3 Things You Need To Do To Increase Loyalty And Retain Customers

My husband and I attended a wedding once that promised to rival a royal wedding.

Everything from the stunning champagne coloured, silk ribbon tied invite to the  exclusive country venue made  us believe we were going to attend a luxury, fairytale wedding.

Imagine our surprise then, when we arrived at the reception (after attending the church service) to coffee, tea and fruitcake.

No “dinner, drinks and dance” as promised and no small tokens of appreciation.

The result?

It was a spectacularly short-lived reception for 100 plus people.

So what has this story got to do with loyalty and retaining clients or customers?

When someone subscribes to your email newsletter they’re saying yes to your invitation to join your community, because they like and trust you.

This trust usually arises from a number of factors, the 3 most important factors being:

  • You’ve demonstrated your authority.
  • You’ve shown empathy.
  • There is a shared commonality between you and him/her, like shared values and interests.

3 things you need to do to increase loyalty and retain customers #smallbusiness #onlinemarketing #entrepreneur

The surest way to break this trust, of course, is to create expectations or make promises and underdeliver or not deliver at all.

Your subscribers’ trust is fragile particularly if they’re new.

Remember, just because they’ve signed up doesn’t mean they’re ready to part with their hard-earned dollars.

You’re going to have to prove to them that you are the best brand to meet their needs and that you have their best interests at heart if you want to build on this trust and increase loyalty.

So how do you do this?

“I believe the greatest gift I can conceive of having from anyone is to be seen by them, heard by them, to be understood and touched by them. The greatest gift I can give is to see, hear, understand and to touch another person. When this is done I feel contact has been made.” – Virginia Satir

You do this by demonstrating that you SEE, HEAR and UNDERSTAND your customer/client.

Speak their language

Your subscriber is going to look forward to your emails if you are speaking her language – literally and metaphorically.

You can only know your ideal client’s language, of course, if you are clear on who you are targeting.

If your ideal audience is men and women in their 60s, for example, you would be wise to steer away from slang and references to Harry Potter unless of course, you’re wanting to baffle all the Muggles, fam.

So getting super clear on your target market, is your top and most urgent priority.

If you are clear on your target market and know almost everything you can know about them (without resorting to espionage) go ahead and check the following:

  • Your marketing message makes it abundantly clear who you help and how.
  • You have sprinkled your content with metaphors and references that resonate with your audience.
  • Your content is relevant and remarkable (it makes your reader feel something).

Do this:

  • Clarify your message.

If you’re not sure how to craft a compelling message and position your business, join our free 5 Day Boost Your Biz Challenge and download the workbook.

  • Let your subscribers know of any changes. Those who unsubscribe at this point, are not your ideal clients.

Show You Appreciate Them

The word “appreciation” originates from the Latin appretiat which means to “set a price, appraise”.

I’m sharing this with you because…

You cannot appreciate what you don’t value.

This leads – naturally – to my question:

How much is a new client or customer worth to you?

You may be familiar with the CAC  (Customer Acquisition Cost) and the CLV (Customer Lifetime Value) metrics.

The CAC metric is the cost of convincing a potential customer or client to buy your product or service while the CLV metric is “the total profit of a client over his or her lifetime of patronage – including all residual sales—less all advertising, marketing and incremental product or service-fulfilment expenses. ” (Jay Abrahams)

Here is a quick example of how to work out your CAC.

Let’s imagine you spent $1000 on Facebook ads and got 10 new customers, your CAC is $100.

To calculate your Customer Lifetime value use this formula:

Customer Lifetime Value = Sale Price – Cost of Goods Sold.

There are 2 benefits to knowing what your customers are worth:

  1. You can determine how much you’re willing to spend to acquire a new customer/client and still make a profit
  2. You make smarter decisions.

Ok so now that you know how to show your customer’s worth on paper, let’s talk about practical strategies that reflect your appreciation for your client.

Do this:

Say thank you. A lot.  Include a Thank You email to subscribers and buyers. Create and schedule a Thank You post on social media, and thank all your followers and fans every few weeks for being rad, awesome or part of the fam.

And this:

Give. If you’re not doing so already give away great content.

And this too:

Reward your best customers/clients.

Show Them You Understand Them

In this video at 1min 20sec sound expert, Julian Treasure tells us:

Intention is very important in listening. When I married my wife I promised to listen to my wife every day as if for the first time.”

Swoon.

Relationship goals aside, when was the last time you intentionally listened to your existing clients or a potential client as if for the first time.

Your client, like you, is evolving and changing. Becoming aware of your client’s journey and changing needs, increases your chances of retaining her.

Questions to ask yourself:

How else can I be of service in an honest and authentic way?

What else is there in this for my client? (instead of what’s in it for me)

Questions to ask your client when you are ready to listen:

How can I improve my service/product?

Would you recommend me to your friends? And why?

Do this:

  • Have more 2-way conversations with ideal prospects and existing clients.
  • Create and share content that addresses your ideal client’s needs and solves her problems.
  • Create and share inspirational content that shows you empathize and understand her struggles.
  • If you’re selling products create a retention strategy and add it to your sales funnel.

In closing:

The brands that win are those that focus on the customer and not on themselves.

They build trust and loyalty by communicating empathetically and see marketing as an opportunity to serve.

Now over to you…

How are you building trust and loyalty? Is there anything you would add to this?

 

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About Yolanda

I help small business owners stand out so they can attract a consistent flow of ideal clients. I have over a decade's experience in marketing and business coaching and can help with online marketing, Social Media, content creation, SEO optimization and paid advertising.

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