Repeat customers are the most profitable customers. They spend more per sale and offer the best ROI on advertising spend. However, the stats show a meagre 27% of initial sales develop into repeat customers.
Businesses need to focus on building brand loyalty.
Consumers remember the feelings they associate with a company, even if they forget the logo or brand name. Apart from the basics of providing a quality product, the right marketing and branding can help you develop a strong base of loyal customers for your business.
By following the 5 tips below, you can cut down on churn and turn casual buyers into loyal customers that connect with your brand and keep coming back for more.
1. Engage and Interact
Customers that feel listened to are happy customers – happy customers are loyal customers.
Interacting with your customers is a great way to stay in their thinking and build a relationship. A good old fashioned thank you, holiday wishes, and birthday greetings can go a long way.
The problem for the majority of businesses when interacting with their customers? Poor customer service.
Improving customer service is one of the most critical areas for increasing customer retention, especially on social media. Despite 65% of Twitter users expecting a company to respond to them within 2 hours, 70% of people that reach out to a business on social media don’t receive any response at all.
Make sure your customer service is responsive and on point, particularly on social media.
2. Be Consistent
Your customers want your brand to feel the same to them throughout every interaction. Consistency is crucial in building brand loyalty.
Fast food chain McDonald’s is one of the most successful brands ever. This success has been built on consistency – going to a McDonald’s in Kuala Lumpur feels the same as a McDonald’s in Kentucky.
Your brand should have a solid consistency too. Your logo, tone of voice, and design choices should be the same on all digital and social media platforms.
3. Make Your Business Easy to Identity
Pick the product or service you do best and promote that to your customers – what kind of company are you?
The more easily identifiable you are, the more likely people are to remember you and your product. Trying to please everyone and promoting a mass of products and services can leave you making little impression at all.
You need your customers to understand what you do and the problems you can solve for them. That means focusing in on the thing you do best. Nike produces a lot of different sportswear products and clothing. But when you hear the name Nike, you think of trainers. They’re the company that makes trainers. What does your company do?
4. Referral Programs
One of the most rewarding benefits of repeat customers is that they can become great word of mouth ambassadors for your company. While it’s fantastic when this happens without any of your input, you can encourage it by creating a referral program.
Uber has seen great success with their program that rewards original customers with credit for providing a referral and the new customer with a discount. Uber’s strategy encourages new customers, rewards loyal existing customers, and provides everyone an incentive to use their service. Reward your loyal customers and you’ll increase your chances of retaining them for as long as possible.
5. Give Away Freebies
Staying in the minds of your customers is crucial to gaining repeat business. That’s why it’s so important to be easily identifiable and also why companies invest so much in promotional materials that they give away to customers.
This can mean both a physical gift or through the free valuable content that you post on your blog or send in your newsletter. Providing content that is useful and interesting to your customers positions your company as knowledgeable and trustworthy, while also keeping you at the top of the mind of your customers. The note-taking App Evernote has seen great customer retention through posting blog content that is valuable to their customers and aligns with the product they sell.
While offering freebies can help keep you in the mind of customers and a referral program can actively encourage customers to promote your business, creating a loyal customer base doesn’t happen overnight. Engaging with your customers, being consistent with your branding, and being easily identifiable are the building blocks for creating a community of loyal customers around your business.
By applying the above tips, you’ll be on your way to gaining a loyal customer base that consistently chooses you over your competition.
Author bio: George Drennan is a writer on all things e-commerce and the founder of Eagle Content, a UK based copywriting company that helps brands and businesses connect with their clients.