Customer Loyalty. Your ultimate target. You and your staff must live for customer loyalty. Everything you do must be aiming for customer loyalty. Period.
Lets see why.
It will cost you much less to have loyal customers than getting new ones
It’s usually 5 to 10 times more expensive to get new customers to your business compared to your existing ones.
In order to manage to make someone become a new customer, you need to spend in marketing activities, advertisement and special offers usually on discounted prices.
The existing customer is already brought to you so you do not have all these expenses and on top of that, it is a fact that they are going to spend more than a new customer, because they have already built their trust to your brand and your products.
Plus, they will visit your business on repeat, so you can do the maths.
Happy loyal customers will promote your business for free
Your brand reputation travels fast between customers, word of mouth is really powerful and the most effective marketing method.
Think about yourself; how many times have you suggested a business that you trust and love to the people you know? And when you do that, you feel confident enough for your suggestion because you trust the brand.
The result is that the other people will follow your suggestion because they trust you. All this, you do it basically for free for someone else’s business.
This is exactly what your loyal customers will do for your business. They will promote you with confidence to their people who will listen to them because they trust them for free.
One loyal customer is likely to promote their experience in your business to ten other people in average.
And you basically don’t have to use any particular effort on these events. Loyal customers are also your best supporters when it comes to a situation where someone blames your business with negative comments, they will be there for you to back you up without having actually asked them to do this.
Loyal customers will spend more in your business
It’s basic common sense and simple mathematics; someone who buys your products and services more than one time, will offer you higher profits than the customer who will only buy one time form your business.
Studies have shown that, compared to their 1st purchase, the same customer has the tendency to spend around 50% more in their 5th purchase and almost 90% more in their 10th purchase.
This is basically because they trust you and your products. And trust pays back. The longer they trust you, the higher your profits.
Loyal customers will help you to increase your product offering
When you want to expand your product line and offering, the best way to do this, is through your loyal customers.
They already trust you and your business and they are more open to try and provide you with very important and constructive feedback regarding the new introductions in your offering.
They will be honest with you as they feel close and usually part of your business, which will finally save you from trouble.
You can even offer them to try the new products you want to introduce in your business, before you make the final decision, so you can see their reactions and receive valuable feedback on time.
Loyal customers will also suggest products to you and this will help you and direct you to the right direction. Sometimes, instead of guessing, it is preferable to listen to your customers and fulfil their desires and make them feel listened and valued.
Always remember to keep a balance in all the above, as you don’t want to find yourself running like a headless chicken behind every customer’s specific desire.
That’s where you need use your critical thought and judgement and choose the best suggestions that will bring the best value to your customers and profits to your business.