About 80% of your company’s future revenue will come from just 20% of your existing customers, according to global research firm Gartner Group.
That’s why it pays to use customer loyalty in your marketing efforts to help grow your brand because it could cost you five times more to attract and retain new customers than it does to keep current and past ones.
The idea behind loyalty marketing is to value your current and past customers in a way that encourages repeat business. The probability of selling to an existing customer is estimated at 60 to 70%, whereas the probability of selling to a new customer is only five to 20%.
Loyalty marketing tactics involve building a loyal customer base through recognition and incentivizing purchases through reward and referral programs. These tactics help them feel loved and motivate them to come back for more.
Build a loyal customer base for your company through your marketing using these simple concepts.
Keep your customer experience remarkable.
Nothing inspires repeat business more than a positive experience with your company again and again. Providing a consistently good experience for your customers is a sure way to build a loyal customer base. It starts with that first touchpoint and basically never ends:
- Is your website easy for customers to navigate?
- Can you answer their questions and solve their problems?
- Do you respond promptly to their calls and emails?
- How friendly is your team?
- How easy is it for customers to cruise store isles?
- How long do they have to wait in line at the checkout?
- How flexible is your return policy?
- Do you value customer feedback?
Understand your customer’s view of real value.
To understand the real value of your products and services, you first need to know your customers and how to solve their pain points. If you offer what they think is incredible value consistently, they will continue to buy from you. Plus, your customers will probably tell other people about it too, becoming advocates for your brand.
Know how to nurture your customer.
Nurture marketing efforts remind your customers what you offer them and will continue to offer them, even if they’re not thinking about you when they see it. These messages keep your brand top of mind so that when the need arises, they know who to turn to. Nurture marketing needs to be timed appropriately and always offers value to your customers in a pleasing or entertaining way. Nurturing your current customers keeps them engaged with your brand.
Give loyal customers something in return.
Special incentives given only to loyal customers make them feel special and appreciated, part of an elite group. Things like savings discounts, exclusive events, loyalty cards, and more go a long way in helping you build a loyal customer base. It’s the reason why subscription boxes are so popular. They reward customers for their loyalty and encourage them to stay.
Never let customers ask twice.
Even though companies make mistakes, it’s usually how you rectify them that can save a customer relationship. If your customer isn’t one hundred percent satisfied, make sure your response is respectful. Do everything you can to correct the error and do it quickly. In most instances, customers will appreciate the effort and be more likely to forgive the mishap in the first place.
Your attention to loyal customers does not end after one transaction. No matter how many times they make a purchase, follow up with them. Find out their opinion. Check to see if they are satisfied. Ask how you could be of service. They’re sure to appreciate you for it.