Accomplishing one sale in a crowded marketplace is challenging enough, but maintaining that customer is much more time-consuming than attracting that customer through advertising and marketing to do so. Converting these first-time buyers into loyal repeat customers will deliver long-term profits and reduce the costs to acquire new customers. In addition, the continued growth and profitability of your business will be greatly impacted by loyal customers who are consistently purchasing your products.
This article provides several simple yet impactful strategies to take first-time buyers to lifelong customers. Each strategy is supported by expert advice, real-life examples, and current analytical information. You will discover how to build an excellent relationship with your customer, which in turn will develop a strong brand and create future sales revenue that is consistent.
Why is Customer Loyalty Important?
Before discussing the strategies that can create a loyal customer, we should understand the value of a loyal customer:
Repeat buyers tend to spend approximately 67% more than first-time customers over time (Bain & Company);
The cost of acquiring a new customer is 5–7 times the cost of retaining a loyal customer; and
The increase in retention of existing customers by 5% can result in a profit growth rate of between 25% and 95%.
Loyal customers will become a word-of-mouth marketer for your business, create an economy of sales for you, and be the basis of your business’s sustainable growth.
1.Creating a Positive First-Purchase Interaction with Customers
Your first impression when interacting with customers will define their experience with you.
Regardless of how you intend to develop this relationship.
Make sure to deliver what you promise when a customer first purchases from you; If you said you’d deliver something “fast,” make sure to deliver it quickly or offer them something else in addition.
- You must keep your buyers informed regarding the status of their order and/or their service.
- Add little surprises; perhaps a thank-you card, a free sample or a coupon.
By doing these things, you can enhance your customers’ perceptions of your business.
A skincare company included a card thanking the customer and including a free trial of the product on their first order. As a result, there was a 28% increase in second purchases of the customer’s order within two months. The first impression creates trust; trust creates loyalty.
2.Provide Excellent Customer Service – Proactive
A customer’s service experience is what they will remember; not your products.
- Readiness (time to reply) – The average consumer expects to receive a response within an hour via social media.
- Empathy, not scripts, while solving problems.
- All methods available for customer support should be available to buyers; chat, email, phone, etc.
- Follow up once the customer’s issue has been addressed to confirm satisfaction.
Expert Opinions – “Loyalty develops not through perfection but through what you do when things go wrong.” (SHEP HYKEN) When customers feel appreciated, they are more likely to remain loyal to your company.
3.Make It Personal
Making your customers feel like they matter can make them more likely to purchase from you repeated. Personalization = customers will buy from you & be more loyal to you. 80% of shoppers would be more likely to buy from brands that have a personalized experience.
Here are some ideas for how you can personalize your customers’ shopping experience:
- Recommending products based on their purchase (the first purchase)
- Addressing them by name in emails and messages.
- Providing discounts specifically for them.
- Providing onboarding/usage guides specific to them.
Example of personalization. A coffee subscription service suggested personalized roast recommendations for their new customers based on their first order. This personalization increased subscription renewals by 40%.
4.Keep a Relationship Without being Annoying
Many businesses ignore their customers after they make their first purchase which is a big missed opportunity.
Follow up ideas:
- Sending customers a “How to Use Your Products” email
- Requesting Customer Feedback
- Sending Personalized Product Recommendations
- Sending Loyalty Discounts
- Engaging with Customers on Social Media via: “Show us Your Results!”
Case Study:
A Fitness Equipment Retailer sent customers a beginner workout regimen after their first purchase! This follow-up email is a great example of providing added value and contributed to a 35% increase in repeat orders within three months. You can create a sense of connection with the customer through consistency in communication.
5.Introduce a Customer Loyalty/Rewards Program
Although many people equate loyalty programs with large corporations, they are also beneficial to small businesses.
Some Key Features of a Successful Loyalty Program Include
- Earning Points for Purchases
- Earning Rewards for Referral Activity
- Multi-Level Rewards (i.e., Silver, Gold, Platinum)
- Member-Only Discounts and Promotions
- Birthday/Anniversary Rewards
Statistics That Support The Need For A Loyalty Program
According to Yotpo, 52% of customers join the loyalty program of a brand they shop with on a regular basis, and customers who are enrolled in a loyalty program buy more often and spend more money per transaction than customers who are not enrolled in a loyalty program. If designed effectively, a loyalty program will convert amateur shoppers into regular customers.
6.Bring Customers Together In a Community
Communities help people create emotional connections with one another. A strong emotional connection breeds loyalty!
Ways To Create A Community For Your Customers
- Facebook/WhatsApp Private Groups
- Free Educational Webinars
- Challenges with Prizes
- Customer Generated Content
- Ambassador Programs
Example
Peloton developed a community-based model using instructor-led group rides, community engagement hashtags, and a sense of belonging. This emotional connection helped transform many customers into vocal advocates for Peloton, thus resulting in high customer retention rates for Peloton.
7.Collect Customer Feedback Pay Attention To It!
Customers want to work with companies that listen to their feedback.
Ways To Do This Include
- Ask Customers To Complete A Short Survey After Their First Purchase.
- Inquire About The Positive And Negative Aspects Of Their Experience With Your Business.
- Thank Customers With A Coupon or Some Reward For Participating.
- Use Customer Feedback To Develop and/or Improve Your Products/services.
8.Remove Roadblocks to Smooth and Easy Returns or Support
The biggest killjoy to loyalty is a long and painful return or support experience.
Quick Methods to Improve It
- Have clear return instructions.
- Don’t force customers through hoops to get an answer.
- If applicable, create exchange/credit options.
- Make warranties/guarantees visible.
An easy return policy builds confidence and trust because it tells customers that you’re confident in your product.
9.Immediately Reward Their 2nd Purchase
The 2nd purchase is the most important purchase after the first one. Make it easy and irresistible.
Examples That Work:
- “10% off your next order” coupon included in the first shipment.
- Follow-up email containing a personalized offer.
- Free shipping on the next order.
- Send them a limited-time Thank You discount.
Once a customer has 2 purchases, the chances of them becoming a loyal customer increase dramatically.
Conclusion: Loyalty Is Built Through: Repeat Customer Care and Connection
Building loyalty with first-time buyers does not happen by accident; it is built through intentional actions. By providing, a great first experience, personalizing your communication, getting customers involved and consistently delivering value you can turn a one-time buyer into a long-term brand ambassador who will help grow your business.
Loyal customers are more valuable than just making you money. They form the foundation of your business and are critical to its success.
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