In a world where entrepreneurship is establishing a strong presence, many around us are planning to actualize their long-time dream of launching a business. Of course, with the thought of setting up an organization, the initial few things that pop-up in most people’s minds include capital, revenue, product, operations, etc. But there’s one critical factor many often overlook - building and maintaining customer loyalty!
Customer loyalty is a customer’s commitment to your brand. And it is achieved when someone purchases your product/service repeatedly and enthusiastically; that is, when they decide to always choose your company over others. It is literally that invisible hand which can bring in the sunniest days to your business or the gloomiest of all.
Now, let’s look at some of the reasons that justify the statement - ‘Loyal customers are the most valuable assets of any business.’
Why is Customer Loyalty important?
- Studies have found that 68% of sales come from existing customers. Therefore, existing customers are literally the treasure trove of a thriving business.
- According to research, 81% of customers trust recommendations from friends and family. So, if given proper service, they will unquestionably promote your business among their close ones.
- Plus, retaining existing customers is much more cost-effective than acquiring new ones because you have to splurge nearly five times of money to acquire a new customer.
Now that you know the nitty-gritty, let’s dive into the strategies that you can employ to build customer loyalty.
#1 - Turn social media into a weapon for success
In the 21st century, social media is a great way to connect with your customers. Through platforms like Facebook, Instagram and others, congregate all your customers by creating an online community.
This would keep them notified about your deals, help them in getting a glimpse before the official launch, and also inform them about the ongoing contests. You can also go ‘live’ and ask them questions, conduct polls, and even offer them freebies or other attractive rewards for engaging with your live video posts and content.
#2 - Reward your loyal customers with special offers
Who on earth doesn’t love personalized rewards?! So, brighten up your existing customers’ days by giving them special offers, sales, and discounts as a “thank you” for their business. This would not only make them feel appreciated and valued, but also create a strong bond between you and them. Quick tip: include an expiration date so that your customers are encouraged to make a purchase before the deadline.
#3 - Always ask for reviews
Apart from the demonstration effect, another thing that influences a customer to return back to you, is collecting reviews. Being authentic testimonials from real people, they are literally the cherry on the top! Plus, it not only makes your existing customers feel valued but also convinces a new customer to buy from you.
To wrap it up
There’s no doubt that carving out a place in the customers’ hearts and persuading them to put their faith in your brand won’t happen overnight. It’s a tedious process that requires your time as well as energy. But, if you give these tried and tested strategies a shot, rest assured, you’ll find immense growth in your brand.