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Whether you run the gauntlet of the aisles for your weekly shop, or prefer to order online, chances are you use the same supermarket, every time. And when it comes to getting your car serviced, do you always visit the same garage, year after year? Chances are; you do.
Customer loyalty is big business for retailers, but building a loyal group of customers should not be reserved for large chains operating on the high street. Local businesses just like yours can benefit from ensuring you work just as hard to keep customers, as you do to win them.
Loyal customers play a key part in the success of any company, no matter how large or small.
Why is it so important to have loyal customers?
Every business benefits from loyal customers. Over a year, the sales of one loyal customer can add up to a significant amount. If customers develop a loyalty to your business they are much more likely to choose you over your competitor.
80% of your business comes from 20% of your customers*
Remember the 80/20 rule. Successful local businesses tend to find that 80% of their business comes from only 20% of their customers – these are loyal customers that purchase regularly.
Word of Mouth – the cheapest form of marketing. Satisfied customers will spread the word for you – selling your business to family and friends. Not only do loyal customers spend more, but they can also help bring in even more new customers. Loyal customers are particularly useful in businesses such as plumbing, building and electrical, where most people use word of mouth recommendations to help them decide which business or person they are going to use.
What can you do to keep your customers loyal? Treat them well.
Friendly customer service – give the customer a reason to trust you. Add the personal touch and it will help your customers feel valued.
Offer value where possible and ensure customers feel they are getting a good deal – they are much more likely to buy again. Remember, don't charge prices you cannot maintain, but don't devalue your product or service with continual discounts.
Customer complaints. Although a business would like to avoid complaints, if there comes a time when you have a complaint, make sure you deal with it effectively and quickly. This will help you build customer loyalty because the customer feels they can rely on you. Sometimes, refunding or replacing at no extra charge can help build loyalty.
So where do you start? Think about what your customers would like, what would they see as value? Are you able to offer them something a little extra that will set you apart from your competitors? You do not need to be a marketing expert to generate loyal customers, but you do need to build relationships.
Think about any successful company locally to you; would they have been as successful without loyal customers?
See our Top ten tips for creating a loyal customer base.
* Web Group Marketing, April 2009
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