Building Customer Loyalty
If you were to ask someone if customer loyalty was important for the growth and wellbeing of a business, they would most likely say yes without any hesitation. Customer Lifetime Value has been taught to be a vital source of revenue for a business, considering you do not have to work as hard to gain additional business from someone that is already had a positive experience with your company. The goal is to keep customers happy and continue to entice them to increase their spending with the business. You can do this through advertising, deals, and promotions. Although this seems like common knowledge, many business owners tend to neglect customer loyalty. They either assume not much work needs to be done to keep customer lifetime value high, or they become too consumed with trying to obtain new customers that they forget the old ones. No matter what the case may be, it is clear that customer loyalty is an integral part of a business’s growth. More businesses, especially small ones, need to increase the satisfaction of existing customers.
Customer Loyalty’s Long-Term Benefits
As touched upon previously, allocating time and effort to existing customers is usually very beneficial. The cost is low for marketing and advertising. It also costs less to keep an existing customer than to bring on a new one. Additionally, that customer ends up increasing sales. They are more inclined to come back because they have been there before and had a positive experience. They will continue to come back and spend more money. This will also increase word-of-mouth advertising. Long-term customers have a positive experience, and the more they go there, the more they will recommend your business to their friends and family. Think of it this way: If you go to a restaurant and you are delighted with the food and service, you will likely return. If you continue to be impressed, you will probably continue to return. Then you get to know the waiters and owners, and they begin to recognize you and ask you about your life each time you go. Suppose your coworker is looking for a new restaurant to take her family to. In that case, the odds are that you would recommend this place highly, sharing your many great experiences.
How To Increase Customer Loyalty
So now we know the importance of customer loyalty, but how to get customers to keep coming back? The key to remember is that you cannot market to an existing customer the same way you would to a new customer. Your goal is to make these customers be exclusive to you and choose your business over your competitors every time.
So, let’s revisit that restaurant example. You want your restaurant to be their go-to eating choice. You want them to bring their family friends and recommend it to everyone they can. Therefore, you look delighted when they walk in the door. As the owner, you go over to the table and ask how they are enjoying their meal while taking the time to talk with them for a couple of minutes. Maybe you throw in a free dessert here and there or let them know that you remember their favorite appetizer, which is a special that night. Little things go a long way and make the experience as good as the food. If they are unhappy, make sure you make it up to them, so they leave with a smile on their face and continue to come back and recommend your business to others.
But what if your business is a retail store where you don’t have the ability to check-in and serve the customers throughout a 90-minute experience. A good way to keep customers engaged is through paid advertising. This can include paid search campaigns, such as Google Ads, or Paid Social campaigns, such as Facebook Ads. These ads can include a discount promotion for members only, or you can create a rewards program and advertise all the benefits that come with being a rewards member. The whole goal of these promotions is not only to get these customers to continue to return but to show them that you both notice and value their loyalty. You want to show them your appreciation for being such a great customer. It reassures them that they have made the right choice by continuing to shop there and will most likely continue to do so in the future.
Paid Advertising and Customer Loyalty
You want to ensure that you build a relationship with your customer. With paid advertising, you can interact with the customer on a platform that is comfortable and convenient. Although direct mail and targeted email are both very beneficial, they are one-way forms of communication. Paid Advertising, however, is 2-way communication. Your customers can interact back with you. They can provide engagement and responses in real-time, which is very beneficial as a business. You can turn just a casual customer into someone who is now loyal to the business.
Make sure you also pay attention to the ad copy. You want it to be genuine and approachable. You don’t want it to be some formal sell that creates a disconnect. Additionally, there is a difference in tone when speaking to someone you just met versus talking to someone you’ve
known for years. They are existing customers, so you want it to be sound like you know them and that you are friends. A good way to write the copy is to imagine that you are telling your old friend about a great promotion going on at their favorite store and why you think it would be perfect for them. Don’t try to oversell or make false promises. You’ve already warmed up this audience; they don’t need the “hard sell.” Just be personal and give them some special offerings, so they don’t think they’ve gone unnoticed.
Customer loyalty is paramount, and it’s easy to grow. With these tips, you should be able to have your customers keep coming back. It’s also necessary to make sure that their experience is both pleasant online and in person. It would not be worth spending all this time and money on getting the customers to return just for them to leave angry due to a poor service experience. Lastly, it’s essential to keep the advertising constant. Even if it’s not your busy season, you should always have some form of continuous advertising. Paid Search and Paid Social campaigns are perfect because everyone is on Google and Facebook, so it’s a great way to promote deals for existing customers. If you need assistance, we are always one phone call away!