Is your business neglecting the opportunity to nurture customer loyalty by spending more resources on attracting new customers? Don’t miss out on a higher ROI by leaving loyal consumers to fend for themselves.
When it comes to businesses that provide services or goods, (that’s all businesses, right?), what if it were true that there are two types of customers: those for the weekend and those for a lifetime.
While the circumstance may vary, a weekend shopper may impulsively and impressively buy a load of goods or add-on services out of convenience, leaving you thinking that you need to recreate that isolated sales event for future transactions. In all actuality, if this phenomenon occurs one day out of the month, it’s probable that your loyal customer base is making the other 20 or 30 days equally profitable.
If you’ve been successful with customer retention, take a minute to affirm yourself for filling a void in your industry and providing a solution that consumers can look to consistently.
If that’s not the case and customer retention or high turnover is a challenge for you, take a second to assess your acquisition and retention strategy. Don’t exactly have one? You’re not alone. Only 23% of marketers are tracking customer turnover and less than 40% are tracking the value of lifetime customers.
The reality: New customers will spend their money at your business, but the likelihood of their return comes with little assurance, because there is always another supplier with a lower price or a closer proximity that will swoon that customer away.
On the other hand, lifetime customers will drive the distance and pay the premium not only for your goods and service, but also for the experience of shopping with you. New customers can be converted into lifetime customers with diligent application of strategies like the following:
- Customer Service is a way of life. Weave it into your entire organization. Everyone from the janitor to the owner should work to make a good, lasting impression.
- Deliver consistency: Commit to strengths, acknowledge your weaknesses, and close the gap between the two.
- Share and deliver your values: Connect with your customer based on a human connection.
- Convert prospects into leads and make them loyalists with effective email marketing.
- Reward Loyalists: Loyal customers naturally recruit and refer other loyal customers.
- Use a Lifetime Value of a Customer Formula to guide your strategy.