Building a successful business is interwoven with having loyal customers. While many small businesses are in a frenzy to acquire new customers, it’s even more important to keep existing ones, according to Harvard Business Review.
Customer loyalty is what drives the big brand’s success like Apple, and it also should for online business retail. So, if you’re a small online store owner and have been sitting on the fence wondering what loyalty can do for you, here are five reasons why you need to build relationships with your existing customers.
Loyal Customers Stick with You
Loyal customers stick with you like glue unless you give them a reason to leave, by breaking their trust. Customers are humans too and are wired with emotions and attitudes. More often, emotional experiences are the number one reason why a customer will prefer to buy an iPhone instead of a Samsung phone. And even when the company is going through difficult business hurdles, the customer doesn’t abandon them – at least not immediately.
Loyal Customers Remove Competition
As a retail business trying to get your share of the market, you understand how hard it to get by, especially when competition is rife. It’s worse when your competitors are established brands with clout and marketing money to throw around. But, when you have strong established relationships with your customers, you ward off competition and continue to enjoy the patronage of your customers.
Keeping Loyal Customers Lead to Repeat Sales
A study by the Gartner Group found that 80% of profits is generated by 20% of existing customers. This makes a lot of sense as a one-time customer makes a first time transaction and doesn’t buy again, but a loyal customer carries out a second transaction and a third; thereby increasing your business revenue.
Loyal customers are also willing to try new products and services when there’s a launch by their favourite brand.
You Get Unpaid Brand Ambassadors in Loyal Customers
According to Glassdoor, Brand ambassadors in the UK earn up to £12.06 hourly. A brand ambassador in the London area can pocket about £31,000 per year. This is huge for online business retail that is constrained.
However, you can get your product advertised for free with loyal customers. They are more ready to share positive experiences about your business with family, friends and strangers. For instance, a client who has received an exciting customer experience from a coffee shop is more inclined to refer others to that company.
Honest Feedback from Loyal Customers
If your business isn’t generating much needed profit, it could be as a result of a dull landing page or a boring product design and packaging. That’s when you know you should conduct a survey. If your customers aren’t loyal, you would get false feedback that can altogether dampen the situation. However, if they’re loyal, you’d be sure to receive honest feedback, including the negative ones, so you can improve. After all, loyal customers want to see your ecommerce retail succeed.
I’m certain these five reasons are convincing enough for you to start investing in marketing campaigns to keep your relationship with existing customers strong. Here you can be more creative with your approach, as you don’t own a physical premises that incurs the same tax and insurance requirements. You have more money to play around with these ideas. If you’ve not started already, it’s never too late to start now.