Recently, the epic budget battle between customer acquisition and customer retention has been won by the former.
Studies show that acquiring customers can cost up to seven times more than retaining them, and a rule of thumb in business says that roughly 25 per cent of the marketing budget should be kept for nurturing existing clients.
Moreover, the same study shows that businesses with 40 per cent repeat customers generated nearly 50 per cent more revenue than similar businesses with only 10 per cent repeat customers. This means that, in the near future, keeping your existing customers happy might result in a bigger slice of the budget pie.
The Global Loyalty Sentiment Report by Nielsen shows which one attribute would encourage someone to switch brands, providers and retailers.
This report is a clear indicator of what customers care about when it comes to products they purchase across various geographical markets. Although it does not make things clearer with your customers, the report gives an indication of what your next step should be: research.
Find out more about your customers and what they desire so you can understand what it will take for them to stay loyal. Here are five things you can do to achieve just that:
(1) Listen to what your customers have to say
Listening to customer feedback and acknowledging it is one of the most simple yet efficient ways to increase brand loyalty. This is caused by the fact that your service or product constantly improves and it does so by figuring out what your clients want.
Sincerely ask for feedback through a web form, via a suggestion box on your website or on your social media profile. Finally, if a specific feature request has gone through thanks to that feedback, give credit where it’s due.
(2) Respond promptly to customers
Quickly responding to customers is a key tactic in keeping them happy and loyal. Keep them company along the way until their issue is resolved and keep a detailed account of your interactions with them.
If the customer comes back, you will have a history of your previous conversations and this will make them feel valued. If theyve had a special request that took a longer period of time to sort out, let them know the second it’s done and make them feel highly involved in the process.
(3) Organise a contest asking for contributions
A fun and engaging tactic for increasing brand loyalty throughout your customer base is through contests. People love competitions. You can build a web form asking for their most amazing experience with your product, or the funniest, or how it helped them reach a certain business or personal goal.
This way, you can find out how people are using your product or service and it also gives you the opportunity to hold interesting campaigns that really do wonders for brand loyalty. For example, some users can be featured in your content, ads, testimonials or other promotional materials and help highlight the relationship with your customers.
Continue reading more brand loyalty tips on page two…