What is Customer Appreciation? Strategies & Examples
Prashanth Kancherla
Jan 30, 2024
Customers play a very important role in the success of any firm. Even though they have many other brands to choose from, your customers have decided to remain loyal to your brand. But is this enough?
Since the cost of retaining customers is greater than that of acquiring new ones, customer attrition is expensive for a company and therefore, it’s crucial for businesses to prioritize strategies aimed at retaining their existing customer base.
Furthermore, data reveal that only 20% of a company’s consumers generate 80% of its revenues.
This means that maximizing customer appreciation should be a top priority for every business because loyal consumers are the ones who will return and buy from you again and again. So, it only makes sense to make them feel loved, valued and appreciated. Even if you don’t have a large budget, you can adopt several low-cost ideas to demonstrate to your consumers that you value them.
Keep reading as we discuss the importance of customer appreciation, how to build a customer appreciation strategy, and a list of tools to help you do it.
In this article, we will explore:
- 1. What is Customer Appreciation & Its Importance
- 2. Customer Appreciation Ideas
- 3. Examples of Customer Appreciation
- 4. How to Develop an Effective Customer Appreciation Strategy
- 5. How to Measure Customer Appreciation Effectiveness
- 6. How Can Call Centers Help Deliver Customer Appreciation?
- 7. Tools to Deliver Customer Appreciation
What is Customer Appreciation & Its Importance
Customer appreciation could be described as a practice of acknowledging and expressing gratitude towards existing clients for their business and loyalty. While conventional sales and marketing focus on gaining new customers, today’s leaders understand the importance of acknowledging existing consumers. Here, the key impetus is on nurturing and strengthening relationships with current clients.
Importance of Customer Appreciation
A customer appreciation plan is part of a company’s overall marketing strategy. It rewards loyal customers while driving loyalty among new consumers by personalizing experiences and expressing genuine gratitude for their business.
In fact, according to research, customer appreciation tactics increase client loyalty, which improves a company’s growth and profitability.
Here are a few more reasons why customer appreciation is important:
High Retention Rates
Customers who feel appreciated, as in any partnership, are considerably more likely to become repeat customers, resulting in a meaningful and long-lasting relationship. If customers create a positive relationship with your company, they are more likely to return for future services.
Increase in Market Value
Showering clients with appreciation helps to demonstrate that they are valuable to the organization, making them feel appreciated and loyal to your company. Companies with more pleased customers receive higher evaluations and comments, giving them a competitive advantage in the market over those who do not.
Increase in Profits
According to a study, loyal clients who buy your products and services spend 90% more often and 60% more on each purchase. Thus, a loyal consumer is five times more likely to return to your business than a non-loyal customer. Furthermore, client profitability increases over time for a maintained customer since they are more likely to acquire further items or services once trust is established.
Gain a Competitive Edge
This advantage remains true because many firms fail to make an effort to express real gratitude to their customers. Because some of them are competitors, there’s a good potential that their clients will switch to you if you make them feel liked and respected. This benefit will increase the amount of people you may offer your products to, resulting in more profits.
Customer Appreciation Ideas
Regardless of your company’s size or budget, using client appreciation strategies is never too early. Here are a few simple and thorough strategies to show your consumers that you value them and begin creating great relationships with them right immediately:
Pay Attention to Detail
Customer service is one area where tiny nuances are really important. Your company may improve the client experience by taking a detailed approach to problem-solving. This might demonstrate to your clients that you value their business and consistently strive to provide the finest experience possible.
For example, a consumer looking for a wedding gift could benefit from just being led to your catalog. This is the most basic level of customer service.
However, suppose a customer care staff member goes above and beyond to understand what the customer is searching for and offers specific product choices and the option to place a particular order to obtain the right gift.
In that case, this will leave a much longer-lasting impression. It will demonstrate to your customers that your company is more than just selling things; you genuinely care about your customers’ needs.
Offer Personalized Services
Personalization is an important technique to gain consumer loyalty. We mentioned it briefly above, but it’s worth going into more detail when it comes to providing tailored customer services proactively. When you can demonstrate to a consumer that you care about them, it can significantly improve their experience.
Personalization does not have to involve sophisticated, dramatic gestures; it can be as easy as engaging with the consumer through their preferred contact mode. Knowing a customer’s preferences and tailoring marketing campaigns to those choices is another simple approach to ensure customers get a customized and relevant experience with your business.
Providing personalized experiences that make good use of consumer data makes customers feel appreciated and promotes loyalty.
Launch a Loyalty Program
Customer loyalty programs provide participating customers with prizes, discounts, and freebies for their purchases, which they can redeem later. For example, a free fifth cup of coffee or a $10 discount once a punch card is filled.
In some situations, businesses may provide paid loyalty programs with unique perks, such as Amazon Prime users receiving free shipping on orders in exchange for a monthly subscription.
Creating a loyalty program that people want to join is critical, one that makes it simple to earn, receive, and redeem rewards. Consider developing virtual consumer appreciation strategies, such as online-only exclusives or promos. Make sure you are gathering people’s email addresses and phone numbers before offering them anything in return.
It’s different than having a cashier ask for your phone number every time you purchase at a retail establishment, only to be disappointed when no discount or perk is offered. Your loyalty program should offer enough value to keep people coming back.
Surprise Them
Some businesses like adding free promotional items, such as pencils, notepads, or stickers, with their shipments. However, a customer gratitude present is more significant if it corresponds to the customer’s order.
For example, if a customer orders a protective cover for their phone, provide a free screen cleaning kit; if they get a package of scented oils, include a few samples of alternative scents they might enjoy. Make it even more personal by including a note explaining why you sent the extra gift.
Honda took the concept of surprise gifts to the next level when it discovered that a client would hit one million miles on their Accord. Honda handed the client a free car and created a video about it, which has received over 83,000 views on YouTube.
Social Media Shoutouts
Recognize and thank loyal customers publicly on social media platforms by sharing their photos or testimonials. This not only shows appreciation but also encourages positive word-of-mouth marketing. Additionally, this practice fosters a sense of belonging within your online community, encouraging further engagement and advocacy.
Customer Spotlights
Feature loyal customers on your website or in your marketing materials, highlighting their success stories or how they use your products/services. This showcases their importance to your brand and can inspire other customers. This personal touch humanizes your brand and reinforces the significance of every customer, fostering deeper connections and long-term loyalty.
Examples of Customer Appreciation
Birthday emails are a delightful treat for both consumers and shops! They have a 481% greater transaction rate and earn 342% more income than other promotional emails. They have a significant impact on brand loyalty.
For example, Disney offers clients a 20% discount on online purchases for one month. Giving clients individual codes lets them track purchases and see who is redeeming the deals.
Similarly, here are five other brands that nailed their customer appreciation strategy:
EpicBar
EpicBar, a meat-based protein bar and snack brand, did not wait for Client Appreciation Day to express their gratitude thoughtfully and compassionately. When one of their clients received a faulty protein bar, they didn’t just replace it; they sent out a whole box containing six bars, a coupon, and a handwritten letter. Even though this was not a campaign, it is a beautiful way to express gratitude any day of the week. Turning poor experiences into good ones will ensure that clients can trust your organization and that their opinions are heard and cherished.
Zappos
Zappos, a famous e-commerce company, is recognized for going out of its way to please customers. So it’s no wonder they go above and beyond to show appreciation for their customers.
Along with providing personalized gifts with orders to thank consumers, the company scheduled customer appreciation events on weekends throughout 2017. They dubbed it the Friends with Benefits Roadshow, and it featured exciting activities like local food, live music, and puppy fashion displays to thank consumers and give back to the community.
Zappos demonstrates how in-person meet and greets and entertaining activities can be the ideal icebreaker for thanking consumers and establishing customer connections.
Honda
Honda has had several remarkable customers who have taken great measures to demonstrate their undying allegiance to the brand (for example, this client tattooed the Honda logo on his forearm).
When Honda surpassed 1 million Facebook likes, the firm decided to go all out to express gratitude by establishing the #HondaLovesYouBack campaign, which continues to be used today.
In this campaign, Honda photographs staff performing the same tasks for consumers that customers have done for the company. It demonstrates to customers that Honda genuinely sees and values what they have contributed to the brand.
Pizza Hut
In 2013, Pizza Hut capitalized on typical Valentine’s Day sentiments to launch a hilarious and valuable prize campaign. The campaign, which used the hashtag #LastMinuteLovers, was aimed at spouses and significant others who had put off planning and purchasing Valentine’s Day gifts.
The initiative ran from February 11 to February 13, right up to Valentine’s Day, and included Pizza Hut freebies of 24 presents — a pizza-scented perfume and a $20 gift card — with the promise that they would be delivered in time for the holiday. The campaign emphasized the brand’s lighthearted nature while increasing visibility for the company.
Sprinkles Cupcakes
Freebies are a great approach to making fans feel valued. Sprinkles frequently hides a “secret word” on its social media platforms, which customers may use to redeem a free cupcake in-store. Free goods are frequent, but this one stands out because it’s a regular aspect of their operation. This isn’t a particular promotion; it’s something they do frequently. It’s easy, inexpensive, and does not require fans to jump through hoops.
How to Develop an Effective Customer Appreciation Strategy
A customer appreciation strategy is a part of your company’s overall marketing strategy. It rewards loyal customers while driving loyalty among new consumers by personalizing experiences and expressing genuine gratitude for their business.
Now, how can you develop a strategy that drives results? Let’s find out:
Financial responsibility
Without a clear plan, finalizing presentation ideas and funds for them is difficult. How much will you spend on marketing this year? Which department is responsible for the ne? A customer appreciation approach helps to allocate funds to worthwhile programs.
Accountability
Planning when and how to thank consumers ensures it happens. If you don’t have anything written down, it’s simple to envision yourself remembering to send the message or order the swag tomorrow. Customers aren’t contacting you to express their gratitude, so it’s usually the first thing to go, but it’s also one of the most effective methods to increase client loyalty. Adding a target to your efforts also helps to solidify the somewhat hazy concept of customer thankfulness, providing specific goals, activities, and expected outcomes.
Measurability
The benefits of client appreciation cannot be quantified if approached hastily and inconsistently. Keeping track of your client appreciation activities will allow you to illustrate the value of your time and money. It will show you which client appreciation campaigns are most successful and which are ineffective.
How to Measure Customer Appreciation Effectiveness
Here are some key metrics that you can analyze to measure the effectiveness of your customer appreciation strategy:
Customer Satisfaction Score
CSAT is a simple and common approach to assess consumers’ satisfaction with a single encounter, product, or service. It typically entails asking your consumers to score their satisfaction from 1 to 5, 1 to 10, or using emojis. The better the score, the happier the customer is. To get your average CSAT, divide the sum of all scores by the number of responses. Or you can use CSAT Software
Customer Effort Score
Customer Effort Score assesses how easy or difficult it was for your customers to attain their goals with your business. It prompts your clients to rank their effort on a scale of 1 to 5 or use phrases like extremely easy, easy, neutral, challenging, or very difficult. A lower score indicates a better customer experience. To get your average CES, divide the sum of the scores by the number of responses.
Customer Lifetime Value
CLV is the total revenue you may expect from customers during their whole relationship with you. It demonstrates how devoted, successful, and valuable your consumers are to your company. To estimate your CLV, multiply your average customer income per customer by your average customer retention rate and longevity.
Customer Churn Rate
CCR is the percentage of customers who discontinue business with you after a specific time. It measures how well you retain clients and their satisfaction with your value proposition. To calculate your customer turnover rate, divide the number of customers who departed by the number of customers you had at the start of the quarter.
Net Promoter Score
NPS assesses how likely your consumers are to promote your brand to others. It asks your clients to rate their chance of referring you on a scale of 0 to 10, then divides them into three categories: promoters (9-10), passives (7-8), and critics (0-6). Your Net Promoter Score (NPS) is the difference between the percentage of promoters and critics. A positive NPS shows that your consumers are more loyal than disgruntled.
How Can Call Centers Help Deliver Customer Appreciation?
According to a survey, 78% of customers have abandoned a transaction or still need to complete an intended purchase due to bad service. That’s why your contact center should consistently deliver an end-to-end customer experience; clients should be able to seek help at any point in their journey, from the moment they visit your website to making the most of your product. To help you out, here are some ways that call centers can deliver top-notch customer appreciation:
Personalized communication
Call centers can enhance customer experience by leveraging customer data to personalize their communication. This involves addressing customers by their name, recognizing their past interactions with the company, and providing tailored recommendations based on their preferences.
Timely and Effective Resolution
Demonstrating appreciation for customers includes promptly and efficiently resolving their concerns. This not only builds trust and loyalty but also underscores the value placed on their satisfaction.
Rewards and Incentives
Call centers can express gratitude to customers through various rewards and incentives. These may encompass discounts, complimentary products or services, or participation in loyalty programs, creating a tangible expression of appreciation for their patronage.
Customer Feedback
Call centers can show appreciation for their customers by actively seeking their feedback and using it to improve their products and services. This can help build trust and loyalty with customers and make them feel valued.
Track Call Center Metrics
Your team should recognize call center Key Performance Indicators (KPIs) that align with your business goals. Some call centers do not need to consider call time when money is the most crucial factor. For others, the average handle time may be critical. Many factors will influence the selection of essential metrics that relate to your firm, but here are some helpful call center KPIs to consider:
- Customer Satisfaction
- Average Wait Time
- Retention Rate
- Call volume
- Turnover Rate
Real-time Omnichannel Support
Every day, people utilize four distinct gadgets and communicate through multiple channels. Your call center should be able to provide omnichannel service, eventually transitioning into a contact center to give efficient, effective, and quick solutions. Customers should be able to access your contact center using any device, including a cell phone, tablet, laptop, or desktop computer. To achieve higher customer satisfaction and engagement levels, contact center agents should be able to reply to queries via email, SMS, social media platforms, and other unified communication methods.
Tools to Deliver Customer Appreciation
| Software | Description | Features |
|---|---|---|
| Referral Candy | Assists brands in reaching new customers through word-of-mouth marketing via refer-a-friend programs. | Provides unique referral link across all platforms Customers who share referral link with friend or family are rewarded Measures referral money, website traction, and acquisition through the referral program. |
| Rise | Provides an automated credit card store solution. | Allows businesses to tailor their loyalty programs based on client segmentation, order value, CLTV etc. Activities like redeeming points and introducing friends and family are simple. |
| Thankster | Powers the design interface, automation, and everything else needed to create the components that eventually end up in the mail. | Make personalized thank-you notes for customers, sponsors, and prospects by automation. Saves time and money. Offers appreciation promptly without having to send each card individually. |
| Zapier | Allows you to automate post-purchase thank you for a more personalized CX. | Ensure agents and self-service systems are updated and tailored to treat all clients like VIPs, irrespective of the channel they use. |
Now that you know what a customer appreciation strategy is and why it is essential, let’s look at a few of the best customer appreciation tools that can streamline your strategy:
Referral Candy
Referral Candy assists brands in reaching new customers through word-of-mouth marketing via refer-a-friend programs. Customers receive a unique referral link across all platforms, including the website, app, social media, and email. They are rewarded when sharing the referral link with a friend or family member. Furthermore, it may work with your existing marketing stack. The software also measures referral money, website traction, and customer acquisition through the referral program.
Rise
Rise provides an automated credit card store solution that increases client revenues and loyalty. Rise.ai, an easy-to-use Shopify software, allows businesses to tailor their loyalty programs based on client segmentation, order value, customer lifetime value, automatic rule sets, and more. It is also an easy-to-use app for customers. Activities such as redeeming points and introducing friends and family are really simple.
Thankster
Thankster is the software that powers the design interface, automation, and everything else needed to create the components that eventually end up in the mail. Companies and NGOs can make personalized thank-you notes for customers, sponsors, and prospects by automating the process with Thankster, saving time and money. This is an excellent approach to offering appreciation promptly without having to send each card individually.
Zapier
Zapier allows you to automate post-purchase thank you for a more personalized customer experience—and you won’t have to worry about missed follow-ups. You may also ensure that your agents and self-service systems are up-to-date and tailored, allowing you to treat your clients like VIPs regardless of their channel.
Conclusion
Successful call centers understand that technology only goes so far. You must create a good mix of talented staff and the appropriate technology to help the call center achieve its goals.
Providing excellent customer service is a continual process. Continuous improvement through data-driven decision-making and reacting to changing consumer needs are critical for staying ahead of the curve and increasing call center productivity. Invest in efficient call center technology and teach your team to use it effectively, following the best practices outlined above.
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Frequently Asked Questions
Customer appreciation entails acknowledging and expressing gratitude towards customers for their business and loyalty. It involves recognizing their value and contributions to the success of the business, fostering positive relationships, and building loyalty.
Expressing appreciation to customers is crucial as it strengthens the bond between the business and its customers, enhances customer loyalty, and fosters positive word-of-mouth referrals. It also encourages repeat business, boosts customer satisfaction, and contributes to long-term profitability.
Customer recognition is vital as it acknowledges the importance of each customer’s contribution to the business. It reinforces the value of their patronage, cultivates trust and loyalty, and promotes a positive brand image. Additionally, it encourages customers to continue supporting the business and fosters long-term relationships.
The objective of customer appreciation is to demonstrate genuine gratitude for customers’ support, cultivate strong relationships, and enhance customer satisfaction and loyalty. It aims to create positive experiences, foster goodwill, and differentiate the business from competitors by prioritizing customer-centric initiatives.
Gratitude is essential in customer service as it acknowledges customers’ contributions, fosters empathy and understanding, and strengthens relationships. It creates positive interactions, builds trust and loyalty, and promotes a culture of appreciation and respect within the organization, ultimately leading to enhanced customer satisfaction and loyalty.
