For some reason, building client loyalty is not something that most business owners get excited about…But they should!

Here are a few reasons why:

• A study from Harvard Business School found that a 5 percent increase in customer retention increases business profits by 25 to 95 percent.
• It is significantly more expensive to sell to new vs. existing customers.
• Businesses have a 5-20 percent chance of closing a sale with a new customer. However, they have a 60-70 percent chance of selling to an existing customer!

What is customer loyalty?

When a customer is truly loyal to a company, they will pay more or wait longer for a product or service, rather than purchase from a competitor. This loyalty is built when a company consistently meets and exceeds customer expectations.

Customer loyalty is created through establishing and nurturing a relationship. It’s not a one-sided transaction. Customers must feel like they know and trust you. In return, they will want to support you.

Businesses that inspire loyalty among their customers have a big advantage over those that do not because your customers will continue to buy from you whenever they can, AND, they’ll tell their friends and family about you, too! This is a huge advantage to your business all the time, but especially during times of economic uncertainty.

Loyalty is like trust. It’s not given, it’s earned. And just like trust, it can be broken in an instant.

One way to assess your client loyalty is to consider what their reaction would be if you stopped doing business. If you stopped providing the service you do now, would clients be upset – or just head on over to another service provider? If you stopped sending your weekly newsletter, would readers notice its absence in their inboxes? If you closed your brick and mortar location, would you hear from customers who missed you – or would they just drive down the street to a similar store?

With that said, loyalty is a two-way street. What is your reaction if you stop hearing from a client? Do you keep in touch with former clients, checking in on them regularly, and letting them know you valued working together and that your door is always open to them? Don’t underestimate the importance of maintaining those relationships. Plenty of businesses make that mistake, which can be to your advantage. You’ll stand out as a friendly, personable, and grateful person to do business with.

How to Build Customer Loyalty

The three steps you must take to build and sustain customer loyalty are:

1. Exceed expectations – Surprise customers with excellent service above and beyond what you typically get.
2. Make them smile – Make an emotional impact in small but meaningful ways.
3. Be unforgettable – Create experiences for your clients or customers that they won’t soon forget, or stop talking about to everyone they know!

Are you providing excellent customer experiences across all channels and at all times in your business? One of the ways I encourage my clients to meet all 3 of those factors with their clients is the simple act of remembering their birthdays. Nothing makes a client feel good like a call or small gift on their special day.

Easy Ways to Foster Customer Loyalty

Here’s a checklist of ways you can stay on top of client loyalty since it is one of your greatest business assets:

• How much attention do I pay to my current clients?
• Could I pay more attention to them?
• Do I regularly reach out to them, see how they are doing, and see if I can do anything for them?
• Am I ever too busy or preoccupied to show them my appreciation?
• How much attention do I pay to my former clients?
• Do I have a system in place to check in on former clients semi-regularly so that I don’t pass up opportunities to do business with them again?

What other ways can you foster customer loyalty? I challenge you to examine how you can exceed expectations, make an emotional impact, and dazzle customers in your own business! I’d love to hear your ideas!

At Celeste Giordano Coaching, I support my clients in growing businesses that will thrive for decades to come, or what I call Legacy Businesses. If you’ve ever felt like your clients just aren’t all that loyal to you, I’ll show you how to build a Legacy Business that inspires serious loyalty. Contact me today.

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Celeste Giordano’s mission is to help business owners develop the skills, knowledge and attitude necessary to “DoublePlus™” their income and become effective and inspirational leaders in their fields. Whether it’s taking your successful business to the next level or starting a new venture, she will teach you the exact skills and strategies you need to enroll more quality prospects, build a rock-solid team, and break through obstacles to achieve real profit and lasting success. Celeste is a professional business growth specialist, a master sales strategist, and dynamic speaker with more than 40 years experience in direct sales and managing high-performing teams.

To learn more about Celeste, click here.

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