Brand loyalty: a crucial point for small business owners

The customer acquisition journey is a long and winding road. It’s not only difficult but also costly. According to Huify, it costs 5X more to acquire a new customer than retain an existing one, and just by increasing your customer retention by 5%, you can increase profits up to 95%! While it’s vital to consistently market your brand to new customers, it doesn’t make sense to aggressively look for new buyers when existing ones. It’s zero-sum. That’s where the brand loyalty debate comes in. Of course, it takes money to acquire new customers and retain existing ones, hence the need to nail your marketing budget. That’s where some small business loans from a reputable fintech lender can help.

small business owners

 

What is the relevance of brand loyalty?

Loyal customers are highly tolerant buyers who stick with your brand even during tough times. They’ll not only help you weather hard times but also beat the competition without having to lower prices.

Here’s why brand loyalty matters:

 

Slash customer acquisition costs

Various stats out there show that it costs 3 to 30 times more to attract and onboard new customers than retain existing ones. Thus, having a loyal customer base helps you slash marketing expenses in the end.

 

Repeat purchases

Loyal customers make repeat purchases and end up spending more on other products. You can expect more revenue from loyal customers.

 

Referral source

Brand loyalists are usually happy and excited about your products and service. Thus, they share their experiences and spread word of mouth to others. They become brand advocates who refer more customers to your brand.

 

Get honest feedback

One of the most important things brands can get from customers is honest feedback. That’s what you get from brand loyalists to help you improve your products, services, and customer experience.

 

Five strategies to build a solid brand loyalty

Deliver on quality and value

Avoid letting your customers down. Simply be what you say you’re, and let your products do what you say they do. Don’t just offer quality goods and services, but maintain the value, so you don’t give your customers a reason to question your offerings.

Then go ahead and deliver on your promises to the highest standards possible. If you promise same-day or second-day delivery, try your best. That’s how you build trust. If you exceed your customers’ expectations, they are less likely to look elsewhere.

 

Keep your customers engaged

Don’t let your customers wonder whether you still exist. Develop an effective content strategy and post regularly to educate, inform, and engage your buyers. Keep them in the loop with new developments and business strategies your brand is adopting to improve customer experience, new products/services launches, and any great deals. Communication shouldn’t be one way, though. Social media channels and emails are great platforms to allow customers to interact with your brand with questions, complaints, compliments, etc.

 

Focus on customers experience and service

Things will go awry at times, but how you handle dissatisfied customers determines whether they will stick or ditch your brand. That’s where excellent customer service can help you turn a bad situation into an opportunity for another sale.

Don’t let your customers feel like all you want is to make a sale. Instead, focus on customer experience and service, and let your buyers think that you care. If they raise any concerns, get in touch immediately, and understand them in every way.

 

Reward brand loyalty

Rewards are one way to increase brand loyalty. That’s where having a loyalty program for your brand can help push brand loyalty a notch higher. Depending on your brand, rewards can be points-based, discounted deals, exclusive product features, store credit, and more. They help encourage repeat purchases, referrals and inspire more action.

 

Build a community

Online communities and groups help bring your customers together. They can share their views and stories freely, opening another avenue to communicate better and understand your customer base. Community activities are also great ways to build brand loyalty. Get involved in projects and other community activities that help showcase your brand as one that cares.

 

Fund brand loyalty with small business loans

It helps to partner with the right lenders you can turn to when you need money quickly to boost your marketing efforts. It’s where fintech lenders come in. Unlike banks, online lenders have a simple application process, fewer requirements, and offer small business loans within a short call. Visit the link in the intro to learn how to apply for a small business loan in five simple steps.

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