Is customer loyalty important? Absolutely yes! Be loyal to your customers and they will be with you. Discover the importance of referrals, how to apply and then fully understand the techniques on how to retain your customers.
In the previous article we talked about how you make the market fall in love with your idea: start with marketing. Today we decided to talk about the importance of customer loyalty and referral. We will show you different sides of this important factor, almost imperceptible in the eyes of users, but fundamental to the life of your business and to allow you to climb.
After all, what would a startup be like without satisfied customers?
Many underestimate this aspect, for this reason we decided to give you useful advice on how to retain customers and make your growth viral. Here you will find out how to create referrals for your startup.
We cannot wait to show you!
So let’s move immediately to our focus: to retain customers.
Here are the essential rules for retaining customers
Password? Customer in the center!
Times have changed, the era of “I make the useful product or offer a service that nobody has” is over forever. To date brands that have never gone out of fashion and the startups that have had greater success have been those that have involved entire masses of people: they made themselves loved and they loved in turn.
Those who instead disappointed the expectations that they have made?
Get lost in the abyss of failure. For what reason? Very simple: they created a negative buzz or did not generate any word of mouth!
From here you can understand the importance of customer loyalty.
Customer loyalty: how do you measure a customer’s satisfaction?
According to professionals of advanced marketing, customer satisfaction brings significant benefits, such as:
– The increase in revenues
– cost reduction
– The increase in intangible resources
The cycle between the loyalty of a client and a start-up or a business is due to the cycle:
Knowledge-Trust-Purchase-Experience-Positive word of mouth.
To complete this cycle and get to the ultimate goal of customer satisfaction it is a duty to know the behavior of each individual customer.
Now let’s move on to the next step of our focus on customer loyalty.
Loyalty to its customers? Start from the cohort
Now that you understand that customer loyalty is essential, let’s move on to the concept of cohort.
Are you aware that for the Pareto principle, 20% of your customers bring 80% of their turnover? Such as?
Filling and analyzing the cohort! But what is this strange word?
The cohort is made up of customer groups that have similar characteristics, such as turnover or loyalty values.
By putting satisfaction and loyalty in your system, you can identify different types of customers.
We divides them into four types of customers easy to understand:
– The apostles: those who for the satisfaction achieved will always remain faithful to your startup
– Hostages: those who are not satisfied but do not see alternatives around
– The mercenaries: the most volatile personalities who migrate according to the best offers
– Terrorists: The most dangerous! Those who are extremely dissatisfied and generate negative word of mouth
These distinctions are not to be taken literally, because they may vary depending on changing conditions. There is no certainty that a satisfied customer will generate positive word of mouth in any case.
Surely loyal customers also in this context is interesting, but as we said above no one can ever give us confidence that the satisfied user will recommend the product / service.
It’s good to know that there are many other ways to analyze customer satisfaction based on the size of wallet and share of wallet, i.e. how much they spend and if they buy more different services on your platform.
The indicators that indicate if you have adopted the right methods to retain customers are:
– Customer Retention Rate (loyal customers at the end of the period)
– Average customer seniority
– The Churn Rate (the rate of abandonment)
– The possibility of repurchase
Nowadays it is possible to monitor every step the customer makes in your platform. If you have a high number of churn rates and a low number of CRR, then apply: new customer tests, Survey, Live chat and last but not least, heat maps!
If there are highly dissatisfied customers, you will need to investigate the reason for the unsatisfactory experience, change course, and turn them into apostles as terrorists. To this immediate benchmark on the potential satisfaction that can be obtained from customers, we must therefore add a careful analysis of the reasons for dissatisfaction. In turn, with respect to the latter must start a study of which countermeasures to take to solve problems and improve the relationship with customers?
From how to retain customers to referral
After talking to you about how to retain customers, we move on to the referral. At this point it is time to explain what the referral is and how to apply it to achieve sales and conversions. The referral is the word of mouth marketing, nothing more than the most powerful means available.
Have you ever asked a friend for advice? Where to go on vacation? Or what app did you use to book that fantastic vacation?
We all went there!
Have you ever seen an ad on Facebook or Google and think “I cannot believe it! That’s just what I was looking for “!
If the answer is YES it means that you were back in the right Target at the right time.
Referral marketing or word of mouth, both positive and negative, tend to address a defined target. In other words, it is about turning to a known audience, of followers and friends. This allows your startup’s message to spread more effectively than most other marketing channels.
The trust is another element that makes the difference. In recent years the phenomenon of influencers has erupted. In this regard, have you ever wondered why brands collaborate with these characters?
Simply because a user who listens to an authoritative voice in the chosen sector is more inclined to purchase. By authoritative person, we mean the one who is part of the family and the circle of friends, up to the testimonial and blogger.
We get to the point! Which strategy will win for your startup? Influencer marketing aside, I recommend these tactics to be applied regardless of the type of product or service offered:
– Create an excellent service of assistance and an unforgettable shopping experience, if it is a product also a distinctive packaging that induces a WOW effect. Amazon teaches us that reliable customer care allows you to climb anywhere. It is advisable that the customer is contacted to understand the degree of satisfaction.
– Talk with the data through Google Analytics, which has a special section for referrals. Based on the data, you can contact the sites and study a plan to get more traffic.
– Every referral is right that it is also rewarded with a fee. In this case, the teacher is Dropbox who with the strategy brings a friend has conquered an entire market.
– Incentive reviews
People trust more than the opinion expressed by other consumers than any advertising, also seen as deceptive. Therefore, it is essential to encourage customers to leave a comment or a review.
In any case: do a lot, but a lot, attention!!!!!
With a simple Facebook post, through a story on Instagram or a tweet, the average user can now reach thousands of friends. A small misstep is enough and your startup could be cut off from the market.
If you are not very practical in the industry, you do not have much experience in such contexts or you do not feel ready enough to outline loyalty strategies, the advice is to rely on professionals in the field in order to be followed, well directed and adequately prepared to deal with your clientele.
Author Bio: Ryan is a Digital Marketer and a writer. He has six years of experience regarding digital and content marketing. Furthermore, he also helps people to get Amazon suspended account reinstated because he has command over this.