It is up to five times cheaper to retain a customer than acquiring new ones, and it’s been proven too that loyal customers buy more and buy more often than casual consumers. There are some industries were repeat custom is more commonplace than others (for example, subscription services or in service based businesses) but no matter how likely it is, it should be something companies strive for.
So once a customer has been recruited and made their first purchase (more on how to encourage them to do this with authentic peer proofing here), just how can they be persuaded to stay and not stray to competitors? Follow these rules to keep them coming back!
Assume they won’t remember the business when their next purchase decision comes along
A consumer making a single purchase does not necessarily indicate an intention for them to return to do so again. Businesses should never rest on their laurels and assume that their product or service was so memorable it will immediately be recalled favourably upon the next occasion a customer needs to make a purchase, but instead, should maintain communication and remind them of exactly why they shop with them again. Stay in touch and keep branding front and centre of customer’s minds so that when the time does come, they don’t only remember the product or service, but they do so positively and with intent to purchase repeatedly.
Position the brand as relevant
If a business has access to information on a customer (not necessarily identifying information), they should use it to tailor communications and present as relevant to them as possible. If customers make purchases through a social channel, advertising can be placed upon it; if customers express a preference for one service feature over another, the focus in communications can be swayed toward it; and if customers often purchase two items at once, a package deal could be offered. Maintaining relevance helps build a positive perception of the brand in the mind of the individual.
Invite customers to collaborate and engage.
Customers are more likely to return to a business they feel invested in – and that doesn’t need to be in the financial sense. Engagement, customer advocacy and the usage of customers in formulating business direction and development are all key in helping consumers feel involved in a brand. What’s more, this can lead to the creation of UGC (User Generated Content) and reviews, which are invaluable tools in social proofing and building trust and authority.
Keep moving and keep communicating.
When communicating with customers, it’s important to keep them abreast with the latest developments and moves a company is making. If a new product, feature or service has been added to the portfolio – let them know! If there’s an offer or discount on – let them know! If there’s a new endorsement from a celebrity or a limited edition piece coming up – let them know! Ensuring that those who have purchased once from a brand understand how it is developing and what else they offer (other than their initial or original experience) increases brand recall and conveys other, related brand messaging.
Surprise and delight.
While going over and above to deliver on a customer’s expectations and desires may not be feasible (or, indeed, appropriate) every time they interact with a business, do so once in a while can hugely impact consumer perception of said brand, and its products and services. Throwing in something extra – be it an extra perk, a freebie, an invitation to collaborate or, well, anything else appropriate – can really boost brand image and make the customer more likely to recommend to others. Examples of ‘surprise and delight’ marketing being a success includes Kleenex sending branded products to those who posted photos of them being ill on social media (amassing over 650,000 impressions and almost 2,000 interactions); Mastercard’s ‘Priceless Surprises’ spontaneous gifts loyalty scheme (rewarding over 97,000 customers across 25 countries); and airline WestJet delivering surprise Christmas presents to passengers (resulting in hugely positive PR).
Too often, companies consider their products and services so good that customers won’t be able to resist retuning for more – and while that may well be the ultimate business goal, it isn’t usually entirely true. With competitors crowding marketplaces with messaging and clever campaigns, recruiting new customers from a myriad of channels, businesses need to remain savvy and smart to maintain their client base and keep them contented using their services. This comes only from truly understanding and working hard to meet the needs and desires of said client base – working with, and not just for, them in everything they do. Don’t take your customers for granted, give them the same respect and attention that you would when attempting to bring on a new customer. You will reap the rewards!
