Customer Loyalty: Treasure, Build, And Inspire It!

Customer Loyalty

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Tough times may lay ahead. Even if this wasn’t the case, nurturing the relationships you already have is incredibly important. Customer loyalty can make or break your business, so it’s time to stop focusing on just acquiring new ones and explore ways to increase customer retention.

New Vs. Existing

You may have heard the old saying that it costs five times more to acquire a new customer than to retain an exciting one. While the exact number is highly dependent on the type of business you run and the volume of product you ship, it still holds true that retention is easier and more profitable. Why? Let’s look at some numbers:

  • The probability of selling to an existing customer is around 60-70%.
    • The probability of selling to a new customer is only around 5-10%
  • Existing customers spend upwards of 30% more compared to new customers
  • Existing customers are around 50% more likely to try one of your new products

Finally, a customer retention increase of only 5% has led many businesses to see an increase in profits, anywhere between 25% to 95%.

Customer Loyalty Tips

With a return on investment like that, it’s no wonder why nurturing customer loyalty is important. So, here are a few ways to inspire it:

Start From Day 1

The first time an existing customer hears from you shouldn’t be when you’re trying to upsell them something, though there are ways to make an upsell work (more on that next).

If you’re dealing with large quantities, you might want to set up some automation. A thank you or welcome message is the first step in a good relationship. Show them their business matters to you, and how much you appreciate them choosing you.

For bigger ticket items, you should get more personal. Write a thank you just for them, invite them to a more social meeting before the business part actually begins, or shoot a team video where everyone can welcome or thank them.

Check Out Another Blog: Branding: The Linchpin Of Your Business

Solve Problems When Upselling

You need to get creative here. Don’t just push every product you have to every customer, or something that is likely of no interest to them. You’ll quickly drive them away.

Instead, focus on the things you know about the customer and try to solve a problem. For example, if someone buys a car from you in July, follow up with them in October to let them know you sell snow tires, and even provide a service to put them on. It’s less likely to come across as a sales pitch!

Really Listen

Your customers are your greatest asset in more ways than one. If there’s a problem with a product, service, process, or anything else, they’ll often be the first to deal with it.

Create a survey, a poll on social media, or just reach out directly for feedback on your business. If a customer mentions a problem, be sure to actually solve it. Once you have, reach back out to them and thank them. They’ll feel appreciated, and your business just got stronger for all your other existing customers too!

Be Helpful

Every single thing you do, doesn’t need to be perfectly aligned with your product. But wait, let’s break that down a little bit more.

We don’t mean change the tone, values, or entire personality of your brand, your efforts should still focus on your target market. However, don’t be afraid to try and solve problems (or have some fun) in an area that falls a little outside what you consider to be your exact market.

For example, this means that a (to stay on theme) car dealership can create something like a Halloween decoration contest and post about it on social media. Just because it isn’t directly selling a car, doesn’t mean it isn’t beneficial.

The goal of marketing is to keep your product top of mind. The chance that a consumer will see a piece of your marketing material at the exact time when they have decided to make a purchase, is relatively low. The goal is that when they do decide to buy something, your brand is the first one they think of.

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