For some people, the be-all and end-all of a business are profits. But what is a business without customers? Thus, it is clear that the customers you have now are the lifeblood of your business. Making them happy should be your top priority.
Acquiring new customers is great for your company because it will help you grow. But here is a better idea, why not take care of your current crop of customers? It makes sense because it is seven times cheaper to sell to existing customers than acquiring new ones. Moreover, the success rate of selling to a current customer is 70% while attempting to sell to a new customer will give you only a 20% chance to succeed.
Customer retention – why your business should care
The most typical drawback for businesses is that they assume that if they have a strong product or service, customer retention will follow. If it were that simple, then most companies would be worth billions, but they are not. Having a great product may attract customers in the short-term, but when they do not see the value in being loyal to you, they will leave.
The biggest reason why a customer leaves a company is that they feel that the business does not care about them.
All companies need new customers, but the easiest source of income is the ones you already have.
- You will need less marketing
You have already built a relationship with your existing customers, so use that to your advantage. You no longer have to convince them about you and your brand. That means less time, effort, and money spent.
- Get better conversion rates
Your existing clients have already bought your products or services, so there is no reason to believe they will not buy from you again. That is if they were not disappointed with the experience. You have already done the hardest work, and that is to build trust. And, as you already know plenty about them, it is easier to know what their next moves will be.
- Higher profits
Who would not want higher profits? When you sell to existing customers, the focus will be less on the price. It becomes easier to upsell or cross-sell your other products.
- Room for improvement
Times have changed. It was easier to get consumers to be more brand-loyal a decade ago than it is now. Today, consumers have easier access to a wide range of competitive brand information, and brands big or small similarly have easier access. Consumers actively look for different brands and are willing to try other companies that offer similar products.
Still, this does not take away the importance of brand loyalty to the customer. Even if they are inundated with information, as long as they find that a brand they have tried has matched or even exceeded their expectations, they will remain loyal.
Consumers have more power now than ever before. They can go on social media to either praise your product or rant about it. You also cannot assume that your customer will be loyal forever.
If they are not happy with their experience, they will not hesitate to search Google and look for your competitors and then buy from them.
Take note that even the largest brands with huge budgets for advertising face the challenge of holding on to their existing customers.
This underpins the need for companies to become aggressive in expanding their customer loyalty initiatives. That is if they want to stay competitive.
Building customer loyalty
All consumers demand that their needs and wants be taken care of. They want to know that they are appreciated and understood as a customer on an intimate basis. They want sales or discounts that are adapted precisely to their needs. By developing a Customer Loyalty Program, you can provide your patrons this sense of being valued and needed.
- Build a customer loyalty program that addresses their pain points
Customer loyalty programs are not just offering them discounts in exchange for their loyalty. It should pay attention to the customers’ pain points and find solutions for them. That way you add value to their lives.
- Provide an omnichannel marketing experience
A great way to deliver brand experience is to offer customers that experience over multiple channels. The purpose of omnichannel marketing is to provide customers an enjoyable experience regardless of their preferred medium.
For instance, a customer using your website should have the same access to products and services, discounts, and promotions that you offer in your physical store.
- Referral programs
Referral programs give incentives to customers who encourage their family and friends to buy from you. It is a strategy that can help retain your customers and gain new ones as well.
- Use customer feedback to improve your products and services
In this digital age, customers can express what they feel about a brand faster and easier. And when they speak, brands should listen.
Asking for your customers’ opinions is one way to show them that you value them. Of course, you need to listen and incorporate their ideas.
- Personalized marketing
Personalized marketing is one of the most efficient mediums of communicating with your customer. It helps build trust and also allows consumers to distinguish your brand from your competitors.
Today’s consumers are very smart. They can tell if you are sending them generic messages, which they do not want. They now expect personalized messages that cater to their needs. You can even make them feel special as a real human being and not just a statistic by sending holiday greetings or birthday cards.
Making your customers feel like they mean the world to you will ensure their loyalty to your brand. Offering them perks for being a loyal patron can make them feel appreciated when they enter through your doors or visit your website.
In essence, customer loyalty is one of those foundation stones you need to put in place if you are going to establish a successful business.