The importance of “loyal customers” is increasing day by day among stores.
Do you know the loyal customer definition and the benefits of the store? And how can you increase the number of loyal customers?
Easily mean loyal customers
“Customers who are fans of store products and services and have high loyalty and attachment.”
Three characteristics of loyal customers
-They buy goods and services from a particular store many times
-They do not use the products or services of other competitors
-They actively recommend products and services to third parties
Also, according to Pareto’s law, 20% of in-store customers are loyal customers, and sales from loyal customers make up 80% of the total. The cost of acquiring loyal customers is said to be about 20% of the cost of acquiring new customers, which is very low.
As you can see from the three features and Pareto principle, loyal customers continue to benefit the store and replace ads with compelling reviews. This is very valuable to the store. That’s important.
Nowadays, it is difficult to differentiate from competitors only by the price and quality of products and services, and it is very important to acquire as many loyal customers as possible, and the number of loyal customers is increasing. Many stores, whether or not they continue, focus on enhancing service and resolving customer dissatisfaction.
Differences between loyal customers and good customers
Basically, customers with high sales and profits and customers with many visitors are called good customers, but among the good customers, loyal customers are the top.
Unlike loyal customers, who are continuously generating a lot of profits, some customers are temporarily generating high sales.
There is an index called NPS (Net Promoter Score) as a criterion for determining whether you are a loyal customer.
NPS is clarified by having customers rate it on a scale of 0 to 10.
NPS recommends customers with 9–10 points, which is a loyal customer base.
Customers who score 7–8 points are not loyal customers, but good customers who generate high sales. However, good-selling customers are not always suitable for stores.
Even if you are an aggressive customer, if you do not have the strong attachment of a loyal customer and are buying products or services by inertia, or if you are not satisfied with the product, you will probably buy it at another store.
As a characteristic of low loyalty customers who are temporarily generating high sales
-They bought it because it was on sale
-They just bought it in fashion
-They bought it because it was troublesome to buy it at another store
-They don’t use the contracted products or services, but I keep paying by inertia
-Cancellation is troublesome and has not been canceled
-Because it is a long-term contract, you cannot cancel it even if you want to cancel it.
And so on.
In addition, the causes of the temporary increase in sales on the store side are as follows.
-Rather than strengthening products and services to eliminate dissatisfaction, we rely on temporary promotions to make a profit.
-There is an additional charge for low cost additional options that are rarely used as cross-selling.
-You have not specified a way to cancel the contract, or you are intentionally obfuscating and trying to maintain the contract to prevent cancellation.
Some stores can jeopardize the sustainability of their business without realizing that they are “temporary sales by low loyalty customers.”
Benefits of acquiring loyal customers
The presence of loyal customers is absolutely necessary for long-term and stable business expansion.
The method of acquiring loyal customers leads to long-term and stable business expansion. Check each one to see the benefits of the store.
-They will increase sales in the long run
A loyal customer will repeat you over and over again.
By growing into a loyal customer, the customer’s LTV (lifetime value) will improve and sales will increase in the long run.
-They will advertise on behalf of the store
Loyalty and loyal customers spread their products and services to third parties by posting on social media and posting reviews.
Advertising with loyal customers is attractive and effective, so you can increase awareness and attract new customers without having to pay a lot of money for your ads.
- Their high quality feedback leads to improvement
Faithful customers use our products and services with a strong attachment.
Therefore, it tells the store what you like and what you need to improve.
At times, we provide information that leads to major business improvements from a completely different perspective than the store side.
Information obtained from loyal customers. It leads to subsequent improvements
Greatly helps to enhance our products and services and resolve complaints.
How to acquire and develop loyal customers
You are a loyal customer who gives your store various benefits, what methods can you use to win it?
Introduction of items that are useful for acquiring and nurturing loyal customers
Cultivate loyal customers with CRM
CRM (Customer Relationship Management) is a method of identifying and analyzing customer information and taking a personalized approach to each customer.
With CRM, you can manage good customer relationships and develop loyal customers.
Cultivate loyal customers with CEM
CEM (Customer Experience Management) differentiates you from your competitors by focusing on and analyzing the emotions your customers experience when purchasing products and services to provide a better experience. It’s a technique called.
Compared to CRM, the main feature of CEM is that it can be delivered closer to the customer.
Use MA to develop loyal customers
MA (Marketing Automation) is a tool that supports marketing such as customer acquisition and development.
MA can be used to automate a large number of time-consuming and labor-intensive tasks.
With MA, you can improve the quality of products and services for new and existing customers and build long-term, good relationships with them.
Cultivate loyal customers with an ambassador strategy
An ambassador is someone who promotes a product or service.
It is the ambassador’s job to participate in various projects and promote them by word of mouth.
Advertising by ambassadors can not only attract new customers, but also increase the loyalty of ambassador customers.
By making your customers ambassadors, it is a practical way to grow your ambassador’s customers into more loyal and loyal customers, and loyal customers will acquire new customers.
A loyal customer is very important and absolutely necessary for a store because it has great advantages such as “providing a lot of profits in the medium to long term” and “promoting on behalf of the store”. Existence. How much you value and increase such loyal customers will lead to the success of our business.
Remember that the basic idea is “customer first”. For a store to succeed, it needs to iteratively analyze and improve how it creates high-quality products and services, understand customer sentiment, and provide a great customer experience.
