Did you know that repeat customers or clients spend up to 67% more than new customers? Did you also know that it is up to ten times more expensive to try to attract new customers than it is to keep the ones already doing business with you? Creating customer loyalty, therefore, should be a top priority for businesses both large and small.
What’s a Loyal Customer?
We hear a lot of talk about retaining loyal customers and clients. What exactly is a “loyal” customer? Generally, a loyal customer is one who buys your product or uses your services even when they are not on sale. They return time and time again usually because they have gotten to know your brand, your sales people, or have come to trust what you sell or serve. During sales slumps, these are the people who keep a business afloat.
Once you have run the numbers and checked out your company’s database to identify your most loyal customers, it is time to do some work to retain those people. What you do really depends on the nature of your industry, but here are a few ideas to get you thinking.
Customers tend to remain loyal to a certain brand or business if they feel valued. Show this audience their value by offering some sort of incentive for being loyal. For example, many businesses offer some sort of loyalty card that allows a consumer to earn a reward after spending a certain amount of money or shopping a certain amount of times. Think about it. Dunkin’ Donuts and Starbucks keep their customers loyal not just due to the addictive caffeine they sell but also by offering rewards cards that tally up to free coffee! Even if the reward is small, consumers will recognize that they are considered “regulars” and will continue the trend.
Maintain Excellent Communication and Customer Service
One of the reasons customers return to the store is usually the service they received the first time around. This connection between employees and the public is critical to maintaining a solid customer base. One of the top qualities that customers report valuing is the communication between the business and themselves. Be sure to be open and honest about your products/services. That communication will go a long way in helping you brand your name as an honest business person and get you some loyal customers as well.
Create a Community
It’s always a good idea to ask your clients or consumers to give you feedback as to how you are doing. It can create a sense of community and that “we are in this together” feeling. Ask your clients for feedback on social media, newsletters, or through surveys that can give your business a good sense of what is going well and what you need to improve upon. Many businesses find that a sense of community is found through volunteerism, social media connections, and community outreach.
Are you looking to create loyal customers for your business? Of course you are! Check out our workshop on December 5th entitled, “How to Create Conversations that Will Gain and Retain Loyal Customers.”