Loyal customers lead to easier profits

customer loyaltyGet customers. Get more customers. Make more money. Isn’t this how business works?

What if I told you that your existing customers are the best source for profits through more sales? You might not believe me. You might ask me to tell you why sales to existing customers can lead to more profits and how you can position yourself to take advantage of sales to existing customers. OK. I will.

People buy on emotion more than need. You want to be in the position of being the business that someone thinks of when they are ready to purchase. Why? Because people buy from businesses they trust. Your task as a manager or business owner is to establish the points of connection you and your staff will use to build trust with your existing customers so they think of you first when they are ready to purchase your product or service. This calls for a plan or a schedule so you connect with your customers on a regular basis and build emotional value through a relationship with your customers.

There are three important values for businesses to develop in order to create emotional value with the customer:

  • Connectivity – You and your entire staff have to be connected and in sync, so senior managers are connected to junior managers, etc. Another way to think of this is that everyone has to be working toward the same end result, and everyone has to know what that desired end result is.
  • Creativity – You have to let your people solve the problems. Your people have to be empowered to make decisions that solve the problems and preserve the trust your customer has in you. If you’ve ever rented a car from Enterprise, you’ve experienced this creativity in action.
  • Integrity – You have to deliver what you promise. If you don’t, you’re never going to have loyal customers or loyal employees.

People buy from people they trust. They buy more because of you than because of your product or service. Developing your customer loyalty strategy is a huge competitive advantage you should explore to grow your business, especially when I tell you this:

It costs your 4 times as much money to find a new customer than to sell to a loyal customer.

If you’ve built trust with the customer and your staff, you’ve establishd your points of connection, and you’ve worked to develop the three values described above, then you are on you way.

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