Often Overlooked
Finding new members or customers makes us all eager to try new lead generation ideas. However, building customer loyalty is even more critical (and often overlooked). Increasing customer retention rates 5 percent can result in up to 95 percent increased profits. That is some amazing ROI. So how do you nurture your current customers or members?
With this post we divide loyalty into four main facets: communication, selling, reciprocity and support. The longer an individual is your customer, the higher the profitability of that relationship. Read on to get started!
Communication
If your goal is customer loyalty, you will get there when your customers/members genuinely care about you. The public responds to businesses and organizations that stand for something. If you do not clearly express what it is you stand for, it is easy to be ignored. This doesn’t necessarily mean fancy words and elaborate design. The best way to stand out is consistent, positive reinforcement. Sixty-four percent of consumers who said they have a strong relationship with a brand indicated shared values as the primary reason.
People tend to like things that resemble them in some way. This is a cognitive bias called implicit egotism. It is useful to keep in mind when communicating with your customers. You have to figure out who your target audience is and what they want—then give it to them. Your services, products and content must capture their lives. Speak to their pain points, joys and goals.
Selling
Selling in a favorable way is an integral part of building customer loyalty. Not all words are created equal. Using words your audience loves to hear can elicit a major response. Customers show positive reactions to the words that imply promises. Some words are: free, new and instantly. When you make good on these promises, customers enjoy their purchases more than they would have otherwise. Neuroeconomics experts say nearly a quarter of all buyers are conservative spenders. Incorporating bundles and reassuring words can be a better selling strategy. Packaging your sell in this way reframes your business. You give the impression of adding value for your customers, not seeking profits from them.
Reciprocity
You will be rewarded with repeat business if you go above and beyond for customers. The same goes for members. This doesn’t have to cost you tons of money or effort. Employ the “wow” factor; you can build reciprocity even through small gestures. According to psychologist Norbert Schwarz, as little as 10 cents can create reciprocity between two individuals. It really is the thought that counts. Utilizing the element of surprise can have a powerful impression, regardless of what the gift is. Recall a time that someone did something nice for you unexpectedly. The gesture probably wasn’t grand, but the surprise factor left a lasting impression on you. Build customer loyalty through giving customers something to remember.
Support
Exceptional service is the key to making your members and customers come back time and time again. In a Gallup study, brands described as helpful were nine times more likely enjoy customer engagement. Speed only made customers six times more likely to engage with a brand. Spending the extra time to be genuinely helpful makes you stand out amongst competitors.
Refine Over Time
Customer loyalty is much more than a to-do list item. Keep tabs on customer satisfaction. Take the initiative to ask questions regularly. “What would you like us to start doing?” “How would you like us to switch things up?” “When would you like us to stop emailing you?” These kinds of questions make people feel heard. They also give you valuable insights on starting points for improvement. How you engage your customers will determine how they engage with your business.
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