Do you know if your customers are loyal? Well, if you aren’t sure, you’ve never looked at how many people have come back to you to buy again. Loyal customers are more likely to return to you regardless of the price. For a startup, it is crucial to work on customer loyalty as it can serve as the foundation for your startup. In addition, it also boosts growth, stability, and sustenance, all of which are vital for survival in the market. For this reason, it is crucial for you to know how to build customer loyalty.
Why is customer loyalty important?
If your customer is loyal, they’ll have the habit of doing business with you regardless of how inconvenient it may be. Even if your competitors offer similar products at reduced prices, your loyal customers will come to you. For a business, customer retention is crucial as the cost of selling to a new customer is 5x more than the cost of retaining an existing customer.
Having that said, here are a few more reasons why you should know how to build customer loyalty.
- Positive reviews and feedback on social platforms
- Referrals from happy customers
- A better understanding of customers’ demands
- Targeted marketing for existing customers.
- Insights into customer purchasing behavior
- If you know how to build customer loyalty, it will help you plan ahead.
- Loyal prospects tend to spend more than newer ones.
- significant boost in profits and a higher rate of conversion.
Though there are many more reasons for startups to invest their time and resources in retaining customers, the ones we have mentioned are enough to make up your mind. Next up is how you can build customer loyalty for your brand without having to spend a fortune.
How to Build Customer Loyalty as a Startup Business?
Customer loyalty isn’t something that develops without any effort. The right business ideas for startups are what you need to come up with the perfect plan. Here are a few tips we believe are ideal for you to focus on to build customer loyalty.
1. Communicate with Your Customers Using Various Channels
If you think posting on Facebook is enough to connect with your customers, you are wrong. In order to build trust and develop a long-term relationship, you need to reach out to them through various channels. Posting on all social platforms is crucial. But sending your current customers a personalized email about new deals or products is a nice way to show that you remember them.
You can also use these communication channels to remind customers about core business values on general topics like the support of NGOs, saving trees, recycling, and even climate change. Such messages are crucial to winning hearts and building good relationships.
2. Know your Customers and Let Them Know You
You’ll have to get personal with your customers to develop a relationship. Learn their buying habits, stories, and even names. Treat your customers as separate individuals, not just customers like all others. For example, a personalized email with an exclusive deal on their birthday should do the trick for you. Or you can also send emails to customers that you know will personally appeal to them.
On the other hand, if you want customers to trust you, you’ll have to share information about both your business and yourself. To start, you can keep them updated about a company’s news before that specific story is shared on social media or in the press. Also, never be afraid to admit to rough times. Such gestures will help people see the humanity in your company and brand. This will make them feel more comfortable while doing business with your organization.
3. Set up a Referral Program
A referral program rewards customers in return for any sales that they refer. In exchange for referring your business to a family member or friend, you can offer your customers a specific benefit. Not only does this strategy help attract new customers, but it also ensures your existing customer comes back to either redeem the benefit or simply refer more people. One of the best business ideas for new businesses is to offer incentives for leads.
4. Create a Customer Loyalty Program
Customer loyalty programs are great for rewarding and encouraging loyal customers. Such programs have criteria in order to receive the reward. But the benefit the customer gets is mostly worth it. If you are wondering about the cost of setting up a loyalty program, then you’ve got nothing to worry about.
One of the best business ideas for startups is to install a leading reward plugin on your WordPress website. Our pick? MyCred! MyCred is a free WP plugin that helps startups create a loyalty program on their website. With this plugin, you can reward your customers with points, ranks, and levels to keep them motivated and entertained. Once you set up your loyalty program through MyCred, you’ll be able to do a lot of things that make your platform more engaging.
5. Promote Customer Feedback
In order to make your customers understand how much you value their thoughts and opinions, you need to ask for constant feedback. Request email reviews, send out surveys, and always be open to feedback. Even if you receive negative feedback, appreciate it and try to resolve the issue. Once you resolve the case, you should go back to them and inform them of the changes you made in reflection on their feedback.
In order to know how to build customer loyalty, you need to understand that customers always show more interest in a business that values their feedback. In order to make them loyal, you have to be loyal to them first. Listen to all feedback and improve your business accordingly.
6. Store Customer’s Data
Customers are always in a hurry. By storing their information, you’ll make their shopping experience easier and quicker whenever they come back. You can allow users to create an account on your site. This account will securely store all data that they share with you. This includes your shipping address, contact number, email address, credit card details, and any other personal information you may have.
By having an account, customers can make quick purchases whenever they want. Such accounts are always helpful during sales. Websites are flooded with traffic, and sites tend to slow down. If your regular customers already have an account, they can log in and make quick purchases without having to worry about entering all the details once again.
7. Provide Excellent Customer Service
One aspect that builds and destroys brands is customer support. Investing in after-sales support is one of the best business ideas for startups. If you want to survive or challenge top competitors, you’ll want to offer support that’ll make people come back. Resolving someone’s problem or helping them out is a gesture that’ll touch hearts. And once that happens, you’re in a win-win position.
As we’ve mentioned before, if you want to learn how to build customer loyalty, first understand your customers’ importance. Regardless of what type of queries your support team receives, you need to help them. If they ask for the nearest pizza place, help them by sharing information about the nearest pizza place instead of telling them that you are an e-commerce store. You never know; they might actually come to buy something from your brand anytime soon, all thanks to the fact that you helped them.
Customer loyalty is all about building relationships. No matter what business ideas for startups you get, if you are able to invest in your customers, you’ll eventually find success. All the tips on how to build customer loyalty mentioned above are vital in helping you move from being a startup to a successful company dealing with countless customers. Remember, ‘Consumers are kings‘; they are the business. So, start following our tips to build customer loyalty for your business.
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