Every small business owner struggles with customer growth at one time or another. Many of us may believe that throwing money into marketing is the best way to increase our business.
There’s a saying that I use every so often that says “It’s much easier to double your business by doubling your conversion rate than doubling your traffic”. (Brian Eisenburg)
What this means is twofold.
One - You need to convert the ones that are actually coming to your business or website into paying customers. We need to get better at that - Using funnels to lead them into a sale. Using better copy writing skills to encourage the sale.
Two - This also means that you need to build brand loyaltyfor a higher customer retention.
What’s the big deal about customer retention?
There is a difference between repeat customers and loyalty.Repeat customer is one will buy from you over and over again. Maybe it’s convenient. Maybe it’s the price. Maybe they just haven’t found anything better -yet.
But with that it also means is that they could leave you at any time. If a new competitor shows up in the neighborhood you could lose that customer.They have no reason to be loyal without a buy in from you.
But we need those customers!
It is a proven fact that it cost five times more to find new customers.
Repeat customers also spend more money and they are easier to market to because you have sold to them in the past and they trust you. They are then willing to buy more expensive products. Plus, repeat customers may also refer more customers than anyone else.
So how do we move our customers from simply repeat to a loyal customer and why would we want to?
First let’s look at what is a loyal customer.
A loyal customer is one who does not entertain a thought about leaving. They turn down a better product or a better price without hesitation.
They will promote you and go to bat for you with managementin order to keep your business. They will even give you valuable ideas to improveyour business.
That loyalty needs to be nurtured and cared for by every business owner. Whether they are with you because of an employee or because of your values and practices, taking care of your most loyal customers is imperative. They simply cannot be replaced.
Repeat or Loyal?
So how do you know whether a customer is simply a repeat satisfied customer or a loyal brand customer? The bottom line would really be whether they are likely to refer others to your business.
You probably noticed when visiting websites a quick questionnaire that pops in as to how satisfied you were and if you would recommend the business to others. Simple yet effective to gauge the job you are doing.
Adding a comment area would certainly increase the ability for feedback so that you can work on your internal systems to ensure you build that loyalty that can feed your business and bottom line for years to come.