Small businesses are always on the lookout for ways to gain more customers and enhance profits. One of the best ways to do that is by increasing repeat sales, according to entrepreneur Corey Shader.
Implementing effective customer loyalty strategies will work wonders for any small business, no matter what you do and who your customers are. When you enhance your rate of customer retention, you positively impact sales and profit, as well as your brand reputation.
Here are four proven customer loyalty tips for your small business.
1. Create a Rewards Program
There’s a reason why so many businesses have their own customer rewards programs — they work. When you reward customers for making purchases, they are more likely to feel valued and, as a result, come back for more.
These rewards programs obviously have a cost to them. If you offer a free product for every four that a customer purchases, for example, you are essentially offering them a 20% off discount.
But, keep in mind that this isn’t a hard cost you’ll incur. In other words, it’s not an expense you have to pay for; you’ll just be receiving less per purchase when you factor it out.
In the end, though, having these repeat purchases will be way more valuable than the discount you’re offering.
2. Incentivize Referrals
When loyal customers refer other people to you, those other people often become loyal customer as well. Some of your customers will do this on their own, as they like to spread the word about companies they like.
A great way to build loyalty among your customers is to incentivize these referrals. You can offer free products or services — or a major discount off a product or service — for every new customer that a current customer refers to you.
Again, there is hard cost to this program, but it pales in comparison to what you’ll get in return.
3. Engage with Customers
Customers today want to feel valued and a part of the businesses they make purchases from. A great way to do that is to connect and engage with your customers on a human level.
There are many ways you can do this. Interacting via social media is very effective. You could also host events or charity drives to connect with people in your local community.
When your customers feel included, they’re more likely to feel valued and more likely to become loyal.
4. Share Your Values
It’s extremely important for businesses to stand for something today. Corey Shader explains that a business should have clearly-stated values that they share with publicly.
Consumers want to know that the companies they are spending money with are doing something positive for the world around them. You don’t have to donate all of your profits to charity to be effective in this regard.
Stand for something and don’t be afraid to let others know what you stand for. It’s go a long way in building loyalty in your current and prospective customer base.
About Corey Shader
Corey Shader is a self-made entrepreneur, consultant, investor, real estate developer, and founder of several companies, notably Insurance Pipeline. Operating primarily out of Ft. Lauderdale, Corey’s endeavors span across the nation, consulting for start-ups, and sitting on the board of digital media and senior healthcare agencies. As a consultant, Corey helps young businesses develop sales funnels and maximize profitability. Shader takes pride in challenging others to push themselves to be their very best — he believes in constant self-improvement, inspiring others through sharing his own life experiences.