Your competitors are doing better than you. Why?
Just because a customer spends a lot of money on your brand, it doesn’t mean they’re loyal to your business.
According to research, even clients who bring in a lot of revenue for a company are still buying from its competitors as well.
This happens because most marketing strategies and loyalty programs fall short when it comes to one key-aspect: keeping customers from going to other brands.
So let’s take a look at why your loyalty strategy shouldn’t just revolve around getting clients to spend more for your business, but also to spend less on the competition.
Why your business needs loyal customers to succeed
Did you know that increasing customer retention by just 5% can boost profit anywhere between 25% and 95%?
You might get a prospect to convert and buy a lot from you, but you still won’t keep them from reaching out to your competitors as well. And all that money could be redirected to your brand instead.
Simply put, making customers buy as often as possible from your brand (and your brand alone) is much more profitable than investing in getting new customers and maintaining a superficial relationship with them.
Loyal clients spend more than new ones – 67% more, to be exact. They stick around through hard times and they tell their family and friends why you’re better than your competition.
This type of word-of-mouth marketing is invaluable to your brand.
So how do you gain real, long-lasting loyalty from your customers?
3 simple ways to build powerful brand loyalty
What you want is a strategy that doesn’t only focus on customer acquisition, but also on retention.
Here’s how you can achieve this:
Keep your promises – and your customers happy
Most people will leave your brand over just one bad experience.
Whether your client is treated wonderfully or poorly – they’ll remember it.
So excellent customer service is a must. Make sure you’re easy to get in touch with, that you respond quickly, and that you reward your customers and express appreciation from time to time.
Most importantly, don’t go back on your word. Keeping your promises will show your clients that you value their time and opinions and that they can trust you.
2. Grow your business along with your existing customers
Are you making the mistake of focusing solely on new buyers?
When it comes to how you can improve your product or service, ask your clients for feedback, and listen. Really listen. Try to understand what features your most loyal customers would love to see – and then work on implementing them.
Don’t make the mistake of chasing new prospects and using all your resources to convert as many of them as possible.
If you want your existing customers to be loyal to you – be loyal to them as well. Nurture them and prioritize their needs over those of potential new buyers – obviously while keeping a close eye on the needs and wants of the new potential buyers as well.
3. Have a solid customer engagement strategy
The key to customer loyalty is high engagement. Highly-engaged customers buy 90 percent more often and spend 60 percent more per transaction.
Brand loyalty is the destination, customer engagement is the path.
Here are 9 steps that will help you to boost engagement with your client base:
- reach out through social media channels
- send out personalized messages
- share useful content
- encourage them to participate in reviews
- humanize your brand using video marketing
- ask them questions about how your product can be improved
- use simple surveys and online polls to get to know them
- don’t be sales-oriented when interacting with them
- offer free trials to show them more about your product
True brand loyalty is building a customer base that is emotionally invested in your business and its success. As a startup and even as an established company, your long-term growth is directly tied to how strong your client loyalty is.
So if you’re not already building a strong connection with your clients, the time to start is now.
If you want to learn more about how to achieve long-lasting customer loyalty, get in touch with us.