Any business knows that existing customers are a more lucrative investment than new customers. Not only are existing customers more likely to do business with a company with which they already familiar, but each and every client is a chance for a referral opportunity. This means that every business must cultivate brand loyalty among consumers to succeed.
Here are the top five ways in which you can build brand loyalty.
1. Keep In Touch by Providing Useful Information
While it’s integral for any business to keep in touch with customers on a regular basis with current industry information, it’s also extremely important to edit what information is sent to existing clients. For example, a customer who has just purchased a home doesn’t need to receive a newsletter about programs for first-time home buyers. Instead, this customer might like to see a newsletter about interior decorating or companies that offer low property insurance premiums.
2. Social Media is Any Company’s Best Friend
There’s no doubt that direct marketing campaigns are helpful in the right circumstances. However, don’t overlook the value of utilizing social media as a cost-effective way to connect with customers and build lifelong relationships. Social media coupled with online survey software is one of the best ways to know what your clients want.
It’s true that utilizing social media may yield slower responses than the usual direct marketing campaigns, but this avenue also assures that customers won’t be bombarded with useless information that they will eventually ignore. Social media allows customers to respond when something piques their interest, fueling a long-lasting relationship over time.
3. Build Brand Loyalty with Higher Switching Costs
Though cellular phone carriers are notorious for their ridiculously high contract cancellation fees, there is a method to their madness. If a current customer must pay a large cancellation fee to back out of a contract, it forces the client to think twice about whether or not switching to another company will be advantageous.
However, use caution when deciding how to raise your switching costs. It’s not mandatory to raise actual monetary costs to the customer. Instead, think of unique offerings that only your business can provide. Whether it is market insight that only your business can dispense or special offers that only your current customers receive, utilize certain tools to keep your clients from ever going elsewhere.
4. Everyone Likes Rewards
Customer reward programs don’t have to be costly, though they are certainly a great way to keep current customers happy and coming back. Arrange discounts, special offers, or giveaways for existing clients.
Again, these rewards shouldn’t necessarily be expensive. Many companies opt to offer their own services and products as incentives, which keeps returning customers happy!
5. Talkative Customers Are Key
Now that you have customers who are loyal to your brand, ensure that your happy customers will tell their friends. For example, offer a referral rewards program to create buzz and earn new clients.
Building brand loyalty takes time and resources, but it is a worthwhile investment. Keep your clients informed and happy to keep them coming back and sharing their good opinion of your brand with their friends.