80% of your future profits will come from 20% of your existing customers. [http://tinyurl.com/c8p7oej]
A 5% increase in customer retention can increase a company’s profitability by 75%. [http://tinyurl.com/c8p7oej]
After looking at these statistics, it is clear that customer retention could really be the deciding factor between a business’ success and failure.
Create Brand Fans or Loyal Customers
Don’t take this the wrong way, advertising and promotions are an important part of business success, but the focus should not necessarily be on bringing in new customers, rather the focus should be on maintaining those customers who already do come in.
If you look at some of the world’s biggest and most successful brands you will notice that they all sell more than just a product, they sell an image, a feeling, or a lifestyle.
Take a look at Nike, Apple, or Coca-Cola. Have you ever noticed that the majority of their advertisements do not focus on their products? They focus on passion, dedication, happiness, or whatever emotion they want their products to instill in their customers.
These companies sell emotion. They sell a lifestyle or feeling that only comes from buying THEIR products.
Once a customer is sold on that idea they then become loyal to that company or brand.
So how does a smaller business create it’s very own loyal customers?
Focus on the purpose of your business. What image, feeling, or lifestyle is the by-product of your business?
Do you want to sell strong family values? Do you sell quality time with friends? Do you sell luxury or relaxation? Or do you simply want to sell happiness?
Decide on how you want your customers to feel and focus on those emotions as opposed to trying to sell your product.
Foster a Feeling of Community
Another way to create brand fans is by providing them with a feeling of community and a chance to interact with one another.
People want social proof. They want to know that they are not the only ones who feel a certain way or like a certain product. They also want to be able to express themselves in a safe environment.
Social Media is probably one of the easiest ways to provide this.
A well-managed Facebook, Twitter, or Instagram account is the perfect place to nurture these communities.
Constantly producing visually appealing content that is interesting or educational for community members is the spark that will hopefully ignite conversations between fans. They will also share this content with their friends and loved ones.
If the community becomes strong enough, they will do almost all of your advertising for you as well.
So remember, the key to success is customer retention. Create brand fans loyal to your products. Sell them an image, feeling, or lifestyle, not just a product. And foster a community amongst your fans using social media. If you do these things right, you will definitely see results.