How to Increase Customer Loyalty

Tactics to Turn Buyers into Lifetime Customers

When you see a new, hot product advertised in your Instagram feed, you might be excited enough to click through and buy. More often, though, you’ll find yourself turning to the tried-and-true, trustworthy brands from which you can always expect top quality.

Hey, you’re a brand loyalist!

Why cater to brand loyalists?

The brand loyalist goes by many names, from brand ambassador to diehard. No matter the name, these types of dedicated customers are extremely valuable, with 43% of U.S. customers spending more with the brands and companies they are loyal to. Catering to brand loyalists is cost-effective, too. Fundera reports that it costs five times more to acquire a new customer than it does to retain a returning one.

What is Customer Lifetime Value (CLV)?

CLV is a metric that shows how much net profit your company can make from one customer over time, represented below by a handy chart from Retently. When each customer becomes more loyal, you can spend more on retaining those who need a little push from purchase one to purchase ten … and so on.

customer lifetime value.png

10 Ways to Maximize Customer Value

1| Leverage a loyalty program

This will vary based on your business model, but everyone loves a loyalty program. Give customers a dollar amount off their next purchase, or set up a referral program to benefit returning customers while connecting with new ones.

2| Use remarketing

Cart abandonment and one-and-done purchasing suck. A smart way to prevent those pitfalls is to remarket to those users by delivering ads to them that remind them to hit that checkout or take advantage of a current sale you’re running.

Side note….

This is probably our most technical recommendation. If you’re not super savvy with online ads, try starting with Facebook retargeting ads, which are a little easier to figure out. When you’re selecting who should see your ad, you can choose to serve it to those who have visited your website (or even your physical store!). This works best when you have a high volume of website traffic (here’s how you can track your website’s performance!). If you feel comfortable with online ads, Google’s remarketing ads are the next step.

3| Anticipate needs—and develop content solving them

Your customers are turning to you because they need something. What is it? Are they looking for a home cleaning service that won’t make them feel embarrassed about huge pet messes? Write a blog post addressing that concern. Working title, “What to Look for in a Legit Home Cleaning Company” and suggest that customers look for a down-to-earth company that won’t make them feel judged. When you provide content that customers didn’t even realize they wanted or needed, they’ll come to you for more than just sales—they’ll trust you as a thought leader and resource, too.

4| Find a way to be available 24/7

In this digital age, customers expect to get a response to questions within a few hours. However, we don’t all have the resources to achieve that benchmark. That’s where automation comes in. Consider a service to handle your website inquiries in a way that looks like live chat to your customers, or try autoresponders for your social platforms.

5| Use social listening

If you don’t have your ear to the ground and actively listening to social media mentions and online reviews, you’re likely missing opportunities to improve a customer experience and persuade them to purchase again.

6| Regram, regram, regram

Social media is essential to any business’s marketing efforts, no matter the business’s size or industry. Monitor your channels and when a customer posts about a good experience with you, share it! It will help the customer feel rewarded for speaking out (and help you look friendly and gracious in the eyes of others.)

You can also give them a shout out during Instagram Live streams, further reinforcing a connection with them. The more they feel acknowledged and appreciated, the better!

Do you need more advice about how to increase customer loyalty? Our digital marketing consulting services might be just what you’re looking for to talk to someone who can help you develop customer retention ideas using your online tools.