why is customer loyalty important for small businesses?

Here is a quick example of how your company can create your own rewards programme for your existing customer base. Although your most loyal customers only represent 20 percent of your audience, they provide up to 80 percent of your revenue.

why is customer loyalty important for small businesses?

Here is a quick example of how your company can create your own rewards programme for your existing customer base. Although your most loyal customers only represent 20 percent of your audience, they provide up to 80 percent of your revenue. When small businesses evaluate who to target with discounts and reopening ads, returning customers are probably the most profitable investment. The likelihood of spending more is due to the sense of trust the customer has developed over time towards their favourite brand.

To make this support available to your customers, set up a customer service email address or, if your company has the capacity, a live chat tool. Loyalty programmes are a great benefit for repeat customers, and offering them benefits that suit them helps you attract other loyal consumers like them. As a business, you need to consider the interests of your customers, especially if your loyalty programme is based on the "use it or lose it" principle. Small businesses vary by industry and product, but the basic elements of good customer loyalty remain the same.

Instead of generic communications, loyalty programmes help you determine which customers will be most attracted to specific promotions. Because they like your brand and want you to improve (or stay great), loyal customers won't mind taking the time to share their valuable feedback, which you can turn into actionable marketing tactics. Brand loyalty is important for smaller businesses, as they can establish a personal relationship and customers feel positive about directly supporting a local business. Through such a programme, you can incentivise customers to continually buy your products by offering them future discounts or even free items.

Brand ambassadors can be incentivised by offering them a customer experience that delights and even surprises them. Fortunately, your loyal customers look forward to reopenings, because for many, these local shops once offered a sense of home. For example, these valued customers can be rewarded with special offers, exclusive sales, discounts and coupons. By collecting and analysing data on returning customers, shops can spot trends and tailor their offers for more efficient operations.

Mamie Dardashti
Mamie Dardashti

Hardcore organizer. Total twitteraholic. Amateur internet aficionado. Infuriatingly humble pop culture buff. Evil beer nerd.

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