It’s no secret that building customer loyalty is essential for the long-term success of any business. When customers are loyal, they not only continue to do business with your company, but they also become advocates for your brand, referring others to your business and providing positive reviews and testimonials.
With today’s growing chaos and economic uncertainty it’s important to build a base of loyal customers you can rely on during challenging times.
What Netflix Taught Me About Building Customer Loyalty
One of my New Year’s Resolutions was to save money, or rather be more mindful of the money that I spend on a monthly basis.
So I started the year off by signing up for Rocket Money. I kept seeing advertisements about how it can help you identify areas where you are spending money, even if you aren’t aware of it. This includes things like subscriptions you forgot about, or purchases you made but meant to return etc.
I was shocked by my results. I found over $200 of monthly expenses that I did not even realize I was spending, and more than a few others I was questioning whether I really needed. For example, I had this tennis app that I barely ever used, a credit card that came with a hefty annual fee, and then there was my Netflix membership.
I have to admit, on the rare occasions I watch television, I love Netflix. However, the truth is I rarely ever watch it. I travel so much, and by the time I get to my hotel room, I work a little and fall into bed.
When I am home, my husband and I usually play golf or tennis or take a bike ride, eat a late dinner, and by the time we catch up on the day, ten minutes of television is all we can handle before we fall asleep.
So, I was questioning whether I really needed to pay this monthly expense.
But then Netflix got smart.
It was almost like they found out somehow that I was considering canceling my subscription. About a month ago, I started getting regular updates and emails from them. Emails with ideas and suggestions about shows and documentaries I might like, based on my past viewing and other data they had gathered on me.
I have to admit, their suggestions were good. They suggested the docuseries BreakPoint, and then Full Swing right after that, and just today, I got a suggestion on a movie I am now watching in my hotel room as I write this blog.
Why Building Customer Loyalty Matters
See, Netflix gets it. They do not take their client’s loyalty for granted. Rather than waiting to re-win my business after I leave, they work to re-win my loyalty. And believe me, keeping a loyal customer before they leave is so much easier than winning them back.
Building customer loyalty impacts almost every important metric it takes to grow a business. Loyal customers drive performance, bottom-line results, cross-sale ratios, referrals, efficiency… The list goes on and on.
See, Netflix did not assume that I knew how to maximize my relationship with them. In other words, they made it their responsibility to ensure I was gaining value from their product. And that simple step not only kept my membership, but it increased my usage, got me to add Netflix to our second home in Charleston, and has me talking to all my friends about the great shows I am watching on their network.
Building client loyalty matters.
5 Strategies To Building Client Loyalty
So how do you build customer loyalty in your organization?
Know Your Customers
This is probably the most important step in building customer loyalty. Netflix was not just randomly throwing shows in my direction. They were sending me shows and documentaries that were of HIGH interest to me. It felt more personalized, more customized and was of far more value to me. Creating loyalty begins with knowing your customers.
Building client loyalty is about reaching out before your customers ask you for something. Once a customer buys from you they trust you, and that trust means they believe when you have a product or service that will be of value to them you will ensure they know.
Reach out to customers for no reason at all other than to check-in with them, to ask great questions, listen to what they are doing, learn the challenges they are facing and what opportunities they are excited about with them. In other words, follow up with them so you can continue to learn and look for ways to proactively help them. Customers continue to change, and the only way to know how they are changing is to follow up and stay in touch.
Focus on the Right Customers
Although any customer who remains loyal is a good thing, getting the right customers to remain loyal is an even better thing! For every company there are customers you are best positioned to really help. To build customer loyalty, focus on those customers when reaching out and being proactive.
Reward Customer Loyalty
And last, but not least, reward loyalty. Back in college, I tended bar to earn a little extra money, and I had regulars. You know those customers I would count on to come in everyday or every single week. So every now and then I would give them a free beer or a burger on the house- why? Because I appreciated their business. Rewarding your good customers goes a long way to ensure your customer’s stay with you and building customer loyalty.
So yes, I am now a loyal Netflix customer. While I am still looking for ways to save money on a monthly basis, as long as Netflix keeps reaching out, making good suggestions, they will keep me as a loyal customer.