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Loyalty Costs Less Than Facebook Ads

I just don’t understand this?

Why do businesses put so much emphasis, time and effort on attracting new clients instead of communicating and upselling with existing clients? Why are you watering the neighbours’ grass instead of watering your own first?

Too much emphasis is put on running Facebook ads, having special offers for new clients and paying a fortune to influencers.

Here’s a thought – focus on your existing clients and show them you value them. Communicate with them regularly. Ask them to refer you if they love you. Collaborate with them and make them raving fans that market for you.

Loyalty has been forgotten in the race to have the bright & shiny, to have more likes and go viral. Vanity metrics aren’t going to pay your staff or your bills.

Here is an example of a recent experience I had.

I have been a loyal flier with Virgin for many years. When they first launched into the market their marketing was fun, irreverent and full of personality. Now they are just as boring as Qantas.

But to rub salt into the wound, their lack of customer service and care for loyal customers,  is the most upsetting thing of all. What you can expect in 2022 from Virgin:

  • Autoresponder messages saying they will reply in 14-21 days – seriously, we don’t want to wait 24 hours let alone weeks!!
  • Social media customer service staff refer you to incorrect numbers.
  • Customer service staff that send form responses that are non-committal and don’t answer your questions.
  • A total lack of personality (that they used to be known for).
  • No care, no responsibility attitude.

And unfortunately, they are not alone in this. They are accompanied with their friends Telstra, Foxtel and most banks. As well as many small businesses who have forgotten the importance of customer loyalty.

They have all forgotten one key ingredient in business success – it’s called loyalty.

Instead of pouring thousands of dollars into attracting new clients, a great place to start is with your existing client base.

NB: I am not saying don’t market to new clients – that is necessary. But don’t do it at the expense of your current clients.

Why you need to focus on loyalty?

A loyal client loves you already

They are already a client, so you have the hardest part covered because you had already made a sale. You aren’t trying to convert them.  If they have had a positive experience, you can leverage this through reviews, word of mouth referrals and repeat business.

They cost a lot less to close the sale

Getting a new client costs you more than selling to an existing client. Why are you spending thousands of dollars on Facebook ads that aren’t converting over investing in your past or existing clients? It makes no sense. I recently rang our broadband supplier (Aussie Broadband), after a better deal. I was told they only had deals for new customers. WTF! How much money have I spent with you? This just sends a message saying existing clients aren’t important and we don’t care about you.

They will refer business

Ask any business owner what their best lead source is and most will say word of mouth referrals. So why are you spending so much money on Facebook ads? Why are you asking for referrals and using this as part of your marketing? I have refer people to businesses that offer me great service both online and IRL (in real life)

Loyal clients don’t appreciate seeing new clients getting better deals

All businesses need new clients – I totally get it. But it should not be at the expense of existing clients. I remember years ago I had 3 home loans with CUA and we were looking for a car loan. They offered the worst deal from everyone we spoke to. This was an easy sell for them. So not only did they lose my car loan, we moved all our loans to another company. Over half a million dollars of business at the time.

Positive reviews sell to more people

Your potential clients are looking at reviews. It is one of the first things a potential client looks at. A client that has had a good experience will tell others which makes them another marketing manager for you.

Treat them well and they will sell.

Loyalty has a positive impact on your brand reputation

This is so simple. If clients love their experience with you, they tell others whom share with more people. Your reputation is everything when it comes to winning new business.

Most businesses need to market to new clients, that is a given. But consider shifting the focus to looking after your loyal customers. Have a strategy and a process to execute this in your business.

Remember to water the grass you have first!