It’s much easier (and more cost effective) to retain a current buyer than it is to acquire a new one. That being said, you won’t be able to create loyal customers unless your business is committed to providing exceptional service and value from the start.
Tip 1: Remember the 20/80 rule
This generally-accepted rule states that 20% of your existing customer base generates 80% of your profits. In other words, most of your business comes from returning customers who feel a commitment to your brand.
And, according to ThriveHive, this means that just a 5% increase in customer retention can increase your business profits by 25-125%!
Tip 2: Offer exclusive discounts
Special discounts get customers to buy from you during typically slow times. They’re also a great way to recognize key segments of your customer base, cultivate word-of-mouth referrals, and create loyal customers in the process.
Tip 3: Encourage reviews
Potential buyers check reviews to see other people’s experiences with your company before deciding if they want to buy from you. And since happy customers are basically brand advocates, authentic testimonials can be a powerful marketing tool.
However if you’ve gotten some critical feedback, that’s okay. Just make sure you take care of the customer’s concerns and fix the problem quickly. They may even change or remove their criticism as a result.
Tip 4: Thank your customers
A simple thank you goes a long way in sustaining customer loyalty.
You can demonstrate your gratitude many ways. One of the most effective is by sending a handwritten note or printed packaging insert with each purchase, personally thanking them for being a customer and offering incentives for future purchases.
In sum, the lifetime value of a customer is a crucial factor in sustaining business growth. Thus if you give them what they want, treat them well, and make them happy, you will create loyal customers who will always choose you over the competition.
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