One fact that is often overlooked is that it takes 5 times more effort to sell to a new customer, than to get a previous customer to buy from you again.
If that’s the case, why do small businesses focus so much on finding new customers without putting enough attention on their previous customers? Surely, a lot of effort can be spent exploring ways to get repeat purchases from previous customers (in addition to continue to find new customers too)!
The ultimate relationship you can have with your customer is loyalty. This is when customers become attached to your brand, your products and services for various reasons. Whatever it is, you’ve taken a place in the customer’s heart and they will always be willing to buy from you or use your services again.
But customer loyalty isn’t automatic. It starts by giving a customer the best experience possible and ensuring satisfaction across all the various touchpoints leading to overall excellence. It is at this point the customer is willing to give you a 5-star review, share their positive experience with others and possibly link you up with referrals. With consistent excellence you may just have built a long-term relationship with your customer. This is what customer loyalty is about in simple terms.
So you see the importance of customer loyalty right? There are far too many benefits and this is why customer retention is so important in any business, especially small businesses that seek growth.
How to Identify your loyal customers
Identifying who your loyal customers are, so you can push offers to them, can be done in different ways, but MyCo has simplified this through it’s insight tool to help small businesses uncover a list of their top X customers across a variety of metrics.
The image above shows the variety of reports that MyCo gives to small businesses, so they can easily identify their top performing or loyal customers. For example, the Top Shoppers & Top Spenders reports reveal those customers who have purchased your products and used your services over any period of time. This is a great way to locate customers who spend more, so you can keep them for as long as possible.
What to do after identifying your local customers
Understanding who your loyal customers are is not only for pushing them offers to lead them into sales. There are so many other opportunities you can leverage with the aim of maintaining customer loyalty, building strong bonds and keeping your loyal customers for as long as possible. The focus should be on building relationships with your customers, and that leads to repeat-sales.
- Thank you notes — Sometimes, all you need do is appreciate your customers. A surprise thank you note goes a long way in appreciating a customer and that alone can set you apart from your competitors. Also, customers tell others about surprise experiences, so it’s a great way for your brand to become a topic of discussion among customers and their contacts. It is very cost effective, so why not do this today?
- Surprise gifts — You can also consider surprising your customers with gifts. These may include tokens, freebies or complimentary gifts. You can accompany these with a note to let your customers know why you’ve sent it to them and how you appreciate them being one of your most-valued customer. This is something the customer will never forget, so consider making this a practise.
- Personal favours — As a business owner, you may have access to special deals that are available only to a few. You can also consider sharing these with your customers where possible and you can trust they will appreciate it too and consider returning the favour some day. These may sometimes come in form of more purchases, or promoting your brand out there.
- Exclusive Invites — If you have a membership program, you can consider inviting your most loyal customers into a VIP scheme. But it is not enough to call it a VIP scheme if there are no perks of membership. You can consider simple things like discounts on future sales and invites to customer meetings to share important updates and get customer feedback too. When customers are part of an exclusive membership, they feel more special and more loyal to your brand.
- Shout outs — Depending on who your customer is, a public shout out on social media can boost loyalty too. Consider special features that may excite them. And if they are a business owner, you can use the opportunity to promote their brand as well. It doesn’t cost you much to do that.
- Testimonials — Customer reviews are very important, but one thing that has more value over simple review statements are heart-felt customer testimonials. This is priceless, and loyal customers are some of the best sources for testimonials. Consider asking your top customers to share success stories and testimonials highlighting the benefits of using your products/services. This can be shared via your marketing channels to attract more customers too.
- Exclusive offers — And of course, the option to present offers and deals to your loyal customers is always there. Since they have already used your products or services in the past, it shouldn’t take much convincing to get them to buy from you again, especially if you’ve identified them as your most loyal customers.
Now that you know why it’s important to know your loyal customers and what you can do to leverage some selling opportunities, remember it all starts by you understand who your loyal customers are. If you don’t even have a way to understand your customer demographics, we can show you how to do that with our tool.
Why don’t you check out MyCo’s insight tools. It may just be that missing piece to help you get more sales from your past customers without even trying hard.
Did you find this article a good read? Which of these options will you be considering? Let us know in the comments!