Are you striving to achieve significant sales and profits? Instead of putting all your efforts into attracting new customers, focus on retaining your existing ones. From this article, you will learn how to increase customer loyalty and why it is essential.
Why Do You Need to Increase Customer Loyalty?
Some may think that customer retention is not important; they only care about the end result, which is making sales. However, improving customer loyalty brings about crucial results that you should not overlook.
Loyal Customers: Lower Costs
Have you calculated how much it costs to convert a random person into a customer? This process involves numerous steps, from attracting their interest to persuading them to make a purchase. But retaining an existing customer can be “cheaper,” up to 25 times less expensive.
Marketing is crucial, but customer retention can significantly save costs.
Loyal Customers: Higher Spending
Returning customers make up only 8% of the total customers in the U.S., yet they contribute to 40% of the revenue, according to Adobe Digital Index. They tend to make frequent and larger purchases because they have experienced and know about your brand.
Loyal Customers: Free Advertising
Creating loyalty turns customers into brand advocates. Customer reviews often hold more value than traditional advertising. Loyal customers motivate others to shop on your dropshipping store through word-of-mouth.
How to Increase Customer Loyalty?
Not Just Thanking Customers
Expressing gratitude is not the final stop. After thanking them, confirm their choice, share product benefits, and guide them towards positive reviews or other relevant content.
Tracking and Sending Follow-Up Messages
Remind customers of your existence by sending “follow-up” emails. Don’t just spam advertisements; provide value with information about promotions, new products, or links to blog articles.
Loyalty Programs
Utilize reward programs, even small ones, to boost loyalty. Discount codes, small offers are good ways to show your care to customers.
Order Confirmation and Welcome Emails
Sending order confirmation emails helps customers feel secure. Welcome emails after each first order create a positive impression.
Listening and Fixing Mistakes
Acknowledge mistakes and fix them. Listen to customer reviews to understand and improve services. Mistakes are not the end but opportunities to showcase your professionalism.
Building Social Media Community
Use social media to build a community around your brand. Provide educational and entertaining content to create a positive impression.
Admit Your Faults
Acknowledge mistakes and fix them. Honesty and willingness to rectify errors help build trust.
Put yourself in the customer’s shoes and find out what makes them come back. Listen and meet their expectations to create a positive and sustainable business environment.
