Four Tips to Establish Customer Loyalty

Sustaining a loyal client base is one of the biggest challenges that small businesses face each day. You may have hundreds of competitors, so how can you market your product to obtain consumer loyalty? Consumer loyalty comes from attaching a certain perceived value to your product in the mind of your consumer. In order to create this perceived value you have to establish relationships and trust with your clients.

In an interview with John Assaraf, million-dollar marketer Romina Chatterjee, shows how you can use little-know trade secrets to increase our revenue by 100, 200 and 300 percent in 90 days or less.

Here are some useful tips to help small-business owners maintain and generate loyal customers:

Tip #1: Know the real value of your product or service.

Loyal consumers will continue to come back to your business because they believe that there is some value to it. A customer will hear about your product or service, try it once, and if they are happy with it, they will come back time and time again. There is a sense of reward or value that they associate with your product. When you are trying to attract your ideal client, you have to know the unique value of your product or service that will create loyalty in your consumers, and tell them what it is.

Tip #2: Know the lifetime value of your customer.

Not every customer is worth the same amount to your business. Someone who spends $50 a month is not worth the same as a customer who spends $500 a month. Look at your database and see which of your clients are most profitable to your business. These people are your ideal clients, the ones you need to target for consumer loyalty.

Tip #3: Create a reward program for ideal clients.

The 80/20 rule applies here. This means that you need to identify the 20 percent of your consumers who are generating 80 percent of your revenue. These people should be given the most benefits, privileges and perks. Typically it is best to reward these consumers with something that is in sync with the product that they attracted to. For example, if you have a customer who spent $5,000 on your designer jewelry, you could give them a $100 off coupon for their next purchase. This not only shows your appreciation for their return business, but it is also an investment to get them to come back again.

When providing incentives or benefits to your most important consumers, an element of surprise or wonder is always great, especially when it is unexpected. It always creates the best response because it makes them feel valued and appreciated. These small actions establish that bond that in turn becomes consumer loyalty.

Tip #4: Communication is Key.

When you establish a trusting relationship with your loyal consumers, you have to have great communication. Loyal consumers are loyal because they feel like an integral and important part of your business and your success. Keeping them informed of the good and the bad is essential!

Open and honest communication not only strengthens the loyalty of your customer, but they will support you though tough times. As a company if you are in sync with your consumers and there is clear communication between the consumer and the company, it is a straight and mutually beneficial relationship. 

The bottom line is that loyal customers are the best and most powerful source of free advertising and publicity. Loyal customers become advocates; they will refer your business or service to friends or family because they have established a relationship and a bond with you. They will typically spend more money with you per product category. They will typically try out the new products or services you provide. Most importantly they will give you feedback, since they feel like an important part of your business they care enough to tell you how you are honestly doing. Loyal consumers are the key to your business growth and success.