How Customer Loyalty Helps You
The first instinct of many Small Business Owners is to continually seek new Customers, and you can understand why. In order to grow, a business needs to be serving more people than it currently is, and isn’t the goal of businesses to grow?
What is often overlooked, however, is the value of the Customers a business already has, and boy do they have a lot of
value to offer. Not sure why you should be shifting your focus away from new Customers to your existing Customers? Let us walk you through all the ways in which
Customer loyalty can help your business grow and thrive.
It Gives You Reliable Income
Probably the greatest advantage a large group of brand loyal Customers brings to your business is that they’re reliable. The whole point of brand loyalty is that they know you, they like you, and they’re going to stick with you.
The value of that cannot be overstated in this incredibly volatile and unpredictable market we all find ourselves operating in. You never know when the flow of new Customers is going to dry up without warning.
Having a
core group of loyal Customers you can depend upon goes a long way to helping you weather those unexpected storms, and helps you to plan for the future as well.
Repeat Customers Are Valuable Customers
We’ve established that loyal Customers will spend money at your business regularly, and that’s valuable enough, but they also have a habit of making bigger purchases.
Think about it, how willing are you to go all in on a brand you don’t know? Dropping big money on a brand you’ve never had dealings with could end up being an expensive mistake. Much more appealing is the brand you already know, and that you can trust to deliver the value you’re looking for.
They also cost a heck of a lot less to market to than new Customers do. With reported conversion rates of anywhere from 60-70%, your loyal Customers are as close as sales get to a sure thing.
Compare this to new Customers, where a 3% conversion rate is a respectable number. Loyal Customers spend more, spend more often, and cost less to get in the door than new Customers.
Build Up Word of Mouth
Word of mouth is the most powerful of all forms of advertising. People trust people, and if those people are telling them you’re a great choice, they’re going to believe them.
Loyal Customers are going to attract new Customers, and if you give them what they’ve been promised, they can become loyal Customers as well. On top of that, a vocal cheer squad helps to drown out the occasional bad review, and show that you’re overall worth spending money with.
Brand loyalty is an incredibly valuable force that can easily be the difference between a successful business and one that’s struggling to stay afloat. By all means chase new Customers, but don’t neglect the ones you’ve already got.
