Considering it’s up to 25 times more expensive to acquire a new customer than it is to retain a current one, boosting customer loyalty even a little bit can have a big impact on your business’ success.
The term “customer loyalty” can feel broad and overwhelming, though. What do you need to do to achieve customer loyalty, and how will you know once it’s established? Let’s explore.
4 Ways to Build Customer Loyalty
You’ve likely heard of the 80/20 rule, in which 80% of the outcome comes from only 20% of the causes. In simpler terms, the bulk of your business’ revenue will come from a small group of dedicated customers.
Unfortunately, you can't create the kind of loyalty that keeps customers coming back often for years overnight. However, that doesn’t mean you can’t start building customer loyalty and strengthening your business today.
Below are four simple strategies to build customer loyalty for your small business, as well as small action steps you can take right away.
Make a good first impression
A new customer’s first impression of your business has a lasting impact, so it’s important to consider the first encounter as part of the loyalty building journey.
What to do today: The most common reasons customers take their business elsewhere is unfriendly service or an employee’s lack of knowledge. A simple 5-minute discussion with employees about the latest specials, items, or company news will make them feel more confident and comfortable chatting with new customers.
Consistency is key
Relationships take time and effort to build. Nonetheless, you’ll be rewarded for the effort you put into nurturing the relationship because the amount a customer spends grows alongside trust.
What to do today: You can start a habit of consistently helping customers today by making a list of news, updates, and interesting information that you can share regularly. For example, you could let customers know about an upcoming addition to your business through a short and helpful text message.
Personalize the customer’s experience
Customers are more likely to become lifelong fans of your small business if they feel that special attention is paid to their individual needs. In fact, 80% of customers are more likely to do business with a company that provides personalized experiences.
What to do today: Make a plan to collect customer birthdays so that you can send personalized birthday offers on their special day.
Last but not least, it’s important to reward loyal customers. You’ve put in love and hard work into your business and your customers, and in return, they’ve continued to visit. Now you have the opportunity to maintain that loyalty through a loyalty rewards program.
What to do today: Try Sparkage and set up a digital rewards program your customers will love that will only take you a few clicks to get up and running.
Customer loyalty has always been, and always will be, important for local small businesses. The only difference now is that Sparkage makes customer loyalty programs easy to use for both businesses and their customers. Need to see it to believe it? Request a demo to see the power and simplicity of Sparkage for your small business.