Customer retention is a critical responsibility for all businesses. It plays a vital role in fueling revenue and significantly improves brand image. Increased customer retention leads to greater customer retention and acquisition. It is necessary to understand that retention is imperative for the long term success of the business. Studies show that it takes almost five times more to acquire a customer than to retain one.
Loyalty of the clientele
Customer loyalty also increases profitability, increases upsell and cross-sell opportunities, and creates brand advocates. Loyal customers are also more likely to provide you with honest feedback that you can use to:
- Introduce a new product or service
- Improve business forecasts
- Reduce customer churn and
- Measure the success rate of your business
However, the question that arises is how to build customer loyalty? The answer lies in your marketing strategies. Marketing plays a vital role in improving your brand’s customer loyalty rates. A good marketing plan allows your business to be proactive rather than reactive.
Having such plans also means that your goals are measurable and achievable, which results in optimal use of resources while accelerating other business activities. Still, to execute such strategies, you need to build a team of skilled marketers well versed in conventional marketing gimmicks. So, hire marketers with online marketing credentials or sponsor a MBA Online Marketing Program for your top performing marketing employees. In no time, you’ll have a team of marketing experts ready to build customer loyalty.
Now let’s move on to some marketing strategies that help build customer loyalty.
1. Take advantage of email marketing
Several people claim that email marketing is dying and no longer effective. However, they couldn’t be further from the truth. Email marketing is one of the most robust marketing strategies in existence today. Studies show that 49% of customers receive marketing offers through email rather than direct mail. Additionally, nearly 87% of marketers use email marketing as part of their marketing strategy and believe it to be exceptionally effective.
Email marketing is a great way to build customer loyalty. However, you need to design your emails appropriately and attractively. Personalized content is king these days. A growing number of customers prefer personalized and tailored emails that respond directly to their needs. Also, adding graphics such as illustrations can significantly increase click-through rates on emails. Therefore, with loyalty emails you should always add a personal touch – it can be anything as long as it speaks to the audience.
2. Improve customer service
Good customer service is the core of customers loyalty to a brand. You’d be surprised how many of your loyal customers increase once you make customer service a priority. Repeated studies have shown that most customers associate a brand with their experiences and interactions. They instantly make a judgment based on staff behavior and responses.
While in-person customer service is essential, digital customer service matters a lot. Social media has become an indispensable online business forum in this era. Many brands use it to do business. Therefore, you should pay attention to your customer service on your social media handles. Some people might find it strange to associate social media with customer service. But you have to understand that as times progress, customers become more and more intelligent and vigilant. They keep track of everything, including how quickly you respond to their messages, how politely you text converse, and how responsive you are to queries.
Today, customer service combines much more than helpful in-store staff. Many other factors came into play and made customer service more crucial than ever, especially for customer loyalty.
3. Reward your customers for their reviews and recommendations
Satisfying experiences get the customer talking about your brand. Word of mouth goes a long way, and we can’t stress that enough. If you honestly want to build customer loyalty, you need to encourage your existing customers to review and recommend you.
However, only a few customers would be willing to give their time to provide you with honest feedback. Therefore, it would be useful to develop creative ideas to encourage comments. The best solution and the best encouragement would be to reward your customers for their comments and recommendations. These rewards don’t have to be physical. Instead, they could be something like store credit or coupons. They also don’t have to cost your business exponentially. But they must be sufficient to satisfy a customer.
When customers re-share your posts on their social media or praise your brand, you’ll instantly notice a spike in your digital business. And that’s why customer feedback is imperative.
Better customer retention can help your business succeed to a great extent. Loyal customers help strengthen your offers in the market, are generally less volatile, and are likely to spend more than others. They can also become ambassadors for your business and help promote your products and services.
Customer loyalty is also crucial to improving the lifetime value of current customers. Moreover, customer retention gives you a competitive advantage by defending your business against your competitors. It’s well established that customer loyalty can go a long way, especially with the right marketing tactics.