The lifetime value of a customer is a vital component in sustaining long-term success of your business. Some of the strongest brands have an army of loyal customers who keep coming back. Loyal customers don’t only keep coming back for more, but they also act as ambassadors for your brand, cultivating word of mouth marketing by telling their friends, family, and co-workers how much they love you and your products or services. This is why building customer loyalty is so important.
So, what is customer loyalty?
It takes great customer service and marketing tactics to not only attract new customers, but keep them coming back. It’s about customers being able to build a relationship with your brand. There are a lot of ways to do this, whether it’s through offering value by educating them on things that matter to them, entertaining them, or problem-solving for them. Ultimately, when you build customer loyalty, it’s sort of like having a team of marketers working for you for free!
Did you know…
The probability of selling to an existing customer is 60-70%, whereas the probability of selling to a new prospect is between 5 and 20%.
The cost of attracting new customers can be 6 to 7 times the cost of turning existing customers into repeat customers.
Here are a few tips for building customer loyalty within your business:
1. Add value to your customers.
You’re in business to solve a problem of some sort. Your products or services serve a purpose. Now, put yourself in the shoes of your customer, who is facing the problem you set out to solve. Let them know how your business will make their lives better or easier. Educate them on industry trends. Build up a reputation as you stay in front of them with valuable content so that when they need something in your industry, you’re the obvious go-to answer for them.
2. Stay engaged with your customers.
Whether it’s through social media, a newsletter, or something as simple as a thank you card, purpose to find ways to engage with your customers. The more opportunities you have to engage with them in a positive way, the more likely they’ll be to keep coming back to you.
3. Follow the 80/20 rule.
The 80/20 rule says that for every 10 engagements you have with a customer, 8 of them should add value to the customer and only 2 should be promotional in nature. Another way we like to phrase this is, give 80% of the time, ask 20% of the time. By publishing content that adds value to your customer’s lives you build trust and ultimately increase their loyalty towards your brand.
4. Keep them up to date.
People don’t like feeling like they’re missing out on things. The same goes for brand-customer relationships. Use platforms like your blog, social media, and email to keep your customers up to date on what’s happening within your business, what the latest deals are, or events you’re hosting. Sharing behind the scenes style content is a great way to build more of a personal connection with those who follow your brand.
Remember, without your customers, you wouldn’t be in business. If you keep your customers happy and engaged, your business will continue to thrive!