Two Underlying Reasons to Maintain Loyal Customers
Loyalty and gift cardproviders will tell you that they can help boost your sales and client traffic. It’s true when they tell you “it takes a client more than one visit to spend the amount of a gift card” and “at times clients will spend more than the amount on a gift” card. But there are two hidden, underlying reasons to maintain loyal customers that the average business owner may never consider. These two reasons can go a long way when looking towards success of your brand.
Loyal Customers Act as Brand Ambassadors
This isn’t something you, as a business owner, ask for. This is something your loyal customers will do on their own. According to etuma.com, customers will tell their friends about good experiences at your location. This might influence new people to visit your establishment for the first time. Without you even knowing it, your loyal customers are walking around telling others about their experience and driving new customers to your doorstep. It is very important to treat your loyal customers right. They may not realize it either, but they are helping spread the word about your brand.
It Costs 6 to 7 Times More to Acquire a New Customer Than Retain an Existing One
According to TomorrowToday, it actually costs 6 to 7 times more to acquire a new customer. When a loyal, repeat customer walks into your business they know exactly what they want and where to find it. It requires zero effort from your employees except for a “Hi, how are you?” New customers may and probably will need help finding a product or size, forcing your staff to work harder to gain that new customer’s loyalty. Of course you are paying your employees a salary to do their job, but loyal customers who visit frequently only cost about 15% of what it takes to make a new client loyal.
Ultimately, customer loyalty is very important and there are many other reasons why it’s critical to retain loyal customers. The insights above are two reasons to keep loyal customers loyal.