The trend of brand loyalty has been looming over small businesses stifling them and not letting them grow. When new small businesses realize that there are no place for them in the niche they have chosen it might be too late to recover the finances they have already put into the business. And to open a business you need to invest a lot of money and twice as much efforts. Too bad to see it all go away so fast.
But what if you turn the term brand loyalty around and make it work for you? Yes, it is hard to find customers, when they first start using your product they are apprehensive, they don’t trust your brand yet, they don’t trust you. Keeping such clients interested and keeping them with you can be crucial to your business.
If you work to ensure that your customers stay and become brand loyal to you, you have succeeded. You have created that trust with the customer and that means you as well as ensured that they stay with you forever. And don’t forget that gossip works better than advertising on social media. Your trusted customer likely has friends and family. And just like that, your business starts to grow like a tree. Slowly, but steadily, becoming stronger and stronger with every new trusted customer.
Statistics & facts
Studies by Bain & Company has come up with interesting statistics, which can peak your interest. 5% customer retention can lead to up to 95% increase in profits. Therefore, an old customer is much more valuable than a new customer is. And this is why customer retention should be your priority, rather than customer acquisition.
Returning customers are more likely to:
-tell the others about your product;
-try new products and services you provide;
-spend more money on your product;
-overlook your shortcomings;
-give you an outsider advice that can help you improve your product.
Short or long term
Most companies however still focus most of their efforts on customer acquisition. Customer acquisition can be measured in people. It is a short-term result and it will work for short-term businesses. But when you open a business you don’t do it order to disappear in a year. A customer retained can still have his impact on your business in 5-10 years. Children of retained customers grow up using your brand and they will not use any other brand either, as well as their children.
In general is costs 5 times more to attract a new customer than to retain an old one. It does show you where you should keep your focus and what you should prioritize. Now, it doesn’t mean that you shouldn’t attract new clients. But you should think what is more important for your business.
There are various customer retention techniques and ways to lead a customer retention campaign. There are many ways to keep your customer engaged and interested.
A customer saved is 10 customers gained. Remember this and hold on to your customers.
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