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How can you develop customer loyalty?
Developing customer loyalty is maintaining and developing the "customer capital" of your company.
What is customer capital?
Customer capital is the potential wealth formed by each of your customers for your company.
Each customer represents a significant turnover potential by his attachment to your products or your services, by the frequency and the amount of his purchases, and by his loyalty.
It is therefore in your interest to manage your customer capital and make it yield a profit over the years, exactly as an investor manages his estate.
You should know:
20% of customers generally represent 80% of turnover.
Why should you manage your customer capital?
- To increase your turnover by offering your customers additional products or services
A loyal customer is good. A loyal customer who regularly spends more is better. A well-put together customer loyalty program will allow you to increase the "average shopping basket" of each of your customers.
- To make them want to come back often...
A satisfied customer is a customer who comes back. But you can encourage him to come back more often by creating opportunities: previews, seasonal offers, private sales, birthday offers, etc.
- To keep them for a long time
A loyal customer generates a substantial turnover. A well-put together customer loyalty program will allow you to keep your customers for as long as possible, by proposing offers suited to them, opportunities to meet...
- To convey a good image of your company
A loyal customer, satisfied with your brand or your name, will not hesitate to tell people close to him - friends, relatives, contacts... In this way, your best customers act as ambassadors for your company.
- To win new customers thanks to your customers and bring back former customers
It is even possible to transform these ambassadors (your best customers) into a sales force: this is the technique of sponsoring. It means asking your customers to name people likely to be interested in your offer (sponsoring "list") or even to recruit new customers themselves ("direct sponsoring"), in exchange for a gift or a privilege if the person they sponsor takes advantage of your offer.
- To bring back former customers...
Your former customers are rarely irreparably lost. So it is important to follow them up with a strong offer. For example: money-off vouchers, special offers, clearance sales, gifts...
- To dissuade your customers from going to the competition
Have you ever thought of the business your former customers do with your competitors, when they could do it with you? It is worth giving your customers every reason to be loyal to you!
We have just seen that your customers are the main wealth of your company. Let us see now how you can best exploit this wealth...and do everything possible to increase your profits.
To establish effective commercial relations with your customers, you must learn to know them better and set up a true strategy to develop customer loyalty according to their typology, and the nature of your products or services.
Developing customer loyalty: 3 key steps