5 reasons why customer loyalty is so important in 2024
We live in a fast-paced, hyper connected world. Technology is constantly changing the way we do things, we have instant access to people and products. In business, we need to recognize this hyper connectivity and change because it means that customer loyalty is more important than ever.
Here are 5 reasons why customer loyalty is so important in 2024 and what that means for your overall marketing strategy.
#1: Cost-Effective Marketing
Getting new customers to discover you can be hard. It always takes a bigger investment in advertising and promotional activities to break through all the noise to let someone know you exist. However, retaining existing customers is more cost-effective. Loyal customers are more likely to make repeat purchases, which can be a higher return on your marketing investment.
Build loyalty programs into your current marketing strategy so you have constant touch points with existing customers. This is why personalized email strategies and ongoing social media strategies are so important. If you’re not sure what types of tactics will keep the conversation going, doing VIP shopping events for existing customers and other special offers are great ways to find reasons to connect.
#2: Amplified Word-of-Mouth Marketing
Get on those reviews. Ask for them. Respond to them. Get on it. I cannot tell you how many times a review has influenced my purchase decision. Loyal customers who have had positive experiences with a brand are usually more than willing to share their recommendations with friends, family, and followers. These organic endorsements carry significant weight and can reach a wide audience. This will also then help you to connect with new customers at a lower cost.
How do you do it? Ask for reviews. In your post-purchase emails, send a link to get a Google review. Or if it’s a larger purchase, ask for a testimonial (either written or video) via email. The worst that can happen is they ghost you or say no. But that’s not the end of the world. Best case, they do a glowing review that influences someone else’s purchase. It’s worth the ask.
#3: Resilience During Economic Uncertainty
We’re just coming out the pandemic and many businesses didn’t recover. Outside of that, economic downturns and market fluctuations are just inevitable realities of the business world. If you have worked to build up your customer loyalty, it can make it easier to get through those difficult times. Customers tend to fiercely support the businesses they are loyal to.
Remember that it can’t be a one-way street. You need to show your customers that you are grateful for their loyalty – reward them for their loyalty. Things like discounts and free gifts with their purchase are great, but sometimes even just acknowledging their loyalty and saying a simple thank you goes a long way.
#4: Customer Feedback
One of the things that comes up a lot during workshops with entrepreneurs at various stages is customer feedback. If you’re just getting started you don’t have a customer base to ask, but if you have an existing customer base – especially if you have taken the time to build loyal customer relationships – they can provide you with constructive feedback and insights. This can help to improve products, services, and the overall customer experience. By fostering open communication channels with loyal customers, businesses can gain invaluable insights into their preferences, pain points, and areas for improvement. This feedback loop enables businesses to continuously iterate and innovate, staying ahead of the competition and meeting evolving customer needs effectively.
#5: Enhanced Customer Lifetime Value
Customer lifetime value (CLV) measures the total revenue generated by a customer over their entire relationship with a business. Loyal customers tend to have a higher CLV compared to one-time purchasers or occasional buyers. By nurturing customer loyalty and fostering long-term relationships, businesses can maximize the lifetime value of each customer, driving sustainable revenue growth and profitability.
It should always come down to better relationships with your customers. Marketing is all about customers. From standing out among the crowd to making things more cost effective, 2024 is the time to start focusing on getting and maintaining a customer loyalty.