As companies continue to infuse a substantial amount of capital into their marketing efforts to gain new customers, they tend to spend much less to drive customer loyalty. About 80% less. But that does not mean customer retention is less important, it is just that it simply costs less.
Winning over new customers costs 5 to 6 times more than keeping them. Marketing teams may be the “glamour” teams, but they share the hard lifting equally with customer care teams. One bad experience can turn a customer from loyal to a deserter.
Faithful customers bring in nice profits. As per a study made by Bain & Company, an increase in customer retention rates by 5% can increase profits by 25% to 95%. They engage in repeat purchases over a long period.
For strategies on how to drive customer loyalty, keep reading.
Strategies for driving customer loyalty
Here are some of the strategies most companies use that you can learn from.
1. Communicate regularly.
The act of sending emails, SMS, or messages on social media is the simplest way to drive customer loyalty. Communicating regularly with clients shows them that you care about them and value their feedback.
Additionally, a relationship does not end after the customer makes a purchase. Stay in touch with them. Reaching out as one human being to another keeps customers happy.
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2. Give them a tempting offer.
In the 1972 movie The Godfather, Don Vito Corleone had his way all the time because he always gave an “offer they can’t refuse”. Similarly, if you give something so tempting that they cannot refuse it, then you can get lots of loyal customers. This can come in the form of bundles that only you can offer, or loyalty cards, or referral programs.
Exclusivity also helps. If people know that your business is the only entity that can provide these exclusive offerings, they would most likely stay.
3. Try to resolve issues as quickly as possible.
A good strategy to employ is to resolve issues with less friction and minimal effort on the part of the customer. You can set up a website wherein customers can find most of the answers they are looking for. Provide easy to find FAQs, online forums, and a knowledge base. Solving customer issues on time will make them stay.
4. Listen to your customers.
Most companies set up communication lines that would supposedly connect them to their customers. But do these companies use them? Some do not even bother to respond, which frustrates the customers all the more. Here is a tip: listen to them and understand what they are saying. Listening to what they say allows you to understand their pain points. If you know their pain points, then you can formulate your plans effectively with these points in mind.
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5. Have a great product that they can use.
Of course, do not forget your product. It is why your business exists at all. Superior customer service can only take you so far; customers come to you because your product is the best. Having a great product will increase word of mouth, which in turn can drive customer loyalty.
Always feature a client testimonial on your site. People trust word of mouth more than any form of advertising. A client testimonial page allows visitors to your site to learn about what their fellow customers say about your product. This builds trust for you.
Conclusion
Driving customer loyalty is really about always being there for your customers. All companies are susceptible to falling victim to the pressures of the market. But if you use these strategies to maintain customer loyalty, you will be in a better position to survive a very competitive market.