Every business owner knows that the way to successfully grow a business is to have a loyal customer base. The increasing competition in the global marketplace makes customer acquisition costs (aka the amount of money it takes to land a sale) higher than ever before. Plus these days, the cost of online and traditional marketing that lead individuals to visit a website or a retail location doesn’t guarantee a sale. So how can businesses guarantee growth?
The businesses that have grown have found that the only way to do so is to turn potential customers into loyal ones. In fact, “on average, it costs approximately five times more to attract a new customer to your business than it costs to retain an existing customer,” according to one source. The companies that are not able to secure long-standing clients find that the price of constantly chasing after new customers often can’t sustain the business. But how can businesses land loyal customers? Follow these tips!
How many times have you purchased an item you simply loved, but then couldn’t recall the website or store where you found it? This is a problem many business owners have not found a solution to, although the solution is fairly simple. As with any relationship, if you want to upkeep a relationship with your clientele, you need to work at it. The way to do that is to keep in constant communication with current and potential clients.
A simple strategy to implement that relationship is to create a database of your online and physical visitors. In order to collect your customers’ information, you should ask them to sign up for a newsletter or enter their email to receive exclusive coupons and discounts, as well as helpful articles and announcements about new products or services. Doing so will not only keep your brand fresh in your customers’ minds, but will also encourage them to shop with you.
Other than quality offerings and affordable pricing, one the most important characteristics that separates successful businesses from unsuccessful ones is customer service. Although some business owners try to cut costs in that area by automating the process or transferring services overseas, the truth is that companies can’t afford not to invest in excellent customer service.
World-known brands, such as Amazon and Zappos, developed their entire business plan on the importance of the customer, treating them with respect and integrity. When your organization has a solid customer service plan, you offer a value to you clients that will set your business apart from the competition, leading to repeat sales.
Become an Authority
While every business owner wants to be great at sales, the most successful entrepreneurs know that one sale doesn’t lead to lifelong loyalty. They have caught on to the fact that while customers can purchase products from anyone, they are much less likely to be swayed by competition if they trust the source they are buying from.
How do you get your customers to trust you? Honesty and transparency are two ways, but authority is another. If you become an authority in your niche market, you will put yourself in the position to give shopping advice and curate what your customers should buy, instead of leaving the decision up to them.
By truly becoming an expert in your field, whether it’s health, marketing, accounting, etc., you can write helpful articles, answer questions and make online videos that educate your clients about your space. When you are seen as a leading figure, your potential customers will turn into loyal customers.
The truth is that while it is more cost-effective to land a repeat sale than a new sale, you will likely need help in investing into a customer loyalty program. IOU Financial is here to fuel the growth of small business. We can provide a small business loan of up to $150,000 in as little as 48 hours. Contact us today!