Customer loyalty is important! Today, many organizations have separate departments dedicated to brand and customer loyalty. Why? Customer retention is more profitable than customer acquisition.
- A study by Harvard Business School revealed that new customers cost 20-40% more to gain than old customers are to retain
- According to a survey conducted by Gartner 80% of your future revenue comes from 20% of your existing customers.
- Repeat customers are more likely to spend twice as much as their original expenditure after they have been a customer for more than two years a Harvard Business School research revealed.
While most small business owners (entrepreneurs or solopreneurs) focus on attracting new customers, the key to increase business sales lies in retaining the existing customers.
If you too want to create a large database of repeated customers, follow these tips that will help you to create customer loyalty towards your brand:
- Build Your Product As Awesome As Humanly Possible
A business is built around a product. Your customers purchase that product. And you market the product. This proves that a product is a BIG DEAL! It is the foundation of any business.
Retaining customers will be an impossible task if the product you have built is not top-notch. You can always improve your products, but you must offer the best you possibly can.
- Give your customers Love, Attention & Care
Customer service is as important as the product. It can be vital for the health of a business, depending on your specific industry. It is a concept that should be integrated into every facet of the business. From product design to marketing strategies, everything should be created with a customer-centric approach.
Some customers care more about how they feel like a customer than how your product performs.
- Customer Loyalty Programs
According to a survey by Harvard Business School, online loyalty programs are stronger online than brick-and-mortar loyalty programs.
One of the most brilliant customer loyalty programs is the Amazon Prime membership. It is a subscription-based service with annual fee offers. It offers its subscribers free-shipping and streaming capabilities through Prime Video. The program had proved to be a great success for Amazon.
- Unique Experience for Customers to make them feel special
Every customer wants more than just a product in return for a purchase. However, offering customers a unique experience sometimes requires more than just discounts alone.
Starbucks offers its customers a unique experience by providing their coffee in a mug with their names on it. It also provides its customers with one of the most successful mobile apps ever. The Starbucks app is used by around 23.4 million people. (source: https://www.adweek.com/performance-marketing/the-most-popular-mobile-payment-app-isnt-apple-pay-its-starbucks/)
Just like business success, customer retention is more about a mindset. Creating great products is also a mindset. The existing customers are like a gold mine if only we realize how invaluable they are for the business. To apply these tips and see your customers become loyal towards your brand.
Adopt the mindset of a customer retention master with our Everything about Entrepreneurship course. To know more about this course and how it can help you, click here: https://www.badabusiness.com/?ref_code=ArticlesLeads