There are lots of benefits to having a loyal customer, and sometimes these are overlooked by business owners. Attracting new customers is a focus that should not always take up the majority of your time. Let’s take a look at why.
One of the top benefits of having a loyal customer is that they will be happy to recommend your business to others. How many times have your friends said that they only buy a certain product from a certain place? Your goal is to have your company be that go to place.
A loyal customer becomes an ambassador for your business, without them even realizing it. They will gladly recommend your services, and word of mouth marketing is extremely powerful.
Just think about some of the major players that do this successfully; McDonalds, Burger King, eBay and Starbucks, amongst others. So why can’t you do the same with your business?
A New Versus Loyal Customer
To attract a new customer to your business takes a huge effort on your part. You need to attract their attention first, then offer coupons and discounts as an incentive to buy. Then you need to take the time and effort to educate them about your brand and your product line. This involves customer service time and advertising money.
Your loyal customers already know and understand your product, of course they just love them! In fact, they are free salesmen for you. When you release a new product they are more than happy to purchase it without question.
In addition a loyal customer is more likely to leave you feedback on your business. They are also really good about pointing out the good and bad points in your business, without being judgemental. Their intentions are to actually help you improve a certain area of your company. They understand that as a business owner, you wear many hats. They just want to bring something to your attention, in case you missed it.
Research has shown that it costs a business owner six times more money to acquire a new customer than to develop a loyal one. It is more cost effective to work on building a relationship with your current customers.
We are not saying that you should stop focusing on attracting new customers. What we are saying is that you want to appreciate those customers you already have a little more than you may be currently doing.