Essential Ingredients for a Loyal Customer Base

by | Oct 4, 2018 | NatHERS

Loyalty is a powerful thing. According to the 80/20 rule, a successful company will see 80% of its business come from 20% of its customers. What’s more, the cost of acquiring a new customer is anywhere from five to 25 times more than retaining an existing one. Existing customers are also proven to spend 67% more than new customers.

 In short, there’s a lot to be gained by keeping your existing customers happy.

So, how can you keep clients loyal to your business?

 Here are 5 essential ingredients: 

 1. Consistency

It might sound simple but providing consistent service is a powerful tactic. Consistency builds trust. Customers know what to expect and know they can rely on you to get the project done and deliver the results they need. This means they are not only more inclined to use your services over others, they’ll also tell their friends.

 2. Emotional connection

Emotions drive behaviour and decision-making – even when we think we’re making a rational decision. What does this mean for customer loyalty? It means clients are more likely to choose those businesses they have an emotional connection with. So, to build customer loyalty, you need to put in the upfront work to get to know your clients. Show an interest in their lives (family, holidays, footy team) and build a relationship that’s not purely transactional. If you find it difficult to remember the details, keep notes and refer to them during conversations.

3.  Expertise

Become a source of expertise. Rather than focusing on the sell, show your clients that you understand your industry and their challenges. By proving you are knowledgeable about your services, they will feel a sense of security that they have made the right choice.If you’re not sure what your customers want to learn more about, ask them.

 4. Advocacy

Word of mouth is the most trusted and powerful form of marketing. Encourage loyal clients to tell friends and family about your services and reward any that result in new business.

 5. Feedback

You can’t nurture customer loyalty unless you understand why customers don’t come back. Ask for regular feedback from your clients and use their feedback to improve your services. It’s also worth telling your clients that you’re acting on their feedback, so they know you listen and that they made a difference.

Final Thoughts

The bottom line is that loyalty is built upon a foundation of trust – it’s a relationship. If you want to garner true customer loyalty, don’t treat your customers like a transaction. Focus on building a genuine two-way relationship and you will both reap the rewards.

For more tips and advice on how to build customer loyalty, check out business.gov.au.

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