loyal customer is a regular customer
According to consulting group Reputations Corporation, loyal customers spend 67% more than new ones. Also, it's more expensive to attract new users than to retain old ones (but that doesn't mean you shouldn't try), so it's important to develop a strategy that helps you increase the loyalty of existing customers. Such a strategy is actually very effective, because the word-of-mouth factor comes into play here - loyal customers are highly likely to recommend your product or service to their friends.
How to increase customer loyalty
Quality of service. An American Express study showed that 86% of shoppers are willing to pay more for good service, which is why customer experience is the number one priority for many entrepreneurial business founders, as a Bloomberg Businessweek study shows. And only after that come price and product quality.
So improving the quality of service and personalising it as much as possible seems like obvious but useful advice.
The study shows that 49 per cent of shoppers have made an impulse purchase after receiving a personalised recommendation; 44 per cent will become repeat customers after a personalised experience.
Study your purchase history. That way you can anticipate needs and suggest related products or services. Be proactive, offer them before customers start looking for them.
- Communication channels. If you communicate with your users, you can determine on which platform they are most likely to interact. Social networks, messenger chats, email newsletters. Focus your attention on these platforms, make sure the information is relevant and the response is quick.
- Develop a loyalty program. This could be a points program, a savings discount, discounts for referrals. Use the one that works best for your business project.
- Ask for testimonials. Look for them on social media, on special services, respond to them as soon as possible.
Invest in customer loyalty, it will strengthen your reputation, you will retain your existing customers, and in the long term you can attract new ones thanks to the testimonials and recommendations of your grateful customers.