Today, your business may get a lot of customers. But can you keep the same number of customers the next day?
Maybe that’s the reason why now you are interested in knowing how to effectively maintain customer loyalty.
Good news, you are in the right article! Because here we will thoroughly examine 7+ ways to maintain customer loyalty.
So, what are the steps? Patience, before going deeper into the core of the topic, of course you must first know the benefits that you will get by maintaining customer loyalty.
Let’s find out!
This Is Why You Must Maintain Customer Loyalty
Instead of being tired of retaining customers, why not find a lot of new customers?
Eits, even though finding new customers is important, you won’t be able to rely on this strategy in the long term.
Why is that? Because research has shown that it costs five times more to attract new customers than it costs to retain customers.
Naturally, because there are many costs that you need to spend when attracting new customers. Examples include advertising costs, promotional costs, and the like.
If you are constantly targeting new consumers, of course your business marketing budget can come up short.
In addition to cutting marketing costs, maintaining customer loyalty can also provide greater profits. How come?
Statistics show that 80% of your future business profits can come from 20% of your loyal customers.
But, how do you know if your customers are loyal or not? Well, next we will see how to measure consumer loyalty!
How to Measure Customer Loyalty?
There are several ways you can do to find out the level of customer loyalty. Here are some of them:
1. Measuring Satisfaction Metrics
The first and easiest way is to measure customer satisfaction metrics. You must have seen many businesses that practice this method.
All you have to do is distribute surveys that ask the level of consumer satisfaction with your product or service.
To find out customer ratings in more detail, you can ask more in-depth questions. For example with multiple choice or short entries.
By combining satisfaction metrics with more in-depth questions, you can gain useful insights for your future business development.
2. Calculating Customer Lifetime Value
Customer Lifetime Value (CLV) is a formula for calculating the value of a consumer as long as they are associated with your business.
The count is not how much money consumers spend in one transaction. But how big is the total transaction value generated from these consumers.
The more often these consumers make purchases, the higher the value they have.
3. Look at the Repeat Purchase Rate
Repeat Purchase Rate (RPR) serves to measure how many consumers make repeat purchases.
The higher the number, the more consumers who buy your product more than once.
In other words, a high RPR can be an indication that many consumers are loyal to your business.
Then, how do you calculate the RPR? Don’t worry, the formula is simple:
RPR = Number of people who make purchases more than once (in a year) / Number of buyers in a year
Just like CLV, you can also see your business RPR through Google Analytics. You do this by clicking Audiences > Behavior > New vs Returning. Then, look at the percentage of profits earned from Returning Visitors.
4. Measuring the Churn Rate
If the previous metrics focused on measuring the level of customer satisfaction and loyalty, this one metric is just the opposite.
Churn rate is a metric that measures the percentage of shoppers who stop buying your product. Typically, this metric is used for businesses that offer subscription options.
For example, suppose you offer a service with a monthly subscription system. Every time a buyer unsubscribes, the churn rate will increase.
So, make sure your business has a low churn rate.
7+ Powerful Steps to Retain Customers
Based on the four metrics above, you already know whether your business has lots of loyal customers or not.
If the satisfaction, CLV, and RPR metrics show high numbers, congratulations! This means that most of your customers are loyal.
But, what if it’s the other way around? Don’t be discouraged. You can practice the following 7+ steps to increase and maintain customer loyalty:
1. Make sure your product is superior to competitors
Making your product stand out from the competition may sound easier said than done.
But, this is indeed something you should pay attention to at the start. Because no matter how good the service you offer, buyers will not buy again if the product is mediocre.
2. Provide Complete Communication Channels
So that customers can be even more attached to your business, make sure your business appears on various platforms.
That way, your business will be more connected with customers. You can also easily convey important information, such as product updates or promo info.
3. Give the Best Impression to Customers
A memorable business is a memorable business. Therefore, give the best impression to your customers.
4. Create a Loyalty Program
Loyalty program is a special program created to trigger buyer loyalty. This method is indeed quite popular, you must have experienced the practice first hand.
For example, when you visit a mini market, surely you have been offered to register for the membership program, right? Usually, the rewards offered are in the form of bonus points or discounted prices every time you shop.
This is a powerful way to trigger customers to make repeat purchases. Because they can be tempted by the bonuses offered every time they shop.
5. Offer Subscription Options
The next step that you can try is to offer a subscription option.
So, customers don’t just pay in one transaction. But they will routinely make transactions every month / year.
However, why do customers have to choose the subscription option? What benefits will they get by subscribing to a business?
Sometimes, there are customers who want to use products or services on a regular basis. Here the subscription option can be a solution. Because they just have to make payments per month or per year to be able to enjoy the product or service.
In addition, usually subscription options also offer fees that are more “economical” than regular transactions.
6. Familiarize Your Business with Customers
Do not know, then do not love. This term also applies in business. If you don’t get closer to customers, your relationship with them is only a buying and selling relationship.
However, it’s a different story if your business manages to build a personal relationship with them.
Eits, don’t get me wrong, what is meant by personal here doesn’t mean inviting them to get acquainted one by one, you know. Moreover, build a “personal” relationship with them.
But. You position yourself as a “solution provider” or even their “friend”.
Perhaps you are wondering. Why does your business need to do this?
The answer: If customers manage to get “familiar” with your business, they will definitely tend to prefer your business over competitors.
Then, how do you familiarize yourself with customers? The easiest way is to say the customer’s name.
7. Give Bonuses to Customers
A practical way to attract customer attention is to offer bonuses. Because, who is not tempted by the word “free”?
If you regularly offer bonuses according to customer interests, surely they will be interested in visiting your business from time to time.
8. Share Your Business Value
When we choose friends or partners, we usually tend to choose people who are of the same principle as us.
The same goes for choosing a business. Sometimes the principles and values offered by a business can be taken into consideration before buying the product.
9. Build Customer Community
Communities are groups of people with the same interests. By building a community, you can invite new customers to join groups of loyal customers.
This can encourage them to also be loyal to your product. This strategy has been widely used by various businesses, one of the most common is the automotive business.
10. Take advantage of Social Proof
Do you know? Based on a Google survey, 59% of buyers conduct online research first to ensure that the product they are eyeing is indeed worth buying.
This is the reason why many businesses display positive testimonials across their various marketing channels. The goal is to make potential buyers believe in their product.
11. Ask for Feedback From Customers
Curious about what customers want? You just have to ask them directly! By asking for feedback, your business will also be seen as caring about consumers.
There are many ways you can do this. Starting from distributing questionnaires, opening Q&A sessions on social media, to conducting surveys via email.
Confused Where to Start? Get Started By Providing a Comfortable Website for Customers!
Now you understand how to retain customers, right? In essence, you just need to follow these steps:
– Make sure your product is superior to competitors.
– Provide complete communication channels.
– Create a loyalty program.
– Offer subscription options.
– Offer bonuses.
– Build community
– Include social proof.
Also, don’t forget to make customers more comfortable with your business. For example by making the best impression, sharing business values, becoming more intimate, and asking for customer feedback.
Next.. What are the first steps you need to take?
Good question. So, you can start by providing a comfortable website for your customers.
Why is that? Because, most of the steps above you need to do through the website. For example, you can invite customers to join the loyalty program or subscribe to emails via the website.
Therefore, a quality website can help you retain customers. The more comfortable the website is, the more likely customers are to feel at home with your business.
So, to create a comfortable website, make sure you use a quality hosting service.
This is because the right hosting service will make your website stable for 24 hours, quickly accessed, and safe from hacker attacks.
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