Ed burckhardt Why Customer Loyalty and Retention Can Boost Your Profits

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As a small business owner, you probably already know that customers are the bread and butter of your business; it simply will not survive without them.

But how valuable is a “loyal, repeat” customer to your business? Have you taken time to really think about that?

Successful companies all over the world recognize the importance of getting “new” customers. However, many of them almost ignore methods that help them keep their “existing” customers coming back to them on a long-term basis.

This is either because they don’t know how to get them to come back or they don’t take the time and necessary actions to make it happen.

Either way, in order to take control of your local market, your business must place some emphasis on building customer loyalty. If you stop to think about it, repeat business is much easier and less expensive to get than brand new business.

In just about any industry that exists, it is easier to get a customer whom has already purchased from you to purchase again… than it is to get a cold prospect to buy from you.

Wouldn’t you agree?

Published in: Automotive, Business, Education
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Ed burckhardt Why Customer Loyalty and Retention Can Boost Your Profits

  1. 1. By: Ed Burckhardt (800) 520-9498 Ed@ecommnow.com Boost Your Profits with Customer Loyalty & Retention
  2. 2. Why is Customer Loyalty & Retention So Vital? Getting “new” customers is much harder and more expensive than getting repeat sales from “existing” customers
  3. 3. Why Should Customer Loyalty & Retention be a Top Priority?  Attracting a new customer costs 5X as much as keeping an existing one  89% of consumers began doing business with a competitor following a poor customer experience  Emails targeted to customer loyalty programs have a 40% higher open rate
  4. 4. Why Should Customer Loyalty & Retention be a Top Priority?  86% of consumers will pay more for a better customer experience  Poor customer experiences result in an estimated $83 billion loss by US enterprises each year because of defections and abandoned purchases
  5. 5. Why Should Customer Loyalty & Retention be a Top Priority?  Unhappy customers are more likely to talk than satisfied customers… • 25% of customers say something positive about purchases • 65% are likely to speak negatively • 23% of customers who had a positive experience told 10+ people about it • 48% of customers who had a negative experience told 10+ people about it
  6. 6. Why Should Customer Loyalty & Retention be a Top Priority?  Customers taking the time to post a positive review about your business, appreciate if you take the time to thank them online.  Customers who engage with companies over social media spend 20% to 40% more money with those companies than other customers  80% of a company’s future profits will come from just 20% of their EXISTING customers
  7. 7. Financially, Customer Loyalty & Retention Can Help…  Reduced Marketing, Advertising, and Acquisition  Reduced Customer Turnover Expenses  Increased Overall Loyalty Equals More Profits  Increased Up-selling and Cross-selling
  8. 8. Financially, Customer Loyalty & Retention Can Help…  Increase in Referrals  Boost in Brand Recognition and Awareness  Less Time Spent Creating New Relationships  More Feedback and Suggestions
  9. 9. What Makes Your Customers Come Back?  They feel appreciated  They received great service from you  They find tremendous value in your product or service  They can get special discounts going forward (by joining some type of customer loyalty and rewards program)
  10. 10. What Makes Your Customers NOT Come Back?  Your staff was not attentive or they were rude  They did not feel appreciated  Your product or service didn’t meet their expectations  Your product is not priced appropriately
  11. 11. How Can Your Business Start Building Customer Loyalty & Retention Immediately? Sign up at my Blog; www.autoshopmarketing101.com to get my upcoming “Why Customer Loyalty” eBook Report, it’s FREE!
  12. 12. Email Marketing & Email Coupons  Most internet users use email  Easily personalize communications and build relationship with customers  Consumers love getting “deals”  Will come back to you if they like your product and/or service
  13. 13. QR Codes & Mobile Apps  Both are growing in popularity every day  Use them as ways to build your as well as make offers to your list  Give users something valuable to make them scan your QR code or download your mobile app
  14. 14. Mobile-Friendly Websites  Websites that are not mobile-friendly frustrate customers  Could prevent them from doing business with you while on the go  Could turn them off completely sending them to your competitors
  15. 15. Social Media Marketing  More than 1 billion social media users  Customers tell others what they think of you on social media  Monitor, engage, and respond to your customers to initiate repeat business from them
  16. 16. Online Reputation Management  Monitor and respond to customer reviews made on review websites and business pages  Publish informative content about your company online regularly  Maintain a positive image online to keep your happy customers coming back
  17. 17. Providing a Quality Product or Service  No matter how good your marketing strategies are… they won’t come back if your product or service is of poor quality  Always focus on providing excellent customer service  Keep all communications with your customers on a “personalized” note to build trust
  18. 18. Be Consistent and Create a Comfortable, Positive Tone  Stay in touch on a regular basis with customers – do some testing to see how much is too much or too little  Make sure your employees are happy and loyal; if not, their negativity could spill over to how they handle your customers  Maintain a clean and comfortable environment for your customers
  19. 19. Make it ALL About Your Customers  Target your marketing efforts to different segments of your customer- base  Ask your customers what they want via surveys – and then give it to them  Always under-promise and over-deliver to build credibility
  20. 20. Implement a Customer Rewards Program  Great way to generate repeat sales from customers  Costco, Staples, CVS, have very successful reward programs, why not you?  Customers are eager to accumulate reward points for future purchases
  21. 21. Implement a Customer Rewards Program  Plan it out  Implement it  Make it easy for people to sign up  Make sure your rewards are very valuable  Pick the right program and initiate it  Tell EVERYONE to join!
  22. 22. By: Ed Burckhardt (800) 520-9498 ed@ecommnow.com Thank you for viewing my presentation! Contact me if you’d like to know more…

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