Boosting Brand Loyalty & Customer Retention With Loyalty Bound
Raise your hand if you’d like to increase your profits by 95%.
You did raise your hand, didn’t you? All you have to do is increase customer retention by just 5%, and studies show you can nearly double your profits. Not only do brand-loyal customers stay with you for the long haul, it’s a lot less expensive to retain customers that attract new ones.
That’s not to say it doesn’t take effort. In the construction equipment and heavy duty trucking industries, developing and nurturing loyalty requires a genuine commitment to being more than a sales and service outlet for customers.
Customer lifetime value can be a shocker.
If you’ve never computed the lifetime value of a customer, you should do that. Multiply the average amount you expect Customer Doe to spend with you over a year times the number of years you expect that customer to buy from you. Sure, their spending amount can fluctuate considerably, depending on how often this customer purchases new equipment, but you can account for that in your average. Regardless, when you look at that lifetime total it’s easy to understand the bottom line value of loyalty.
And there’s more. The best loyal customers don’t just buy from you year in and year out, they actively promote your dealership by posting great reviews, sharing their positive experiences and your marketing content with their colleagues and others. You can’t monetize this “evangelist” behavior, but you can certainly appreciate the results.
What can you do to boost customer retention and brand loyalty?
- Establish a loyalty program that offers meaningful rewards. For example, ADI’s industry-specific Loyalty Bound program allows you to thank repeat customers with incentives and easily manage the program with customized software. The program’s tangible benefits make it an extra selling point for first-time customers, too. ADI’s team of experts can help you with all aspects of your marketing to attract and convert new leads as well as continue to build loyalty.
- Find ways to reward customers for referrals as well as repeat purchases. When you acknowledge their evangelistic efforts, customers will work even harder to promote your brand.
- Provide online content that is truly useful. Marketing content with hands-on value builds your credibility and establishes your OEM or dealership as an ongoing resource for prospects and customers. Beyond that, though, you’re helping customers build and protect their own business. That kind of partnership builds loyalty.
- Think like a Millennial. Yep, they’re young – 18-29 – but they’re the newest generation of drivers, operators, fleet managers and contractors. Secure their loyalty now, and you’ll be in business. Millennials are the “connected generation,” underscoring the critical importance of your social media activity and optimizing your website and overall marketing for mobile device users.
- Appeal to their emotional side. Your construction or trucking audience may be “tough customers,” but their decisions still involve emotional as well as fact-based factors. Fear of not taking the right action, pride of ownership, greed (saving money and expanding their business) and love (appreciation for your insights and solution-oriented content) all play.
- Provide online content that’s eminently sharable. A compelling headline, great images, offering insider tips, soliciting help and opinions from your friends and fans and readers – the more engaged they are, the more loyal they will be. Pique their curiosity, amaze them, allay their uncertainty, resolve a problem.
Brand loyalty starts the first time you “touch” someone. Focus on excellence right from the beginning. Address problems right away. Identify why some customers don’t stick with you and work to make the necessary changes. And remember that “satisfied” is the new “who cares?” Loyalty is earned, and that means doing and being more than expected.