Brands have been looking for ways to keep customers loyal for long time, and determining the value of a loyal customer is worth giving serious thought to. As the battle of new customers versus retaining loyal customers waged, it is not really a battle at all, but a complimentary relationship.
It doesn’t matter whether the customer is new or existing, the focal point is the customer, regardless of where they stand in the customer lifecycle. Especially in today’s connected world, loyal customers are a driver for new customer acquisition.
Still don’t believe me? Consider these facts:
- Loyalty program customers are 78% more likely to tell others about your business.
Loyal customers make up roughly 20% of most businesses’ customers, but they account for up to 80% of total revenue.
Loyal customers will spend ten times more over their lifetime and they can be advocates for your business to draw in new customers.
The reality is that no one ‘makes’ customers loyal. Loyalty is given by customers once it has been earned by the brand/company by adding value everyday.
Traditional customer loyalty programs reward the customer for doing business with (aka buying something from) the company, but more recently we are seeing businesses offer rewards for engagement on social media and websites. This encourages the customer to visit the site without asking anything of them and gives brands the opportunity to make another impression. This type of interaction is easy and pleasant for your customer and results in positive outcomes.
Creating a lasting connection with your customers looks a lot like building a relationship in ordinary life. Customers are people after all, not just a segment. Interacting with customers by way of social media or gamification is a great way to offer an experience with your brand where they are not being sold anything, simply hanging out.
Every positive interaction with your brand has the potential to strengthen the relationship by creating value for your customers. All of the points, rewards, games, etc. can’t take the place of great experiences customers have.
How valuable is a loyal consumer? Check out The Value of a Loyal Customer, an infographic made by Customer Insight Group.