Local customer loyalty: Create meaningful connections online
What makes customers stay loyal to a brand?
In the current economic climate especially, it has never been more critical for local businesses to retain their existing customers. Did you know that 65% of a company’s revenue comes from the repeat business of existing customers? Creating customer loyalty can often be challenging for small and medium-sized businesses, especially when competing against larger companies with more significant marketing budgets. However, there is a way for local businesses to level the playing field and retain customers. By using effective online strategies, it's possible to remain top of mind for customers, even when they're not visiting your store or utilising your services.
It’s 5-25 x more expensive to acquire a new customer than to keep an existing one. That's why in this article we'll be exploring the online strategies which are the key to creating customer loyalty.
Focus on creating a strong online presence
Offer a loyalty program
Communicate regularly with customers
Utilise email marketing
Craft a customer referral program
Focus on creating a strong online presence
One of the best ways local businesses can increase customer retention is by creating a strong online presence. This can be done by developing an active social media presence, creating a user-friendly, engaging website, and having a variety of ways customers can communicate with the business. Creating an online presence not only helps retain current customers, but it can also help attract new ones.
Offer a loyalty program
Offering a loyalty program is an effective way for local businesses to increase customer retention. By offering rewards for repeat services, purchases, or referrals, customers are incentivized to remain loyal and remain engaged with your business. The loyalty program can be easily implemented online via your website or mobile app, making it convenient for customers to enroll and track their rewards.
Communicate regularly with customers
Regular communication with customers can improve customer retention rates. By sending personalised emails, newsletters, or updates via social media, you can keep your customers informed of any changes or developments in your business. Ask for feedback from customers and use their opinions to serve them better. Similarly, respond to feedback and complaints quickly and positively. This way, your customers feel they have an active role in the business and that their opinion is valued.
Utilise email marketing
Email marketing is another excellent way to retain customers. By collecting customer emails, a business can send tailored newsletters, promotional offers, and other value-add content. The key to a successful email campaign is personalisation. Tailor emails to fit the customer's interests and purchasing history. It's essential to strike the right balance between promotion and adding value or entertainment.
Craft a customer referral program
A person is more likely to try a product or service recommended by someone they trust. Therefore, a customer referral program can be a valuable tool in increasing customer retention. Encourage current customers to invite friends and family to your business and reward them with discounts, promotional items, or other appreciated value adds. This way, satisfied customers bring in leads and help your business grow while feeling valued for their loyalty.
Try to keep it meaningful
In conclusion, retaining customers in today's business landscape is more vital than ever, and an effective online strategy can significantly help. By creating a strong online presence, offering a loyalty program, communicating regularly with customers, utilising email marketing, and crafting a customer referral program, local businesses can retain their customer base and keep them loyal for years to come.
Remember, customers prefer businesses they feel a personal attachment and emotional connection with, so prioritise building meaningful connections with your customer
Who are you and what is this?
This post is one of many aimed at helping to support owners, managers and franchisees with growing their local business. It's been lovingly researched and written by the expert team behind LocalMark, a London UK-based local SEO service that helps connect UK trade, service & retail businesses with nearby customers. If you found this helpful and could benefit from more of the same, be sure to share, follow us on social (links below) and sign up for our newsletter.
If you’d like to create meaningful connections online, our local SEO Content Creation service could benefit your local business.
Meet the author
From a long line of small business owners, local marketing expert James understands more than most the unique challenges they face every day. He’s been advising local business owners and their agencies on digital marketing since 2000, and established our local SEO service in 2021.