Entrepreneurs often emphasize the importance of getting loyal customers, and for good reason.
According to RJMetrics, the top 10% of customers are likely to spend 3x more per order than the entire 90%, while the top 1% of customers are likely to spend 5x more than the other 99%.
And, well…this just makes sense.
After all, brand advocates will return to your store frequently and are likely to buy more, right? So, customer loyalty comes with a lot of perks in terms of profits and helping you reach sales targets.
If you’re still not convinced, here are some reasons why you need to focus on customer loyalty and how you can get started.
1. Loyal customers promote your brand
Customers that love your brand are likely to tell their friends and family about it too. After all, people talk about their positive experiences of eating in restaurants, watching movies and buying clothes. These experiences are mentioned in everyday conversations or posted on social media.
In fact, consumers trust recommendations from those that they know. According to ReferralCandy, people pay 2 times more attention to friends’ recommendations than from other sources.
2. Loyal customers buy more
Loyal customers buy more from the brands that they love.
They are confident that their needs and expectations will be met, so they don’t hesitate to make a repeat purchase.
In fact, 77% of shoppers have maintained a decade-long relationship with specific brands. Meanwhile, 60% of loyal customers buy often and 50% will buy more products from their preferred stores.
3. Loyal customers help forecast sales
How can you predict the sales numbers for next month or next year? How many customers will buy from your store?
The problem for new stores is that they can’t forecast sales. More established businesses easily avoid this issue by building a loyal customer base. This enables them to collect data on user behavior which they can use to improve sales and marketing efforts.
How to get started with customer loyalty
At this point, we bet you’re already convinced to focus on customer loyalty. Now, how do you make customers loyal? Here’s what you need to know:
Launch a loyalty program
Show customers how much you appreciate them through discounts, promos, and freebies through a loyalty program. The perks of staying loyal to your brand should incentivize customers to continuously patronize your products and keep returning to your online store.
For example, the Costa Coffee loyalty program, otherwise known as Costa Coffee Club, lets users earn points, get invites to special events and free wifi in exchange for their app. Enabling customers to claim rewards for continuously patronizing your brand is one way you can make more sales.
Buyers are more likely to trust businesses that offer fast and efficient customer service.
When purchasing a product, we want to interact with sales reps to make the right choice and have our questions answered. We want to view product demos and receive informational marketing material to ensure that our money is well-spent.
Having said that, businesses should invest in improving communications by enabling live chat, posting contact information and responding to emails and DMs. If we encounter an issue with a product, we’ll remember brands that help us resolve these issues.
Eventually, this leads to more loyalty and purchases in the long-run. Hubspot found that 93% of shoppers were more likely to be loyal repeat customers with businesses that offer excellent customer service.
Post quality content
An interesting blog and an entertaining social media presence can help your business stay in the back of your customers’ minds. You can encourage customers to return to your website by publishing relevant content related to your industry and creating compelling landing pages.
For example, Glossier is a beauty brand with a popular blog called Into the Gloss. Their blog posts feature interviews with dermatologists, beauty trends and lists of their favourite products.
Posts like “Our Favorite Products: January 2020 Edition” and “The Best Creams To Slather Over Your Papery Body” help consumers make informed purchasing decisions. It may even incite curiosity and encourage them to try out a product.
There are a lot of cookie brands in the market but Oreo has managed to stand out from the pack thanks to their thriving social media presence. They have videos on “How To Make Oreo Chocolate”, as well as pictures of Oreo brownies, cakes, and flavoured cookies.
Since Oreo is the main ingredient of their featured recipes, followers regularly return to the supermarket to buy their products.
Ready to boost customer loyalty?
There are a lot of perks to prioritizing customer loyalty.
You get more brand advocates, profits and the ability to forecast sales. After all, you need to build a loyal customer base to ensure the stability and growth of your business.
To boost customer loyalty, consider upgrading your customer service and content marketing. Customers will return to brands with a social media page or website that offers interesting content.
How will you boost customer loyalty? Let us know in the comments.