Creating customer loyalty

Creating customer loyalty

Sound the klaxon! We’ve a new customer!! Everyone loves a new customer. It validates all your hard work when someone chooses your company. It’s a new opportunity to share content and reviews as well as cross selling other products. It’s so exciting you’ll give them a great offer to come back and buy more at a discounted rate. But how do your existing customers feel about that?

Think about it from a personal perspective. You take the time to buy from a brand, give them your custom repeatedly, recommend them to your friends – but what do you get in return? Where is the reciprocity? So, from a business point of view – how you do know if you customers are loyal?

Nice to see you again!

Those customers that purchase repeatedly from you are often the backbone of your business. You can work out a repeat purchase ratio – just take the number of customers who come back to you repeatedly and divide it by the one-off customers. Obviously, it varies from industry to industry but it’s a good starting point to understand this figure. A repeat purchaser is far cheaper to sell to, they are already aware of you and believe in your product.

Selling strategy

Whether you are up-selling or cross-selling, it is important to realise the importance of these as they influence how loyal a customer will be.

When you upsell, you’re convincing a customer to expand their budget and spend more than they had intended. Whether it’s a floral arrangement or a particular TV. They are already displaying trust if you have encouraged them to spend more. And trust will lead to loyalty.

Cross-selling tends to be where someone may add an extra to what they are buying i.e., a vase for the flowers or a sound bar for the TV.

Both of these should be taken into consideration as they show that the customer is engaged enough with your brand to spend more than originally planned. Additionally, it gives you an indication of how successful your marketing and customer relationship management has been.

Effective email campaigns

Despite the many discussions that email marketing isn’t as effective as it was once (surely you’ve read our article ‘Email marketing isn’t dead’??) it’s still great way to examine customer loyalty. There is every chance you have received an email after you’ve made a purchase or taken a particular action on a website. Referred to as a Net Promoter Score, these email campaigns are used to understand your customers.

Whether it’s an email sent within a day, week or month, they ask customers to rate their experience when using your product or service. Usually, a rating between 1 and 10 is asked for in order to gauge the level of customer satisfaction and if they would buy from you again.  It’s quick and simple but effective. Split the scores into three sections; a rating of 9-10 are your Promoters – they love you!  7-8 are Passives – you need to keep working on them. A rating of 6 and below are known as Detractors – they’re not happy and you need to decide how you will manage them going forward.

A pro-active email marketing campaign is essential for you to work out the level of your customer engagement with your brand.

Do you have a few minutes?

While sometimes it feels like we are overwhelmed with feedback surveys from businesses, they really do matter.

It doesn’t have to be long but should include the following;

  • How likely are you to recommend our business? Let’s face it a recommendation is the holy grail of marketing
  • How likely are you to buy from us again? – If you did a good job, they should be delighted to come back to you
  • How likely are you to try our other products and services? – If you have provided a great quality product or service, customers are more likely to make repeat purchase
  • How did you hear about us? – Source of business is so important – knowing how your customer found you means you can understand the success of your marketing campaigns

If you want to understand and build your customer loyalty, come and talk to us – we’re bursting with ideas!