A lot of businesses have uncovered one of their most valuable resources: happy customers. When you go above and beyond to make your customers happy, you create a loyalty that lasts and keeps them coming to you time and again for their needs. What’s more, loyal customers become a wellspring of referrals for your business. They want to send more customers your way by recommending you to friends, family, coworkers, other businesses. Have you started tapping into your own most valuable resource to grow your brand?
Research has shown that customers who are referred to you by an existing customer are better for your business than one who has come to you from other sources. Referred customers:
- Have a net promoter score (NPS) that is 15 points above the average
- Have a lifetime value (LTV) that is 25% higher
- Have an average order value (AOV) that is 20% higher each year
- Are 25% more profitable over their lifetimes
- Are more than four times more likely to refer more customers to you
Essentially, this means that a customer who is referred to you will spend more in any single transaction and make more purchases from you throughout their lifetime. They will become loyal customers and then begin to refer even more potential customers to you, and on the circle goes. This continuous cycle can help bring you more valuable leads than any marketing materials that you produce or ad campaigns that you invest in. Focusing on making your customers happy and inspiring their loyalty is the best way to create brand advocates who will work to help grow your business.
Loyalty programs are some of the best tools for developing a strong customer relationship. A customer who knows that they will be rewarded for giving you their business is more likely to become a repeat customer. Think of airline miles, hotel rewards points, even restaurant punch cards. They might pay a little more, but in the end it is worth it because they are earning something back. These loyalty programs go a long way towards creating happy customers.
Another way your business might go a step further to foster customer loyalty is by finding ways to thank your customers with things like wearables, gift cards, or even donations in their name to a charity of their choice. Find what is most appropriate for your network and choose something that will be appreciated by your customer.
Since happy customers are more likely to refer new customers to you, setting up a referral program can also be beneficial. Encourage your best customers to send new prospects your way and reward them for it when that referral turns into a sale. This saves you money on cost per lead and a happy customer does a lot of the selling for you because they can vouch for the quality of your products or services.
A happy customer really is one of the most valuable resources for any business. Treat them right and they can become some of your biggest brand champions, sending you new business that will help you grow. Reward them and they will go further to help your company succeed.
Sources:
https://www.extole.com/blog/the-future-of-loyalty-is-referral/#referred_customers