Keeping an Eye on your Loyal CustomersMegan Totka
The customer relationship is not over at the end of the sale. In fact, that is when it has just begun. Statistics show new customers cost an average of six to seven times more to acquire than selling to a repeat customer. In fact, it is estimated that 80% of a company’s business comes from just 20% of its customer base. It truly pays to keep your loyal customers happy. Marketing Metrics says repeat customers have a 60% to 70% chance of converting, and you need nine first-time shoppers to get that rate. RJ Metrics data shows your top 10% customers spend an average of three times more per order than the bottom 90%, while your top 1% spends an average of five times more. How can you be sure you are fostering that ongoing relationship to keep loyal customers engaged?
Rely on Social Media
Social media can help you spread the word about promotions, educate customers on your products and services, and address customer concerns. Social listening tools make it possible for you to see what people are saying about your company. Pay attention to social media chatter, and respond as often as possible to thank them for their comments and to attempt to resolve any negative issues.
Use a Customer Relationship Management (CRM) Platform
Using a CRM can help you get a bird’s eye view of what’s going on in your business. You can look closely at any customer to see how long it has been since they have made a purchase, look at customer service notes, their average order value, customer lifetime value, and more. This information can help you quickly and easily identify the most loyal customers in your database, making for more targeted marketing campaigns to help you stay in touch.[Tweet “5 ways your #business can keep #loyal #customers happy.”]
Send Exclusive Deals and Discounts with Email Marketing
Email marketing tools allow you to segment your subscribers, so you can keep a separate list of people who’ve purchased from your company multiple times. Use the list to send exclusive offers only to those customers, and for even better conversion rates, personalize the offer based on their previous shopping habits. People love a good deal, and nearly ¾ of them prefer to conduct business with brands that use their personal information to create a more relevant shopping experience. Moreover, 86% of consumers say personalization influences their purchasing decisions.
Focus on Customer Service
Customer service plays a significant role in building and maintaining customer loyalty. If a loyal customer has a bad experience, it can cause them to waiver on remaining loyal to your company. Only 16% of shoppers are willing to give eCommerce sites a second chance after a bad experience, and two-thirds of online shoppers say a poor delivery experience could send them to the competition. Arm your customer support staff with everything they need to take care of everyone, especially the loyal ones.
It’s the Little Things
Use the customer data you have to send customers small gifts or special discounts on their birthdays, or customer anniversary with you. Going out of your way to provide a token of your appreciation like this lets your customers know you care. And when they feel valued, they are much more likely to remain loyal to your brand. In fact, 77% of customers like when brands show their appreciation. 60% of consumers say the brand should say thank you directly to the individual, and 44% of them say that should be personalized.
Your loyal customers deserve attention, but that is not to say you should neglect customer acquisition. It is about finding balance, to ensure a steady flow of sales and profit. Pay attention to what your data tells you, and adjust strategy accordingly.