Customer Loyalty: 5 steps on how to build lasting relationships
Did you know that on average, it costs five times more to acquire new customers than it does to retain current customers?
Businesses often tend to focus on bringing more consumers through their doors, whether that’s in-store or online. However, before looking to broaden horizons, business owners should be ensuring that ‘leaks’ in their existing marketing strategies have been fixed before doing so.
Here’s 5 tips on how to build customer loyalty and relationships that last.
Know what makes your customers tick
If you want customers to remain loyal to your brand, you have to invest time in creating customised communications and marketing journeys that are relevant to different consumer personas. What might work for one customer, won’t necessarily work for another.
This also works as a great opportunity to ensure you know your customers – what they’re looking for and how you can best meet their needs. You might be surprised by what you find!
Get started by dividing your products and customers – for example, you might have a range that appeals to a younger market who are looking for value, whereas other products are more popular with an older audience, who tend to focus more on quality over value.
Ensure that you’re covering all bases and taking your customers on a journey through your marketing activities…and keeping it relevant!
Show that you reward loyalty
Consumers won’t stay loyal if it’s proven that it won’t be rewarded.
A clear example of this is car insurance – with costs going up each year, you’re somewhat forced to shop around. In this case, loyalty isn’t rewarded because it doesn’t need to be. Companies like this are aware that they will have a somewhat never-ending stream of potential customers.
For your regular everyday business, it’s best to create a rewards program.
Whether that involves sending a voucher or coupon code for money off a future purchase or more of a tier-based loyalty system that has criteria for each customer to meet, ensure you offer something at least to make your customers feel valued.
Think Starbucks – you earn points each time you purchase and eventually you’ll earn a free drink or food. Not only do customers feel justified in making purchases, but they feel that they’re working towards an end goal too (and often, they don’t think about how much they’ve had to spend to earn a free coffee!).
It’s not surprising that cost is the number one factor when it comes to customers staying loyal to one brand.
In a recent survey, 62% of global customers listed price as an important factor, more so than customer service.
As much as costs are increasing for businesses, you’ll be all too aware that costs are increasing for your consumers too. If they do have disposable income that they’re willing to part with, it won’t be as easy a decision as it might have been in previous years.
Therefore, ensure that cost isn’t an issue for your customers. If prices have increased, be honest and open about the reasoning behind this – as much as consumers want value and are influenced by price, they’ll appreciate the transparency and more than likely be understanding if you’ve had no choice.
Talk to your customers
Don’t shy away from your customers or leave them to their own devices – create conversation and engage customers on social media.
If you aren’t active across your social media channels, potential customers will not only see you and your brand as irrelevant, they could believe that you don’t in fact exist anymore. If a friend hadn’t posted in years, you’d think they weren’t using the platform anymore…it’s no different with businesses.
On the other hand, don’t post for the sake of it – ensure you’re being real and authentic. Show what goes on ‘behind the scenes’ of the business, give a sneak peek of new products, introduce members of the team to the public, or perhaps even do a ‘day in the life’ of what it’s like working in the business.
Show that you care
Yes, selling is important but post-sales is where things get interesting. You can make a purchase anywhere but what sets a business aside is how a consumer is treated afterwards.
We did earlier mention that price is the most important factor when it comes to loyalty? But that doesn’t mean that customer service should fall to the side.
Following a sale, be sure to gather feedback. Don’t just say you care, show that you care. How about offering an incentive for taking part in a survey or giving feedback too?
To encourage loyalty, you have to show that you’re loyal first.
Digital Marketing in New York – Get Your Success Strategy Right!
Bringing new business in shouldn’t be your top priority. Customer loyalty should be playing a vital role in your business’ success strategy.
At HV Media Group, we believe that your success is our success – we only want to see you reach the stars. And, we’ll make sure you get there!
Why not get in touch today about a FREE 30-minute strategy session? No obligations, just a valuable opportunity to begin your business growth journey.