Customers are the lifeblood of every business; thus, it is critical to continue generating leads and maintaining existing customers. However, doing so is frequently a source of anxiety for firms, with more than one-third citing new business generation as their top concern.

The economy is constantly changing, and it is critical to preserve your consumer base even when times are tough. As competition increases, retaining your customer base is becoming more challenging and exponentially important.

What is Customer Loyalty?

Customer loyalty is defined as a customer’s dedication to your brand. A devoted consumer will always choose you above the competition, whether it’s due to your exceptional customer service, unrivaled product variety, or another method to distinguish yourself. Business owners must develop ways to maintain their consumer base without competing only on pricing. There are a few key ways to maintain your customer base.

1. Utilize Various Lines of Communication

Frequent contact with your customers keeps you in their minds and allows you to pass on crucial information. It is important to know which platforms and methods of communication are best for them. Whatever communication channels your company uses, it’s critical to ensure that what you’re doing is beneficial for your customers. Their capacity to speak effectively with you will aid in maintaining their trust and loyalty.

Someone should be available to answer as soon as a consumer sends you a message via Facebook, email, Instagram, or your online chatbot. Streamlining communication may mean tapping into the benefits of outsourced call centers such that professional support representatives provide customers with round-the-clock support. Moreover, you should have scripts prepared and a method in place to manage any form of engagement, whether it’s a simple question or a complex problem, to help streamline communication.

2. Strong Customer Service

To cultivate a loyal client base, you must provide a memorable customer experience at each stage. This journey typically starts with your website, which should be user-friendly and mobile-friendly, and progresses to direct client interactions and after-sales support.

Specifically, your client service should be excellent. Clients want prompt, knowledgeable responses, problem resolution, and cautious direction. Your marketing approach also plays a role in providing excellent customer experiences.

Remember to pay special attention to the quality of your product. Offering a high-quality product is the most powerful weapon for a growing company competing against established corporations. It will be difficult to recover if negative reviews begin to circulate. In this case, quality can either save or sink your brand.

3. Social Media Presence

Customers and organizations can now exchange information and engage in conversations thanks to social media. There are excellent ways for businesses to reach out via Facebook, Twitter, Instagram, LinkedIn, and other networks. This communication can range from online customer service to leveraging social media to gain insights into your audience. Your industry, target audience, and preferred mode of communication will determine which ones perform best for you.

Millennials and Generation Z spend more time online than prior generations, making them more susceptible to social media influence. In general, social media can be a valuable tool for staying on top of current trends, obtaining insight into what your consumers truly believe, and ensuring long-term client loyalty.

4. Special Promotions and Offers

Using cutting-edge analytics technology, businesses may offer customers discounts on things they buy regularly, as well as products that complement previous purchases. Offering a special discount, whether for college students, veterans, or senior people, is a terrific way to recognize (and retain) certain parts of your client base.

Discounts can help persuade customers to buy from you during traditionally quiet periods. For example, a movie theater that offers $5 Monday tickets or a restaurant that offers a 10 percent discount to students on weeknights. Knowing that they can obtain a better bargain on a specific day or during holiday seasons can assist you in building a loyal consumer base.

5. Loyalty Programs

What better method to keep a loyal customer base than to express your appreciation? Clients appreciate businesses that go out of their way to thank them by giving something back.

Consider rewarding your customers with extra incentives like discounts, additional services, and exclusive products.

This can be accomplished through the use of a point-based loyalty program. A heads-up about impending releases and changes, along with an “early bird deal,” may also suffice. People appreciate an exclusive offering or a sneak peek since it makes them feel like they’re a part of the gang. Another possibility is to provide special deals or even a sales commission to consumers that drive new business.

6. Brand Collaborations

By partnering with other companies that provide comparable services, you can not only reach a new audience but also potentially offer more to your current clients. This approach is excellent for increasing your exposure and providing more options to your existing clients.

For example, if you run a veterinarian clinic, you may collaborate with a local pet food store. This will bring your company’s name to the attention of the pet food store’s customers and vice versa. Collaborations can also apply to your company’s charitable efforts. By informing your consumers that a portion of their purchase will be donated to a specific charity, you demonstrate your dedication to your community while also increasing the organization’s exposure.

The Value of Customers

The value of your customers is a crucial factor in the value of your company. Analyzing customer profitability and maximizing a customer’s lifetime value is critical to every firm. To expand your customer base, you must maintain continual contact with both new and existing customers.

The more value your company can provide, the more likely it will remain loyal. Maintaining a deep understanding of your customers’ challenges and worries, as well as taking steps to build your relationships, can mean the difference between falling behind and thriving.

A Likert scale is a psychological measure for assessing attitudes, values, and opinions. It works by having a person fill out a questionnaire in which they must rate how much they agree or disagree with a series of assertions. Rensis Likert established the Likert scale in 1932, and it is named after him. Likert scales are the most popular Type of scale used in survey research.

Examples of Likert Scales

Likert scales are essential because they provide multiple pre-written answer possibilities that apply to a wide range of circumstances, from customer satisfaction to public opinion research, in addition to the granularity they bring to survey research. For example, the ‘disagree to agree’ Likert scale (shown below) can be used to ask respondents to score their level of agreement with statements on brand affinity, political beliefs, and other topics. The following are some of the most used examples of 5 point Likert scale:

Agree to Disagree Likert Scale

•       Strongly Disagree
•       Disagree
•       Neither agree nor disagree
•       Agree
•       Strongly Agree

Satisfaction Likert Scale

•       Very dissatisfied
•       Somewhat dissatisfied
•       Neither dissatisfied nor satisfied
•       Somewhat satisfied
•       Very satisfied

Likelihood Likert Scale

•       Very unlikely
•       Somewhat unlikely
•       Neither likely nor unlikely
•       Somewhat likely
•       Very likely

Good to bad Likert Scale

•       Very poor
•       Poor
•       Average
•       Good
•       Excellent

Frequency Likert Scale

•       Never
•       Rarely
•       Sometimes
•       Often
•       Always

 DATA AND ANALYSIS FROM A LIKERT SCALE

 Researchers frequently use surveys to assess and evaluate the quality of products and services. A standard classification format for studies is the Likert scale. Respondents rate the quality of a product/service on a scale of high to low or better to worse, using two, four, five, or seven levels.

For further examination, researchers and auditors usually arrange acquired data into a hierarchy of four basic measurement levels – nominal, ordinal, interval, and ratio measurement levels:

•       Nominal data: is data in which the answers are grouped into variables but do not have to have quantitative data or order.
•       Ordinal data: is information that can be sorted or classified but cannot be measured in terms of distance.
•       Interval data is a type of aggregation data in which orders and distances can be measured.
•       Ratio data: is a type of interval data that is comparable to interval data. The sole distinction is that each data set has an equal and definitive ratio, whereas absolute “zero” is viewed as a point of origin.

The examination of the nominal, interval, and ratio data is often straightforward and transparent. Ordinal data is used to evaluate data, notably in surveys with Likert or other scales. This isn’t a new issue. In survey analysis in numerous applied fields, the usefulness of treating ordinal data as interval data is still controversial. The following are some important considerations:

Statistical tests include: Because parametric statistical tests are more powerful than nonparametric alternatives, researchers sometimes consider ordinal data interval data. Furthermore, parametric test inferences are simple to comprehend and provide more information than nonparametric tests.

Concentration on Likert scales: However, treating ordinal data as interval data without first considering the data set’s values and the study’s aims can lead to misinformation and misrepresentation of survey results. Researchers prefer to treat ordinal data as interval data and concentrate on Likert scales when analyzing scalar data.

For data inspection, use the median or range: When the data is on ordinal scales, a universal guideline implies that the mean and standard deviation, like any parametric analysis based on the normal distribution, are meaningless parameters for detailed statistics. The nonparametric test is performed on data using the appropriate median or range.

Best techniques for assessing Likert scale results

Because Likert data is discrete, ordinal, and limited in scope, there has long been a debate about the best logical way to evaluate it. Parametric and nonparametric tests are the first two options. The following are general descriptions of the benefits and drawbacks of each style of analysis:

Parametric tests presume that division is done in a consistent and orderly manner.

Nonparametric tests do not presume that division occurs in a regular or unbroken pattern. However, there are fears that the ability to notice a difference when one exists would be harmed.

 Which is the most suitable option? When it comes to analyzing data from a survey that employs Likert Scale questions, this is a fundamental decision that a researcher must make.

•       Many research has attempted to answer this topic over the years. However, they tend to examine a small number of alternative distributions for Likert data, causing the conclusions to be less generalizable. Simulation studies can now properly analyze a wide range of distributions because of advances in computational capacity.

•       The researchers discovered 14 different distributions that are typical of actual Likert data. To test all conceivable combinations of the 14 distributions, the computer software extracted self-sufficient pairs of samples.
•       For each of the 98 distribution combinations, 10,000 random samples were created. To compare the efficacy of each test, the samples’ pairings are evaluated using both the two-sample t-test and the Mann-Whitney test. The study also looked at various sample sizes.

•       The results reveal that the Type I error rates (false positives) for all pairs of distributions are incredibly close to the target numbers, indicating that if an organization employs any of the studies and the results are statistically significant, it does not need to be concerned about false positives.

•       The results also reveal that the difference in power between the two tests is minimal for most combinations of distributions. If a discrepancy exists at the population level, each analysis has an equal chance of detecting it.

•       There are several pairs of special distributions where the two tests have different power. If an organization does two tests on the same data and the results aren’t the same (one is significant, the other isn’t), the power difference affects just a tiny percentage of cases.
•       The decision between the two analyzes is, in general, a loop. When a company has to compare two sets of five-point Likert data, the analysis technique usually doesn’t matter.

•       Both parametric and nonparametric tests consistently provide the same level of protection against false negatives and false positives. These tendencies hold for groups of 10, 30, and 200 people.

Rather than assuming that an experience was satisfactory or that a respondent will positively react to a statement, researchers should ensure that the report or statements being evaluated are clear, the answer options are distinct from each other (as demonstrated in the above pre-written choices), and the scale encompasses all possible options.

About the author:

Lori Gillen is a Blogger/Content Creator who is specialized in the field of Digital Marketing & Data Analysis with 5 years of experience. Currently working at PPCexpo as a Senior Content Creator.

In case you’re not aware, statutory compliance is for companies that help them in operating responsibly. This is done by obeying the rules that are set by the governing body of the respective area where the organisation functions, especially regarding the treatment of their employees. Furthermore, any organisation regardless of its size or stature should comply with respective labour laws laid down by the governing body, which will help to ensure the welfare of its employees. 

It should be known that statutory compliance for businesses is massive rules & regulations that are not easy to follow. Furthermore, these rules & regulations are ever-changing, which is why companies need to keep themselves updated all the time. 

The Significance Of Statutory Compliance

Every state or country has its labour laws that businesses have to follow. All companies must abide by the laid-down rules & regulations. Due to non-compliance, there can be several problems such as fines, penalties, legal ramifications and so on. Such is the reason why companies nowadays are investing their time, effort and money to meet statutory compliance, with the help of professional payroll companies in the UK. 

From professional tax to minimum wage taxes – everything is kept updated with the help of payroll service providers. 

Does Statutory Compliance Change With The Type Of Organisation?

No. It doesn’t matter if a company is an LLP, a partnership firm or a public limited – statutory compliance holds the same for all. Since all of these organisations are hiring their employees and paying their salaries, they have to comply with the respective labour laws. 

The Consequences Of Not Properly Complying With Statutory Compliance

1. Loss Of Goodwill For The Company

The primary reason why most businesses stay operational is that they are trusted and known by their customers. Due to statutory non-compliance, there can be a loss of integrity & trust from the purview of the customers. As a result, it stains their reputation because customers will then doubt the organisation’s authenticity. 

Even though any financial loss such as a fine or penalty due to the non-compliance can be handled easily, any criminal proceedings against the company for non-compliance will hurt the goodwill of the business. Loss of goodwill will hurt the company not only in the short-term but long-term as well. 

2. Suspension Of Licenses

Businesses need certain licenses to be able to operate with the standards of the industry they’re in. Any statutory non-compliance can easily cause their licenses to get suspended – either permanently or temporarily – affecting the company’s current operations. That’s why it’s prudent to opt for professional payroll outsourcing companies in the UK. 

3. Penalties To Bear

Penalties or fines are the common consequences of not complying with statutory compliance. Since there are numerous acts under statutory compliance, the penalty will also vary based on the type of non-compliance the company has committed. If any organisation fails to pay the respective fines within time, the fines will continue to collect over time and thereby leading to major losses within the company.

4. Loss Of Employees

It’s a psychological aspect of human beings of not associating with things that are morally or ethically wrong, and the same concept applies here as well. Employees will not like to associate themselves with an organisation that doesn’t comply with the statutory rules & regulations. As a result, employees will leave the company, leading to the loss of essential talent within the company. Moreover, the company will also face difficulties in hiring new employees because of the stained reputation. 

However, the good news is that – professional payroll service providers can help companies avoid all these above-mentioned issues and thus focus on the core competencies of the company. Statutory compliance will not be a headache anymore with payroll outsourcing services. 

Starting a new business is always an exciting time. You anticipate all the ways your business will succeed, and if you start it off right, it will. One of things that many new business owners don’t think about right away is hiring a CPA. They consider marketing, client retention, sales, and even social media. However, they make the mistake of thinking that they only need an accountant come tax time when nothing could be further from the truth. A great CPA will offer many services that can benefit startups from idea to execution.

Set Up Your Business Correctly

An accountant can help you set up your business structure and the finance side of things before you even start making money. They can help you decide what to do with your start-up capital and help ensure you do everything by the books. Nothing is worse than getting started only to realize you needed a different structure. Many businesses start as LLC but may need to be an s-corp or other type of business instead.

Save Hours of Time

Having an accountant on hand can save you a lot of time. When you’re starting a business, time is already a precious resource that you can’t make more of. Most startup ventures have their owners working long hours already. It’s worth the money to invest in an accountant to handle the financial aspects of the business. This time saved means you can focus on the most important tasks for your business instead of all the little things.

Save Tons of Money

A good accountant will cost a pretty penny. But the money you save later on will more than make up the cost of hiring them. Accountants know all the fine details of the tax code to ensure you are getting every deduction and credit you are owed in addition to putting all the income and expenses in the right places. They make sure you don’t owe too much come tax time. Those savings add up and reveal why they are such a valuable resource.

Gain Insight Into the Financial Health of Your Startup

Not only can an accountant give you a snapshot of your financial health on any given day, they can also create important documents to give to your investors and clients as needed. An income statement simply shows the income and expenses your startup is incurring. A balance sheet will show your business finances on a specific date. And a cash flow statement shows how much liquidity you have in your business. Each of these documents gives you valuable insight into how well your new business is doing.

Help You Set Up a Business Budget

Not sure how to decide where all the money should go when it comes in? A CPA can assist you in creating your very first business budget. Since they are well-versed in all things applying to finances, they can easily help you create a working budget. This is one of the many pitfalls startups make. They don’t create or follow a budget. While the marketing for accounting firms might say they do it all, it’s important to find out if they really do. You want one who can manage all your finances in one place to simplify the process for you. It’s more difficult to hire a bookkeeper who works for a different firm than your accountant. Make sure you ask about all the different things they can do for your startup.

Avoid Expensive Mistakes

No one wants to end up owing too much in taxes. And no one wants to owe interest on tax they forgot to pay because they made a big mistake. Hiring a CPA helps to mitigate costly mistakes. When you use a professional accountant, you’ll be better prepared throughout the year to file the different taxes that the government requires. Additionally, you’ll be better prepared to avoid costly mistakes. You don’t know what you don’t know, but at the end of the day when it comes to taxes you are still responsible for it.

CPAs Help You Comply

Complying with industry regulations is about more than saving you money. It can also keep you out of jail. Tax fraud, tax evasion and other tax compliance issues are one of the reasons many businesses go under. Hiring a CPA helps you comply with all the regulations so your startup can get up and thrive.