Your loyal customer base is comprised of your most profitable customers. These are the customers who are worth more to your business because they return to purchase from you again and again.
You’ve probably heard of the Pareto principle, more commonly known as the 80-20 rule. This is when 80% of “x” result is due to 20% of “y” subject base. For ecommerce, the numbers break down a little differently. Loyal customers may only make up about 20% of your entire customer base, but they account for upwards of 50% of your sales!
Even knowing this, a lot of businesses will get distracted by the rush and instant gratification that comes from brand new customers. In doing so, rewarding their loyal customer base oftentimes falls to the wayside. Don’t get caught by this common pitfall!
Yes, generating new customers is important to any business; however, having a process in place to maintain your loyal customer base and also turn new customers into loyal customers is even more important. So, what’s the secret to increasing customer loyalty? What’s the most important thing you can do to keep customers coming back to you again and again?
Simple. Sell customers what they need, not just what will put money in your pocket.
Seriously. Be a consultant, not a salesperson. If it’s the right thing to do, say “no” to your client every once in a while. You are the expert, that’s why your client chose you to help them. Keep in mind, the key word here is help.
Sometimes businesses get so caught up in profits and increasing their bottom line that they forget to serve the customer. But, that’s what we’re supposed to do and that’s how we’re most successful.
When a customer knows you’re willing to do right by them and have their best interests in mind, even if it means less money in your pocket, they’ll know, without a doubt, that you’re worthy of their trust. Once they trust you, it’s just a matter of continuing to build the relationship long-term.
So, the best thing you can do to start offering better customer service and earning loyal customers? Treat them like human beings, instead of dollar signs.