How to Boost Your Customer Retention: The Importance of Loyalty

HOW TO BOOST CUSTOMER LOYALTY

When you are asked what is the most important factor that your business needs to achieve success what would be your answer? Our answer would be customer retention. Those people, who consume your products, recommend your brand and services to friends and family are part of a primary structure that contributes directly to the success of any enterprise.

If you usually buy something in the same store for two years and every time you make a new purchase but you get a different benefit. This makes you more than happy to continue shopping there. You are made to feel special, whether because of pricing, or quality , but the key is the offered customer experience.

Retailers already know that betting on loyalty is a great way to retain customers, as well as having competitive prices and an efficient strategy that keeps track of customers who are most loyal to your business.

The importance of loyalty

The loyal customer represents 65% of a company’s turnover. Keeping those who already know your products and have a certain level of relationship with your brand is much cheaper than investing in new consumers.

Here are some of the facts:

  • By keeping a satisfied customer loyal your company adds more value to the business, creating brand authority at little extra cost.

  • About 95% of unsatisfied customers will simply stop buying without giving a reason or a complaint. Attracting those customers who buy and do not return can bring more harm than profit in the long term.

  • To win a new customer you will need to invest in marketing – that is something that is expensive. If your loyalty program is not implemented effectively, your business will not be able to retain consumers, who can opt for your competitor.

3 Efforts to take into account when attracting new customers

1 More investment will be needed

You will need to invest in marketing, training and ads to attract new customers. Within new customers there is no guarantee that any of them will return to your store without you implementing strategies and more investments.

2 There is a possibility of attracting the wrong customers

If you do not plan a well-targeted campaign you risk attracting customers who will not add value to your business. Only a small part of the target audience will effectively convert more sales.

3 More effective care will be needed

If you have not made a truly structured business plan, your business may not be able to respond to all requests you made.

If you do not have a truly effective loyalty program within your company, the chances of the competition taking over your space will be much greater. People seek quality, satisfaction and the best conditions according to their preferences.

 

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