Tips to increase revenue and brand loyalty
One of the most difficult aspects of managing a business is increasing revenue. As a business owner, you have to grapple with increased competition in the backdrop of increasing operation costs. While most businesses focus on customer acquisition to boost revenues, research shows building brand loyalty can have an even greater impact. A recent report shows that 43% of customers spend more money on brands they are loyal to highlighting the importance of building brand loyalty. The same report shows that the probability of selling to an existing customer is 60-70%, while the probability of selling to a new prospect is 5-10%. If you want to increase your revenue base, you have to start thinking about strategies that will build loyalty.
From integrating secure online payment systems, customer referral programs, and excellent customer service to responsiveness, there are many ways of building loyalty with an eye on increased revenue. This article explores some of these strategies in detail. Keep reading.
- Create a customer reward program
One of the best techniques to retain customers is through gifts and rewards. This is the shortcut to customer loyalty and today; it is possible to personalize such gifts for better impact. With the data collected from your systems, it is possible for instance to wish a customer a happy birthday and even send them a personalized card and a gift.
This gesture will not only help in retaining the customer, but also promote your business by way of word-of-mouth marketing. Your business revenues will increase through return purchases and from referrals by your satisfied customers.
- Prioritize customer service
Businesses today struggle to increase revenues due to high customer churn rates. One of the main reasons for customer defection is poor customer service. According to the American Express 2017 Customer Service Barometer, 33% of customer say that they would consider switching brands in case of poor customer service. The same report shows that more than half of Americans have scrapped a planned purchase due to poor customer service.
These numbers emphasize the importance of providing excellent customer service. You must be there for your customer at all times because this is the only way to ensure they complete a purchase and remain loyal to your brand. If you want to improve your revenue numbers, you should invest in the best customer service.
- Provide value
Your customers already know many other brands selling the same goods and services as you. As such, your main focus should not be on the products themselves but on the value they add to the customers’ lives. You need to distinguish your brand as one that provides value, not just through what you sell, but also through community participation among other things.
- Engage with your customers
In today’s wired world, your customers are everywhere and they want to interact with your brand on all platforms. It is no longer enough to build a website because your target customers are on social networks and this is where you should also be. Make sure you connect with your customers as this gives them a sense of belonging and makes them loyal to your brand.
Use available platforms to inform your customers of new trends in the industry, your company activities, and anything else that is relevant to your relationship with the customer. Your customers should feel a part of your business as this will keep them coming and they will also promote your brand. This is a smart way to increase revenue for your business.
- Offer conveniences
If you make life easier for your customers, they will keep coming back and this will improve your revenue base. For instance, if you accept payments online free, offer feedback on social media, do free deliveries among other things this will retain your customers and increase revenue.
There is no denying that the current business environment is tough but if you focus on customer retention, it is possible to stay ahead of the competition. These two-prong customer retention strategies will not only build customer loyalty but also increase revenues.