The Value of Customer Loyalty and How to Keep People Coming Back

Landing a new customer is important. Keeping that customer will ultimately drive the success of any small to midsize business. The key is to understand the value of customer loyalty and how to keep people coming back to your company.

Not only is it much less expensive to retain an existing customer than acquire a new one, but successful retention efforts increase the lifetime value of each customer. In other words, if you focus too much on the acquisition, you could spend a lot of money on a customer who only makes one purchase. The cost to retain a customer is lower, while the ROI is higher.

When you have loyal customers, you gain steady, repeat business, which translates to more predictable revenue. Because they already know and trust your brand, loyal customers are more likely to try new products and services, making conversions faster and easier. Conversely, loyal customers are less likely to jump ship to a competitor.

When you build customer loyalty, you can leverage those relationships to improve the efficiency and precision of your marketing efforts, offering unique solutions that speak directly to customer needs.

For retailers, e-commerce sites, and restaurants, customer loyalty programs often focus on reward points and membership tiers. B2B, professional, and service-based companies like manufacturers, accountants, technology consultants, and landscapers should make customer loyalty a high priority as well, but the approach will probably be much different.

For these companies, providing an exceptional customer experience and delivering on your brand promises are essential parts of the overall marketing strategy.

Here are six ways to earn the loyalty of your customers

 1) Build Stronger, More Personal Relationships
Communicate before, during, and after the sale via personalized email, feedback forms, social media, newsletters, and more. Do the little things like wishing them a happy birthday. Keep in mind that a relationship is a two-way street. For example, instead of just asking for referrals, offer to give referrals. Donate to charities supported by loyal customers. Show that you value them as a customer.

2) Reward Loyalty with Financial Incentives
Discount your fees for retainers and repeat purchases. Offer flexible payment plans to encourage long-term loyalty. Offer financial incentives for referrals.

3) Improve Your Customer Service
How responsive are you to customer questions, complaints, and feedback? Do you have a formal process for responding to customers and resolving issues? Can customers contact you through multiple channels, including phone, email, chat, and social media? Does your website enhance your customer service process, or is it a bottleneck? Make sure you treat your customers in a way that makes them want to come back.

4) Provide Custom Product & Service Solutions
Customization adds value to your products & services. Creating tailored product solutions and personalized services that are unique to your clients can increase customer satisfaction, trust, and loyalty.

5) Use Statistical Data to Personalize the Customer Experience
What has the customer purchased? How frequently do they do business with you? Do they engage on social media, provide feedback, or testimonials? What are their communication preferences? People expect marketing and the customer experience to be tailored to them, and both can be personalized when you collect and apply the right data to your strategies.

6) Formalize a Customer Loyalty Strategy
Use what you learn from your customer feedback, and statistical data – to create and implement a customer loyalty strategy that aligns customer needs with your business goals.