How Better Customer Education is the Secret Ingredient for Customer Loyalty

explainer video, customer loyalty

Many eLearning principles are also highly effective when applied to the marketing front, especially when it comes to customer loyalty. While most think of customer loyalty as the percentage of wallet share you earn in any given customer’s pocket, today’s social landscape has altered what that loyalty really means. It’s not only about spend, but word-of-mouth advertising, engagement rates, and how likely a customer is to recommend you to others.

And millennial customers? They’re a new breed altogether. The generation that grew up on Apple products and instant gratification through social media expect a high degree of engagement from the brands they love.

Sure, Target has made headlines for saucy Facebook replies and Amazon holds the standard for customer service, but these big-name brands also need a secret ingredient to truly inspire customer loyalty: education. By ensuring customers know who you are, why you’re different, and what products you offer, customer education could be the secret sauce missing from your customer retention strategy.

Explainer Videos

Do customers really understand who you are and what you do? It might sound overly simplistic, but your mission statement might not be clear to every client. In that case, explainer videos–short, engaging, animated videos that define what you do, how you do it, and why you do what you do–can make a big difference in customer education and loyalty. According to a recent video marketing survey45% of businesses who use video say they have an explainer video on their home page. Click To Tweet

And…
83% say their home page explainer video is highly effective. Click To Tweet

It’s microlearning for your customers, and works well for the super busy, mobile first millennial generation who are much pickier with who they buy from. They don’t have a lot of time, so you need to quickly get across who you are, while also capturing their attention. Explainer videos work because they are short, to the point, and highly engaging, which are the same reasons microlearning works so well when it comes to training employees. As a result, customers will clearly understand and remember who you are and are more likely to make a purchase later on when they are in need of your service or product.

From a marketing point of  view, an explainer video on your home page will draw people in and keep them on your site longer, helping reduce your bounce rate, and also act as a highly engaging elevator pitch. One of the best examples of how an explainer video can skyrocket customer loyalty is Dollar Shave Club, which has over 22 million views on Youtube.

User Experience

Just like great instructional design behind great eLearning, your website must be designed to be as easy as possible for customers to use. Confusing and boring? They’ll navigate away. Interactive and interesting? They’re customers for life. Whether it’s an interactive product model where they can learn more about how to use their new gadget or a comprehensive listing of tutorials and product information, an educational-centered website that focuses on top-notch user experience can go a long way in making customers come back again and again–even when they have other choices.

Differentiation

Why should a customer choose you over your competitor? Customers are becoming less loyal overall: According to Accenture, 46 percent of consumers admitted they were more likely to switch brands or providers today than they were 10 years ago. Therefore, to inspire customer loyalty your organization needs to educate clients on what makes you different.

Starbucks is a staple on the power of gamification used as a core differentiator from other coffee shops. Their loyalty app generates roughly 9 million mobile transactions each week in the U.S. alone. The reason its so addicting for customers is the gaming mechanics behind it like earning stars and receiving rewards, which motivate customers to use the app versus their normal payment method.

Uber; AirBnB; REI: They’re all brands doing a great job at producing media that explains what makes them different. Using bright, snappy media (think quick YouTube videos) they draw clear lines in the sand to explain why they’re better and why it matters.

Customer loyalty is a combination of a lot of things, from great customer service to products that actively meet customers’ needs. But don’t overlook education and eLearning as a secret ingredient for success. By properly educating customers, they get to know you and your products and services–and you’re more likely to score a lifetime relationship with even the ficklest of consumers.


 

Want to know more about how to leverage the benefits of gamification beyond marketing?

This quick, free eBook hits on the core components of gamification to develop your employees and leadership, and how to tell if it’s the right move for your learning strategy.

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