is too fierce. Just imagine if your customers felt the same about your business.

This is why customer loyalty matters. It inspires your customers to choose you every time. They don’t look elsewhere. They will come back and spend more money with you.

Better yet, they are so confident in your ability that they happily recommend you to others. They become your brand advocates.

In short, loyal customers help you grow your business by:

• Giving you consistent work. They’re your bread and butter. They’re dependable, which means you can make informed decisions about your future.
• Referring you to friends, family, and neighbors. You get new clients without having to spend on advertising.
• Trusting you to right any wrongs. Loyal customers are more forgiving if there are any issues. Their trust keeps long-term relationships going, even when mistakes inevitably happen.

RELATED ARTICLE: Repeat Customer vs. New Customer: Which is Better?

Common Factors That Influence Customer Loyalty

What does it take to earn loyalty from your customers?

Consistency

If you promise a three-hour arrival window, make sure your technicians show up within that time frame. If you fix a furnace, address a plumbing issue, or clean a carpet, the work needs to hold up. It needs to be high-quality—no excuses.

Over time, consistency builds trust. Trust is the foundation of loyalty. It’s no wonder 83% of customers won’t do business with a company they don’t trust.

Reliability

Should they need you in a pinch, your clients should feel they can depend on you.

It might be a broken AC unit in the summer. Or maybe it’s a burst pipe in the winter. Whatever the emergency, being reliable will keep your customers loyal.

Think about it like this: When the stakes are high, your customers can’t afford to take a risk on a company that won’t show up.

When you deliver in these moments and exceed expectations, customers will continue using your services.

Personalization

Personalization is about adapting your services to meet each customer’s unique needs.

One customer might work all day, so they can only do after-hours appointments. You might accommodate this.

Or one of your regulars might prefer to pay in cash. You accept this payment method so they can do what’s easiest for them.

Regardless of the specifics, personalization is about the little things. It’s about showing your customers that you notice them and care for them as individuals.

FROM ONE OF OUR PARTNERS: How to Grow Your Home Service Business by Asking for Referrals

What Is the Most Direct Cause of Customer Loyalty?

Consistency, reliability, and personalization—three core tenets of customer loyalty. But there’s something else even more direct and influential.

What is the number one cause of customer loyalty in the home service industry? Customer experience.

The customer experience encompasses every interaction a customer has with your business. It starts the moment they call to schedule a service. It stretches beyond the job’s completion and includes follow-up and ongoing support.

It’s about the quality of your work. But more than that, it’s how the entire process makes the customer feel.

Let’s break it down.

Communication

Communication is important in any relationship—in business, it’s no different.

When a customer gets in touch, they expect the person on the other end to be helpful and professional. They want clear answers to their questions. They want to be reassured.

This kind of service plants the seed of trust. This is why 88% of customers say that great service makes them more likely to buy from a business again. So, if you achieve this from the outset, you’re off to a good start.

Communication shouldn’t wane throughout the service either. Keep customers in the loop. For example, you might inform them when a technician is on the way. If the tech is held up at a previous job, let the customer know.

Work Ethic

Your technicians are the face of your company. They need to show up on time, be respectful, and leave the work area as clean as they found it.

How they handle themselves on the job site impacts how customers feel about the service. If your team treats your clients with respect, they build trust. If they are rude or late, they sabotage the customer experience.

RELATED ARTICLE: What Customer Retention Means and Why It Matters

Support

The job is never done. A gold-standard customer experience includes timely and meaningful follow-ups.

You might send a brief email to ask if the service met the client’s expectations. If not, you can take action to remedy the situation.

Customers appreciate this extra step. It can turn an unhappy customer into a satisfied one.

Continuous Improvement

Finally, cultivating a customer experience that encourages loyalty is about continuously improving.

This isn’t about making guesses or assumptions. It’s about using customer feedback to fill in the gaps and build the best version of your business.

Ask for reviews, read them, and make changes if needed. Send out surveys to learn more about how your customers rate their experience.

Look for trends or patterns in the data and address these issues first.

FROM ONE OF OUR PARTNERS: How to Get Customers to Leave Reviews for Your Local Home Services Business

How You Can Start Enhancing Customer Loyalty Right Now

Here are some quick and easy steps you can take now to level up your customer loyalty:

• Build a customer feedback system. There are plenty of free tools you can use to send out surveys after each service. SurveyMonkey and Typeform are great options. Remember to keep surveys short and to the point.
• Personalize your services. Keep track of customer preferences and past services. You might like to use a customer relationship management (CRM) system.
• Map out the customer journey. Take time to review each step your customer goes through. Flag weak points and areas where you can improve the experience. For example, you might need faster response times or clearer communication.
• Set up a loyalty program. Reward repeat customers with discounts or offers. This can be as simple as offering a free service after a certain number of visits.