Building customer loyalty is not only a cost effective and profitable strategy, but in today’s business world it’s necessary. This is especially true when you remember that 80% of your income will come from 20% of your customers. If you think about these statistics it’s very surprising that so few people focus their marketing,sales or follow up on building customer loyalty and engagement.
I see it all the time in places like hairdressing salons. They will offer a great discount or incentive for new clients but if you are a current customer you have the privilege of paying full price. I’d really like someone to explain to me how this is building customer loyalty!
I can remember when I was a little girl and each week my parents would give me my pocket money. I’ve always been a lover of lollies (and I’m no different now!). So, as soon as I got my pocket money I would be off up the street to the little shop ran by a man called Mr Flick.
There were lots of shops in the street that I could have bought my lollies from, but I always went to Mr Flick’s shop. Why? Well for a start, he was friendly. He was always interested in what I was doing. And, a BIG reason I kept going to his shop was that he always put a few extra lollies into my bag more than what I had actually paid for.
He would always ask me “Is that all for you today?” Most of the time I just bought my lollies, but sometimes I might also buy something else for my mum or dad too.
Perhaps it’s time to rethink the strategies you use with your customers. After all, many experts will tell you that it’s five times more profitable to spend marketing and advertising dollars on customer retention than it is to acquire new customers.
Here are a few simple strategies you can use to improve customer retention and continue building customer loyalty.
1. Add Massive Value
Reward your customers for their loyalty. Make them feel special by giving them incentives, discounts or added bonuses every now and then. The type of things you can offer to increase the value you deliver are:
2. Inspire and Share Your Story
Even though you and I might be very comfortable with trying new products or buying products online, there are still lots of people who are very sceptical about passing over money or doing business on the internet. It’s especially important to do everything you can to share your personal experiences with your prospects and customers. This helps to build a personal connection and create that know, like and trust factor people are looking for when making their buying decisions. It’s common when you start your small business to resist mixing your personal life with your business life. Once you finally agree to share some of the more personal experiences in your life, suddenly your prospects will become much more responsive and you’ll notice your income increase.
When people know a little more about you as a person, it makes it easy for you to build rapport and connect at a deeper level with those who can resonate with your circumstances and experiences. As an example just take a look back to earlier in this email where I share a story of my childhood with you. Can you relate to that experience of mine? Does it help to build a deeper connection between us?
3. Create More Offers For Your Customers
Building customer loyalty is much easier when you have great products to offer. These could be the products from a company you are partnered with, or it could be products or training you have created yourself.
Once someone has bought something from you that they find great value in, they’ll be looking to buy whatever else it is you have to offer. It’s important to create a sales sequence and follow up that allows you continue to make offers for more products or services.
If you continually provide good value, service and information then your customers will be fine if you come along and make an offer to them for something else you endorse as being necessary or useful to their health, wellbeing or success.
Looking back now, I can see that it Mr Flick used all three of these strategies too, even all those years back. He gave me great value (an extra few lollies to a kid is awesome value!), he built a personal rapport with me and offered me more of what he had to offer to satisfy my needs. The thought of shopping anywhere else for my lollies would never have crossed my mind!
Take a few minutes today to consider what you are doing in your business to ensure you are building customer loyalty. No matter what you are currently doing, there is always room to ‘step it up a notch’. Try it and see what your results are – you could be very pleasantly surprised.
Here’s to your success!
P.S. Oh, and one last tip – is to tell your customers you appreciate them, just like….
I appreciate YOU!
Fay McLean CEO & Founder of Laser Connections, helps Medispas and Aestheticians get a reliable flow of new clients and grow their clinic online using a proven Digital Advertising System. Click Here to Apply for a FREE Strategy Session ($150 Value).