Which is better, retaining customers or getting new ones? How about I give you a few benefits of customer loyalty and let you decide for yourself. You will be interested in learning the tips to retain Nigerian customers afterwards.
- People always pay more money for a product or service they are used to. Especially when it is excellent and meets their needs.
- If there is a new product or service your business is offering, they are more likely to patronize it.
- Loyal customers always spread the good news of your brand to their network. (Customers referred by other customers have a 37% higher retention rate)
- Customers that repeatedly buy your product or service and have built a relationship with your brand over time will easily forgive your errors as far as service delivery.
- They easily engage with your brand providing feedback that can help you improve your product.
Importance Of Repeat Customers
The reason it is difficult to persuade a new customer to buy from a business is that they have no experience with its products and/or services. You don’t have to go through that with a repeat customer. This is why customer loyalty is important.
READ MORE: 4 Reasons Why Your Business Failed
So what is customer loyalty? It is simply the likelihood of a customer buying a brand’s offering over and over again because of the satisfaction, positive experience and value the brand has provided the customer.
A study shows that repeat customers have an average conversion rate of 60% – 70% and just a 5% increase in customer loyalty can increase profitability of a business by 25% – 95% while new customers’ conversion rate is typically 5% – 20%.
With these 4 top tips to retain Nigerian customers, you too can build customer loyalty for your business and retain them.
1. Improve The Quality Of Your Product Or Service
There is a very good chance that they are other people selling whatever you are selling. If they aren’t and you are pioneering that business, soon others will begin it to do it too. A large number of Nigerian customers, no matter how loyal they are, will readily go for the best option of a product or service in the market. It is imperative, then, that you constantly improve on the quality of your products/services.
The quality of a product or service is determined on the basis of whether it satisfies customers’ expectations in terms of consumption and use.
How To Improve The Quality Of Your Products
To always outperform your competition, you must, first of all, make quality improvement part of your business’s culture. This is what will make you consistently improve, if not you might do it once and become complacent.
Secondly, you should listen to your customers. Always take their feedback seriously and make sure you improve to suit their taste. Learn to not be offended, no matter how good your product is it could be better and no matter how good your service is they might be a better to do it.
Which brings us to the third thing you can do. Invest in training. If you manufacture goods, learn how to improve on them. If you offer services, for instance cutting hair, learn how to cut hair better, learn new styles that other barbers do not know, even if it means spending money to do so.
2. Identify And Understand Your Customers
You can know customers individually. Get their contact information like name, phone number and address. You should also get other data about your customers like their demographic details, preferences and buying habits. This enables you to anticipate what they might need and provide them with the kind of services that will meet those needs. Customers are always more likely to stick with what they know.
3. Create A Loyalty Program For Customers
Create a system that rewards customers for buying your products or services repeatedly. This is a very effective way of retaining your customers. Studies have shown that at least 66% of customers will change their spending habits (buying more) knowing that there’s a reward involved and about 84% will remain with a brand because of a reward program. Several businesses have loyalty programs that have not only made them retain customers but also gain new ones. Uber, for example, rewards customers with points for riding with them and when those points have accumulated, they can get free rides.
4. Prioritize Premium Customer Service
Customers always come back to patronize you when you make them feel respected and appreciated. It is natural for humans to gravitate towards where they are valued. This provides intrinsic motivation for the customer to return again and again, boosting profits. Research has shown that 77% of satisfied customers will share their positive experience with family and friends.
No matter how good what you are selling is, if you are disrespectful and condescending to your customers, they will quickly switch to your competitors for that product or service because nobody wants to be looked down on and disrespected. While it is necessary to keep getting new customers, you should make customer retention and loyalty to your brand a priority.
Also, listen to your customers. It does not only help improve your business but also keeps them happy and they will definitely choose you over your counterparts. As they say, “The path to customers’ hearts lies through your ears.”
What other ways can a business retain their customers? Comment down below.
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My name is Emmanuel Ejiga. Content lead of OG Capital
I am a writer. Technical writer, song writer, and sometimes fictional writer.