How To Keep Them Coming Back for More

We’re all familiar with the adage that acquiring a new customer costs more than retaining an existing one. The actual number varies depending on the source and industry, however 5 to 10 times seems to be the generally accepted range. 5 TO 10 TIMES MORE! Think about it. Think about how much is being spent on marketing initiatives - the majority of which is typically spent on finding new customers. Why aren’t we focusing more on customer retention? Because it is so much more difficult. It requires patience, discipline and effort from departments beyond marketing. Read on to discover some best practices on how to build strong customer relationships.

Timeless Tips to Help Build Customer Loyalty

Customer loyalty is not a new concept, nor are these ideas necessarily novel.  But they still hold true today, perhaps more than ever, as budgets are cut and consumers’ attention becomes harder and harder to maintain.

1. Communication: What is said, where and how are all important when building a lasting relationship with customers. Two way communication is absolutely essential. This means giving the customer the opportunity to engage and have a conversation, rather than talking at them. 

Timing is also key. Understanding consumers' purchase and ownership journeys can help ensure the right message is delivered at the right time. But it’s not only about the sale. In fact, the sale should follow naturally, not be forced into the conversation. Have fun! Share stories! Listen, watch, learn!

2. Authenticity. When customers open themselves to building a relationship, they want to be sure that a brand is true to how they have presented themselves. They want to make sure, when the makeup is washed off, there are no surprises. 

As marketers, we need to be true about our motivation. The last thing someone wants when opting in for brand communication is to be bombarded with time-limited sales events. For example, one of the members of our team requested information from a company whose products a friend had raved about. In less than 48 hours she has received no fewer than 10 emails, including one that said “Final reason and reminder”. Stop already! Being overwhelmed by unwanted emails is one of the surest ways to get a potential customer to opt-out of receiving your communications..

3. Consistency We all have that favourite cafe, store or restaurant that may not be the fanciest or received a Michelin star, but we go there because we know exactly what we’re in for. No surprises, other than what the soup of the day or today’s specials will be. In marketing, it’s important to be consistent with our brand. This includes things such as tone and visual presence.

Some brands are funny, silly and a little edgy. Some are all business. Neither is right or wrong, as long as they are consistent. Customers make a choice based on their comfort zone, and it’s important to respect that.

Visual consistency is also important. We recognize brands not only by their names and logos, but also by the colours and fonts that they use, whether the images in their communications are crisp and colourful or black and white and slightly muted. This quick bond or understanding is what can stop people from scrolling by or flipping the page too quickly. 

4. Customer Service: The sale is complete, now what? How about saying thank-you? A member of our team recently purchased a piece of jewelry from a high-end jewelry store. As much as she would have loved the diamond earrings set in platinum, her purchase was considerably more modest with a lower price tag.  She was shocked a week later to receive a thank you card from the sales woman who helped her. Wow! Such a simple gesture can go a long way in making a customer feel appreciated.

Obviously, depending on the industry, it doesn’t make sense to send a thank-you card to every customer. But we can definitely do better than we are now. What’s stopping us from at least calling to say thank you? That’s an easier one. Because there might be a problem. Did you know that customers who have a problem resolved satisfactorily are more likely to turn into a loyal customer than one who never had any issues? This is known as the service recovery paradox. This isn’t a new concept, but is more relevant than ever with consumers able to publish their experiences online with just a few keystrokes.

Granted, customer service is not typically within the purview of the marketing department. But it’s one of those opportunities that can be a win-win for everyone. The marketing department can save money by focusing on retention rather than conquest, and things can be a little easier for the sales department dealing with customers with whom they already have a relationship.

A Brand That Wins at Customer Loyalty

Building a relationship with a customer is no different than building a relationship with someone in our personal life. Communication. Authenticity. Consistency. Working through problems. This is key to creating loyal customers, freeing resources to help conquer new ones.

Porsche is a fantastic example of how to promote customer loyalty (they have been ranked number one in the premium car category in the J.D. Power’s U.S. Automotive Brand Loyalty Study two years in a row!) It’s not just their vehicles, but a true team effort from the engineers to the dealerships to the Porsche Track, Travel and Ice Experiences. They know how to make driving a Porsche unforgettable.

There are reasons why companies like Apple, Amazon and Domino’s consistently have some of the highest customer loyalty. Which brands are you most loyal to and why? Share your thoughts in our comments on our LinkedIn post.