Customer Loyalty Retention Strategy
When it comes to selling your products or services, a customer loyalty retention strategy is of most importance. You will always be under pressure to land newer, larger customers. While securing new clients is important, you might be leaving money on the table by neglecting to develop a customer loyalty retention strategy.
Most large and organised companies put a lot of importance on consolidating their relationships with their actual customers and are maintaining these relationships by employing a customer loyalty retention strategy, and sometimes a very simple one.
Why develop a customer loyalty retention strategy?
Customer loyalty is the art of creating a lasting relationship with your customers. It contributes to maintaining a strong link, a “loyalty effect” (see empirical work done by F. Reichheld) which consolidates the competitive position of the one who offers a good or a service on the market and preserves its market share and its profitability.Source Wikipedia
The merchant must therefore retain his customers for 2 reasons:
– In the short term:
It appears that today, it is much cheaper to keep customers than to prospect new ones.
A trader therefore has every interest in investing in a loyalty system that will allow him to retain his customers and especially the best rather than trying to conquer customers served by other traders and thus trigger a price war most often, ultimately leading to near-zero or even negative effects.
– In the medium and long term:
Studies show that over a long period of study there is a correlation between a trader’s ability to retain customers (and therefore a high retention rate) and its concrete results (market share, profitability and growth).
Retailers who are able to maintain their customer base and especially their “good customers” are the ones who are the most resilient to economic downturns, but also those who are most able to finance their development projects.
So, do not hesitate and invest in a customer loyalty retention strategy tailored to your needs.
Here are 10 of the easiest, cost-effective, and proven ways to retain and reward your loyal customers …
10 Tactics To Use For Your Customer Loyalty Retention Strategy
1. Once you made your first sale, make sure to follow-up with the client or customer. You should at least follow-up with a “thank you” message and it will be the perfect opportunity to include a recommendation for other products you sell.
Then, you could follow-up every now and then offering other products, a survey, just to find out if they are happy with the product they have already purchased. The follow-up messages interval would depend on the product or service that you are proposing.
2. The best time to up-sell to your customers is when they are at your order page. Suggest to them about a few extra related products or services that you have for sale. They might very well be happy to just add it to their original order; especially if your offer for an extra product or service is set at an irresistible price. You might be amazed to see how well it work.
3. You should also let your customers know that if they send 4 customers to your website, they will receive a rebate or a free gift of value with their order delivery. This might turn one sale into three other sales. This is known as a referral program, or affiliate program. Another great way of making extra sales.
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4. Never forget that when you make a sale to offer your customer to join your affiliate program so they can in turn make commissions selling the same product. This will extend the sale you just made, and your customer will be rewarded that way.
5. By selling the reprint/reproduction rights to your products as an extra sale. You could for example include an addon or with the product for other products you sell. Or also, you could earn extra sales for the reproduction rights and sales on the back end product.
6. Don’t forget that by cross promoting your product with other related products or services from other businesses, as a package deal, you can easily make a great sale. Also include an ad or banner for other products you sell and have other businesses selling for you.
7. When you ship out or deliver your product, make sure to include in the package a coupon for other related products you sell. This will entice them to buy more products from you.
8. Always send your customers a leaflet of other products that could complement the original product they have purchased.
This could be upgrades, extra services, attachments, etc. Don’t worry, if they liked your product they will certainly be happy to buy the extra add-ons.
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9. By selling gift certificates for your products you will make sales just from the purchase of the gift certificate, when the recipient cashes it in. They might also be interested in buying other items from your website. Therefore, always have great products and services ready for that.
… and last but not least
10. When sending out your customer’s order, always include some free gifts such as samples, a book, bumper stickers, ball caps, t-shirts, etc., people LOVE free stuff.
Very often, people will buy your product simply because you are mentioning a free gift. The freebies should have your contact details, website, phone number, printed on them. This will permit other people to see your ad and maybe contact you to place some orders.
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Thanks for reading
I hope that you now understand how important is to have a customer loyalty retention strategy in place to get more sales out of your existing customers. If you have any experience on the subject we would love to hear from you. And, if you have any questions, please use the box below and I will respond as soon as possible. If you enjoyed this article please share it socially and leave a comment below, I will highly appreciate it!
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