Do you know how to build loyal customers? Do you know how important it is for marketers to know this?
Here’s why. How would you like to have customers who are so loyal that they practically beg you to do business with you?
It’s not impossible. It’s something that can be learned and put into practice relatively easily. All it takes is a shift in how you think about customer engagement and a few simple changes in your marketing campaigns.
This post provides easy-to-follow methods on how to cultivate customer loyalty from the ground up. Whether you manage a small family-owned shop or a multinational corporation, it doesn’t matter – these techniques will work for you. PPC Marketing
What is Customer Loyalty?
Customer loyalty means a customer’s tendency to repeatedly purchase products or services from a particular company rather than switching to other competitors.
A loyal customer sticks with you, regardless of price or convenience. They trust your brand and are willing to stick with you even when other options are available.
Is Customer Loyalty Important?
Customer loyalty is extremely important. Loyal customers are usually more profitable and less costly to serve than new ones. They also help reduce customer acquisition costs, which are businesses’ expenses to attract new customers.
A recent study by Bain & Company found that a 5 percent increase in customer loyalty can lead to a 25% increase in profits.
What Can Loyal Customers Do to Your Business?
The average person only has a few loyal friends. The super-connected have hundreds or even thousands of friends, but most are fair-weather friends. They’re all for you when things are going well, but they disappear when you need them most.
The same is true of business. When things are good, everyone wants to be your friend. But when you go through a rough patch, you quickly find out who your real friends are. And this kind is worth their weight in gold.
From a business perspective, loyal customers are essential. They keep the lights on and help to pay the bills.
Three major things loyal customers do for your business
- They provide stability.
In an uncertain world, loyal customers can be counted on to keep coming back, month after month and year after year. This predictable revenue stream allows you to invest in long-term growth initiatives without fear of running out of cash.
- They act as advocates for your business.
They inform people about your brand, helping attract new customers and grow your market share. One of the most practical marketing strategies is also one of the oldest: word of mouth. When people are delighted with a product or service, they naturally want to tell others about it.
- They create value over time.
They become more valuable as customers and advocates as they continue to buy from you. They also provide valuable feedback to help you improve your products and services.