10 Strategies to Boost Sales Through Customer LoyaltyRamon Ray
Contributed by Tatyana Artemova an entrepreneur, mastermind expert, and founder at IStartHub.
It is essential to focus on building a reliable customer base while running a business. You can do this by giving your audience some good reasons to keep coming back. Actually, that should be the number one strategy of a growing business.
According to Statista, businesses spent more than $75 million on customer loyalty. And no wonder because acquiring new customers is more expensive than retaining existing ones. Focusing on building strong relationships with your customers will boost your sales.
So, here are some essential strategies that will help you to improve customer loyalty and move your business to the next level.
What Is Customer Loyalty
Customer loyalty is a customer’s willingness to keep purchasing or engaging with your products. Customer loyalty impacts the lifetime value of your customers and guarantees consistent revenue. And it also helps to attract new customers when your products and services are recommended by satisfied customers.
How to measure customer loyalty
To measure your customers’ loyalty, you should know the intention behind repeat purchases.
How often do they buy?
How satisfied are they with each transaction?
Why do they stop purchasing?
Where do they make purchases from when they stop buying from you?
While every business incorporates different metrics, here are some ways you can use to measure your customer loyalty.
Churn rate is the percentage of customers that fail to renew their subscriptions or cancel your product or service. It applies more to businesses with regularly paying customers, such as SaaS or subscription-based models. When you have many customers stopping or canceling their payments, it is a sign that your churn rate is high and could allude to problems.
Customer satisfaction level
Customer satisfaction level can be measured via on-page reviews, star ratings, surveying, and customer interviews. Use customer interviews to get in-depth feedback on your products or services. While reviews are ratings-based, surveys provide specific answers from your customers. All of these tools can help you to understand your customer’s needs and improve your customer service. But if you want to start simple, you can send them an email asking for a review after a purchase.
Customer lifetime value (CLV)
CLV highlights the value of a customer to your business. It is used to analyze the customer’s worth for the period rather than looking at it from a purchase-to-purchase perspective. This metric is essential because increasing the value of your existing customers can stimulate the growth of your business.
10 Key Strategies To Improve Customer Retention
Reward your customers
Aside from discounts, customers love gifts and surprises in all forms. So, the key to customer loyalty is rewarding. A personalized thank you card, increased loyalty points, and access to a special event are some of the ways you can use to show your gratitude to customers.
A great example is McDonald’s that has recently launched a loyalty program allowing their app users to get points for purchases.
Have a more-than-business relationship
Don’t just tell about your brand. Bring value and make them feel your support and care. Understand what they like and dislike, and try to get closer to them. For example, you can start a podcast to share useful tips and answer the most frequently asked questions from your customers. Such a level of engagement will help you to build strong relationships and bring a more thankful audience.
Loyalty is a virtue, while satisfaction is a phase. To expect loyalty from customers, you also need to show loyalty towards them. Don’t just chase customers during the sales cycle, but invest in retaining them as well. Even after a sale, keep your customers engaged and show them you care about their superb experience.
Trust is the key
Show people that you always keep promises and your business is transparent. If you launch a giveaway or a contest, announce its official rules and results in time. This will strengthen your relationships and help people remember you long.
Sometimes your product may not meet someone’s requirements. Learn to be honest and accept it. In such a case, it is ok to refer your customers to another product. Believe me, it is better to say no, and your customers will never forget this. The fact that your company is interested in customers’ interests more than in business itself will increase your customer loyalty.
Always give more than expected
Aside from discounts and rewards, try to exceed your customer’s expectations. As an example, you can deliver the products ahead of schedule, or give some extra service for free. Such an approach will make your business stand out amount the competitors and help customers remember you.
Avoid high dependence on technology
While technology is good, it’s more important to have a human touch for more efficiency. Having a one on one interaction with your customers will help you understand each other better. Rather than hearing the beep of a robot, a human voice with an understanding tone will help your customers open up more.
Little things matter
Companies that have an army of loyal customers have one thing in common. They all care about the little things. It could be as simple as adding hooks to the bottom of restaurants’ tables that hold customers’ belongings. Don’t ignore such details as they help to get the best customer experience.
Be expressive and caring
When your regular customers don’t buy long, you need to remind them about yourself. For example, you could invite them back with some gift or reward. Let your customers know how you value them.
Invest in your regular customers
Since loyal customers help your business grow, such people should be treated with extra care. Definitely, every customer deserves your attention. But investing in customers promising long-term loyalty should be on the priority list.
As far as you can see launching a marketing strategy with a strong foundation is easier said than done. Without the right kind of energy and planning, you will not bear any fruit. But if you need to increase your customer loyalty and increase your sales, make sure to consider the above strategies.
Author bio: Tatyana Artemova is an entrepreneur, mastermind expert, and founder at IStartHub. She writes about business ideas and growth hacks to support entrepreneurs on their business journeys.
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