How Retailers Can Build Customer Loyalty With Handwritten Notes
By Aaron Roy, Bond
Any retailer knows the importance of customer loyalty. According
to recent research from EY, almost nine out of 10 retailers believe a
loyalty strategy is key to their business success. But contrary to what the
industry seems to believe, the truth is that loyalty isn’t built with points — nor
the discounts, free shipping or exclusive offers that come with them.
In today’s world, cultivating true customer loyalty requires going one step further by actually making emotional connections with their customers — something that Forrester recently described as “one of the strongest unique drivers of loyalty.”
So, how can retailers tap into their customers’ emotion? One way is by sending them thoughtfully-crafted handwritten notes — a strategy that Bond found would actually make 61% of Americans view a company more favorably.
With that in mind, here are three ways retailers can leverage handwritten notes to build customer loyalty:
Acknowledging Special Moments On The Customer Journey
Along the customer journey, there are certain interactions that deserve recognition: for example, if a customer makes a very large purchase, refers new business, renews his/her membership or makes repeat purchases. Each of these interactions is a key moment to engage the customer and drive brand loyalty.
Many retailers already call attention to these crucial moments by sending follow-up emails, but they ultimately fail to have the same emotional impact as handwritten notes. The same Bond survey found that 81% of respondents regarded handwritten notes as more meaningful than email or text. It’s incredibly easy to delete an email, but very difficult to resist opening a personalized, handwritten note.
There’s a solid business case for handwritten notes, too. In a campaign this past fall, apparel brand Love Your Melon sent a handwritten note to customers after they made a purchase of at least $100. The result? The company noted a 160% increase in sales from customers who received handwritten notes compared to those who received thank you emails.
Apologizing For Bad Experiences
Over recent years, customer experience has taken center stage. It makes sense, too. ClickSoftware estimates that poor customer experiences cost U.S. businesses $83 billion each year due to defections and abandoned purchases. The company also found that 89% of customers who experience bad customer service will actually leave a brand for its competitor.
For this reason, retailers should take the time to send handwritten notes to their customers who had a bad experience, apologizing and offering some sort of compensation. Since such handwritten communication is often reserved for close personal relationships, this extra effort can show customers that the company values not just its customers’ business, but also them as individuals.
With brands being more conscious of cost of acquisition and lifetime value than ever before, the handwritten note is an essential tool that could make the difference between churning a customer or engaging the customer and building brand loyalty.
Thanking Customers For Their Patronage
In addition to reactively sending apology letters, retailers can also proactively send handwritten notes thanking customers for their patronage. If a customer is loyal to a company, the company should be loyal in return. Loyal customers deserve to be recognized in a way that makes them feel that brands value them just as much as they value those brands.
Many companies say thank you by sending small gifts or offering exclusive promotions, but it’s easy to go the extra mile. When sending a gift to a customer, including a handwritten note is a simple way to make him/her feel important, and less like one name on a long list of customers. In the same way, handwritten notes can include the special offers. We’ve seen that many customers even reach back out thanking companies for the thoughtful gesture.
This kind of proactive loyalty strategy has been shown to be particularly effective. The University of Florida’s athletic department, for example, sent handwritten notes from the school’s Head Football Coach, Jim McElwain, thanking season ticket holders who hadn’t yet renewed their seats for their patronage. This campaign resulted in an 80 times return on investment, with 15% of recipients renewing their tickets within just one week of receiving the letter.
In order to show customers that they matter to a company just as much as the company matters to them, handwritten notes can play an important role. Whether they’re sent to acknowledge a certain interaction, apologize for a bad experience or simply thank customers for their patronage, handwritten notes consistently prove their value and boost customer loyalty.
Aaron Roy is a passionate product leader who enjoys building teams that deliver incredible digital products into the hands of consumers and enterprises alike. He is the Chief Product Officer at Bond (acquired by Newell Brands), leading their product, marketing, and sales teams. Prior to that he was part of the founding team at 3DPrinterOS, the world’s first cloud management platform for users, files and 3D printers.