Did you know that the 80/20% rule also applies to the survival of a business? What do I mean by that, let me explain? 80% of the brand’s profit can be achieved by 20% of its current customers. A business can grow its 80% revenue through 20% of its customers.
Your business or startup needs customer loyalty for survival. An interesting statistic shows that repeat customers spend about 67% more on your brand than new customers. Also, the cost of running campaigns to attract new customers is more than the cost involved in retaining old customers.
These statistics are the reason why a startup needs to focus on building its loyalty base as a means of boosting its profit. Every startup/brand can grow when its customers keep coming back to do business with the company.
However, more startups are finding it challenging to build a loyal customer base for several reasons.
In this article, we are coming to look at the various ways that your startup can build customer loyalty for business profit.
Challenges to Building Customer Loyalty for Your Brand?
Customers do not have an obligation to remain loyal to a brand. But it doesn’t dispute the fact that if brands can optimize their customer satisfaction, they will reap the benefit of brand customer loyalty.
However, building brand loyalty comes with a lot of challenges.
First of all, the vast option of buying choices available to customers has made them have more purchasing power and choices to buy from your competitors. Especially if they are not happy with an aspect of the brand, this has also provided them with fewer reasons to remain loyal to your startup.
Secondly, the existence of social media has made it easy for customers to share their disappointment in a company with others. It is more challenging for a brand to control the narrative of negative comments shared by customers on their digital platforms.
Furthermore, in the recent competitive business era, brands have a high task to perform when it comes to attracting new customers while keeping their old customer base. Building a strong brand and staying profitable without strong customer loyalty is challenging.
This means that, for a business or startup to remain profitable and competitive, they have to build their customer loyalty strongly.
9 Ways to Build Customer Loyalty for Your Startup.
Let’s look at the 9 ways to build customer loyalty for your startup:
- Reward Customer Loyalty
- Ask for Feedback
- Respond As Soon As Possible
- Create and Update Your Community
- Deliver Great Customer Service Experience
- Under Promise and Over Deliver
- Maintain Your Reputation
- Provide Customers with A Reason to Be Loyal
1. Reward Customer Loyalty
As a startup, you will be looking for the easiest way to build customer loyalty, rewarding loyal customers is one of the easiest ways to keep loyal customers while attracting new ones. Showing appreciation by rewarding your most loyal customers can go along way to help build your startup.
You will not spend a lot to undertake this initiative, but it will help you achieve your goal.
A reward can be as simple as giving them free products, discounts on a purchase of your products, posting their pictures with a letter of appreciation on all your social media platforms, or a treat at a nice restaurant.
By treating your loyal customers with rewards, it will mean a lot to them, and they will like to stick around for long, others will also see the need to climb up to attain the customer loyalty level.
2. Ask For Feedback
Customers always tell us how they want our products and services to be packaged and delivered through comments on our media channels and other channels.
Not only that, any bad or good experiences they have about our products and services, they do not hesitate to voice it out on any of our media channels. But that shouldn’t stop you from asking for feedback directly from them.
Asking for customer opinions is a great way to make customers feel like they are part of the brand. You show customers that they matter when you ask for their opinions. It grows brand loyalty fast and more robust.
3. Respond As Soon As Possible
Building brand loyalty goes beyond reaching out to customers on social media. You also need to respond to their queries as quickly as possible.
The business world is very competitive, and customers feel the need to get their queries attended to on social media as soon as possible. Your competitors are also on social media, so it is easy for a customer to move to your competitors to get some answers to their queries if you are not available.
Most startups aren’t active when it comes to responding to customer queries on social media. Customers expect a response from brands within six hours of submitting their questions.
Set yourself aside, and make it a goal to answer customer queries as quickly as you can if you want to build customer loyalty for your startup.
4. Create And Update Your Community
As humans, we all feel the need to belong. This is the reason why people remain loyal to their group, schools, family, and church. Many brands are using this hack to build brand customer loyalty, and they are doing well.
With this typical hack, you can build a strong, loyal customer base for your startup. Create a community and organize weekly or monthly meetings with your customers if you are a local brand. You can equally create an online community for customers who are not around your neighborhood.
Your main goal is to create a community where your customers will belong. They see this move as a family movement, and they tend to be loyal to the brand.
5. Deliver Great Customer Service Experience
Customer service is a very crucial part of every brand, and when it is handled well, will bring a significant change to your business.
Customers will always run to brands that handle their customers with care. They will only love your brand if you treat them like family. Exceptional customer service will earn you lifelong loyal customers.
Not only will good customer service help retain customers, but your customers will share their experience with family and friends who will also come to you whenever they need your services.
Make your brand easily accessible to your customers. Be ready to receive their complaints and issues; always have the intent to solve their queries as soon as possible.
RECOMMENDED: 5 Top Benefits of Branding for Startups
6. Under-Promise And Over-Deliver
As a startup, you should always amaze your customers with your service delivery. You should always under-promise and over-deliver. Make a conscious effort to exceed your customer’s expectations always. Your hallmark should always be focused on exceeding customer expectations. If you assured them of delivering services within 8 hours, if possible, get the services provided in 5 hours or less.
Do more than what you promised them and do it well. Always beat their expectation. When customers see this side of your brand, they will not hesitate to recommend your brand to their family and friends. They will also stick with you for a long time, after all, who doesn’t want to be served well.
7. Maintain Your Reputation
Riding on past glory will hurt your startup as time goes on. As a startup, you don’t have to rely on past glory to run your brand. You may end up losing your lifelong customers as a result of that. And if you are not gaining more new customers to replace the old lost customers, your startup will go down.
When you build a reputation for your startup as being consistent, dependable, and reliable, you have to exhibit that as long as your startup is running continuously. If you make changes in your startup, you should inform your customers before they experience the changes. This will make them aware of everything going on in your startup, which will tend to increase trust in them.
Smile. This simple tip can be a vital tool in building brand loyalty for your startup. Smiling and warmly welcoming customers in front of your physical business space go a long way to create an impression in the customer’s mind which makes them increase their spending habits.
It also creates rapport and establishes trust, which is what every brand needs. A smile is the first tip on the list when it comes to exceptional customer service.
Don’t forget to give a smile.
9. Give Your Customers A Reason to Be Loyal
One of the ways to stand out among your competition as a startup is to provide your customers with top-notch products and services.
Aside from standing out among your competition, customers tend to have a passion for your products and services, which leads to excellent customer loyalty. When you offer your customers with exceptional products, they will forever stick to your brand. Good products and services, accompanied by excellent customer service, are all you need to give your customers a reason to be loyal to your startup.
Relationship building is vital in every aspect of life, including business. Customer loyalty is established when a brand relates well to its customers. It is crucial when it comes to the growth of every startup. If you want your startup to remain profitable and attract new customers, then you should make a conscious effort to build customer loyalty.