As a business owner, you know customers are the make-or-break factor for your business. A solid business plan, a great product or service, and a prime physical location are all extremely important, but they’re all meaningless if you can’t attract and retain customers with your marketing and advertising strategy.
As a small-business owner, creating a successful customer-centric marketing and advertising strategy may seem like something that’s very difficult to manage. Fortunately, with the right tools in hand, you can create an effective strategy for your business.
Build Relationships with Current Clients
When you consider the fact that the probability of selling to an existing customer is at least 60% while the probability of selling to a prospective customer is at most 20%, or the fact that an existing customer is 50% more likely to try new products and is likely to spend 31% more than new customers, the value of customer loyalty and retention comes into focus.
The key lies in the relationship you build with your customers. Every time you engage a customer, every time they walk into your store, and every time they look at your website, it adds to their collective experience of your brand, impacting how they feel about your business and how your business makes them feel. That means you should make the most of these interactions to create a positive experience.
Grow Relationships with Email and Social Media
Once you’ve established a relationship, you need to maintain it. The two most effective ways to do that when retaining customers are email (56%) and social media (37%). But before you throw all your time and energy into these two platforms, remember to do your own research with your customers to ensure that you’re actually using the methods and platforms they are using, and be sure they have the option to opt in or out of any type of communication.
While 68% of consumers say coupons generate loyalty, retaining customers requires more than that to truly improve the lifetime value of a customer. If you can retain just 5% of customers through loyalty, you can expect to see an average boost in profit per customer that’s at least 25%.
One way to retain your current customers is with different customer loyalty programs that leverages special offers, exclusive discounts, gifts, and other exclusive perks. The purpose is to solidify the value of maintaining a relationship with the brand.
But remember, loyalty isn’t just about the incentives; it’s about service and value. About 40% of consumers will buy more from brands that personalize their shopping experience across channels. Another 80% like when retailer emails contain recommended products based on previous purchases.
Another aspect of leveraging customer loyalty is a referral program. This kind of program can include asking for testimonials and reviews to help the customer feel valued. Making your customers a brand advocate in this way gives them a greater emotional stake in your business.
Stay Top of Mind
Perhaps the most important part of retaining customers is staying top of mind. Each of the above tips helps you to do that, but you need to remember to engage them consistently with a reasonable frequency. Staying in contact is how you help inform them about who your brand is, the values you share with them, build and strengthen an emotional connection, and position yourself to influence their brand decisions.
That means you need to remember to market to existing customers regularly on both the digital and traditional channels your customers use the most. Engage them with email and social, and foster real conversation. Most of all, provide value with every communication.
Ready to get started learning the specific tips for retaining your customers and attracting new ones? Download our eBook How to Use Marketing to Attract NEW Customers and Retain Your Existing Ones today! This eBook is packed with helpful tips so you can successfully begin to create a marketing and advertising plan for your small business. Download your copy today to get started!