Customer Loyalty — Why You Need It and How To Get It
Posted April 21, 2009 in Business, Marketing
To make money and stay in business, you need customers. However, you don’t always need new customers — in fact constantly finding new customers can drain both your energy and your resources.
So what is the best source of work?
While new customers are great and vital to the growth of your freelancing business, repeat business is the true key to your long-term success. Loyal customers who regularly turn to your business will boost your income, keep your business alive, and contribute to a long and happy freelancing career.
Why Loyal Customers are the Key
To illustrate my point, consider the following example. Imagine that you have a brick and mortar store. Compare these two customers to decide for yourself who is really the better customer:
- Customer A comes into your shop one time and buys a flat screen TV for $950.00. Customer A never makes another purchase.
- Customer B comes into your shop every week and buys their weekly supplies. They spend between $50 and $75 in your shop nearly every week.
Without taking into account customer loyalty, you might be tempted to think that Customer A is your best customer. After all, he or she made the larger purchase. (The flat screen TV sale might even have been the largest purchase of the day.)
However, if you take into account customer loyalty (and use a little math), you’ll soon realize that Customer B is actually a better customer for your shop. His or her annual purchases range between $2,600 ($50 x 52) and $3,900 ($75 x 52) every year.
Now, answer the question, which would you rather have ten of: Customer A or Customer B?
If you’re like me, you chose Customer B. Repeat clients like Customer B will keep you in business.
How to Get Repeat Business
Here are a few tips for getting repeat business from your customers:
- Add a human touch to your customer service. It’s a well known fact that most companies fail to provide adequate customer service. Just call nearly any 1-800 number and you’ll likely experience frustration as your call is transferred from one automated message to another. Don’t let your customers get lost in a technological loop. Provide a means for them to contact you directly and answer them promptly.
- Tell the truth, even when it’s not what the customer wants to hear. Sometimes freelancers have the mistaken impression that good customer service means always saying “yes.” They couldn’t be more wrong! Rather than agreeing to do something that you can’t really do (or something that isn’t in the best interest of the customer), be upfront with your customer. In most cases, your honesty will enhance your reputation. Saying “no” upfront is a lot better than saying “yes” and then not delivering.
- Being pleasant counts for a lot. My husband and I recently ate at our favorite restaurant. Now, the city where we live has dozens of restaurants. There are even three other restaurants located in the same shopping center as our favorite. So why is this particular restaurant our favorite?
- The owner and employees greet us by name and seem glad to see us.
- They remember our preferences. “No lemon in your tea, right ma’am?”
- They remember details about our lives. “How are your kids doing?”
- The food is good and the price is reasonable. (Notice this is last)
- Become the quality provider. I once tried purchasing my children’s clothing at the cheapest possible price. However, after one very cheap (and cheaply made) little outfit that I purchased for my daughter fell apart after she wore it only one time, I changed my tactic. It dawned on me that quality is often more cost effective in the end. I try to apply this quality principal to my business as well. I don’t want to be known as the “cheap” provider whose work “falls apart” the first time it is used and needs to be replaced with something better.
How Much Repeat Business Do You Get?
Do you get a lot of repeat business?
If you do, why do you think your customers keep coming back? If you don’t, what could you do to bring more customers back?
Related posts:
- How High Is Your Loyalty Factor?
- How To Double Your Customer Base Without Spending A Penny
- How To Provide Excellent Customer Service
- The Art Of Great Customer Service As A Freelance Web Designer
- How To Get and Use Customer Feedback
About the author: Laura Spencer is a freelance writer from North Central Texas with over 20 years of professional business writing experience. If you liked this post, then you may also enjoy Laura’s blog about her freelance writing experiences, WritingThoughts. Laura is also on Google+.
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27 Comments
Mitesh Solanki
April 21st, 2009 at 3:23 pmGreat post Laura. I would choose customer B hands down. We do often run into Customer A but it takes getting to know them in order to get them to become Customer B with more buying power. Customer service is by far the most important.
What are your strategies on getting Customer A to become a repeat buyer?
Laura Spencer
April 21st, 2009 at 3:34 pmHi Mitesh!
Well, there’s some suggestions in the How to Get Repeat Business section of this post. Also, it helps to establish yourself as an expert and be professional at all times.
Readers are welcome to throw in their own ideas as well.
Matt Keegan
April 21st, 2009 at 3:43 pmMy best customers have been with me the longest, people I can pretty much count on “being there” even these days when so much is unstable.
Several years back I began to market myself to people as someone who is reliable, committed to his business (versus being a hobby) and trustworthy. I consider myself to be the modern day proprietor; like the shop owner who has been there for ages, so have I. Maturity rocks!
Nicole Foster
April 21st, 2009 at 4:00 pmThis is a very useful article and Customer B sounds like the better option for a steady flow of income.
I barely have repeat customers coming back, they’re always new customers. I am always very polite and add a personal touch when I send emails. I want to be remembered, but I never seem to stick to old clients. I am thinking of a couple ways to get their attention to me again, maybe sending out a card on a holiday with a discount coupon or a gift of a free graphic design.
What would you suggest to me to get those clients back and turn them into loyal customer? This open to anyone.
Laura Spencer
April 21st, 2009 at 4:10 pmHi Guys!
I think a lot of times we don’t get repeat business because we don’t ask for it.
Have you tried contacting your customers and asking if there’s anything else that you can do for them?
Chesley
April 21st, 2009 at 4:40 pmCustomer B is great! I have been fortunate to have 5 customers who buy my freelance writing services repeatedly. I have also had a few come back two-three times. I agree that being approachable and personable, as well as offering quality, keeps clients coming back.
Asking if customers need anything else or perhaps offering more does work as well.
Nice post!
Colin Wright
April 21st, 2009 at 4:46 pmI actually try to strike a balance between A and B customers, because the A’s provide a large chunk of money up front, while the B customers will provide more money, but over a much longer period of time. This balance doesn’t stop me from trying to turn the A’s into B’s, though :)
Jonathan Kochis
April 21st, 2009 at 4:49 pmGreat article.
Asking for repeat business or simply informing clients about the other services we offer is a simple and effective way to transform customer A into customer B. This can be done in casual conversation or maybe through something more formal like an email newsletter.
The last suggestion has been on my to-do list for way to long!
Pantelis Vratsalis
April 22nd, 2009 at 4:42 amGreat Article indeed.
Customer B (loyal customers) is the most important part of a business, as there are quite several advantages for having them: does not need significant amounts of advertising spent to attract (in fact, it doesn’t require any money at all), provides a steady cash flow to your business (reducing the constantly present stress of cash flow fluctuations for a freelancer – and a business, as well) and finally is easier to be kept satisfied, as the customer’s needs are not a black box anymore.
Thanks again!
Lillie Ammann
April 22nd, 2009 at 8:25 amExcellent advice, Laura. Almost all of my business is from regular clients or referrals. One thing I do—that not everyone would want to do—is to offer a wide range of services so I can do a lot of different things for the same client. Many writers just want to write, and every freelancer needs to operate her business the way that works best for her. However, adding other services opens opportunities for more business from customers who already know and like you.
Nikhil
April 22nd, 2009 at 8:25 amGreat article….
Nice tips for making good relationships with the clients and Making the Income Slow yet Steady….
Thanks
Mihaela Lica
April 22nd, 2009 at 10:28 amRight, Laura! Loyal customers are vital for any business and it’s an art to keep them that way. Probably the most important strategy to keep them “loyal” and “happy” is to provide excellent customer support. This is valid for any business, not only for freelancers. But the customer support, if not backed up by professional services, will always look like an empty promise and will only cause problems in the end.
Laura Spencer
April 22nd, 2009 at 10:33 amGreat suggestions!
Lillie, I like the idea of providing additional services if you can do it. Mihaela – you make a very valid point about customer service. It’s important to see that promises made are also kept.
Laurie Phillips@Dead Company Club
April 22nd, 2009 at 10:40 amIt’s SO important to be genuine and honest with customers and future customers. I’ve found that selling by “people pleasing” is a trap. If you say yes to ridiculous requests just to win the work, two things are going to happen. First, your customer will take advantage of you. Second, their “loyalty” will only last as long as you continue to deliver on impossible schedules for too little pay.
If you want customer loyalty you need to earn their respect, not just kiss their behinds.
Solomon
April 22nd, 2009 at 12:52 pmHi Laura,
I must congratulate you for putting forth this article. This is the theme I’ve written a post on but waiting for the intuition to strike me. I liked the point:Tell the truth, even when it’s not what the customer wants to hear
This is where your professionalism and commitment to the cause comes forth. Often, it’s where many flounder. I’m also guilty of sometimes nodding my head for the fear that I might be on the wrong side of the clients opinion. But that’s what is needed.
I want to have the unmistakable human touch in all business ventures. Needless to say, only then they’ll be successful.
I liked the steward who called you by name and who genuinely serves you the best dish of the day.
Thanks for the tips!
Solomon
Mahmud Ahsan
April 22nd, 2009 at 4:53 pmVery nice and important article. I fully agree with you.
Sean Turtle
April 27th, 2009 at 10:13 amEarly on in my freelancing business I was a little wary of one (probably my most prolific) customer, who was the archetypal ‘I can do this designing business, I just don’t have the time’ and who insisted on ‘more fonts/more colour/louder’ for each project (despite offering financial services) and as relative noob to the game, I was a little reluctant to try and rein his enthusiasm in. Having said that, once I did have the conversation, a customer that could potentially have been type A seemed to respect my judgement and became a full-fledged type B.
In fact, knowing he could rely on me to do what was right the product (and not just milk the cash cow) resulted in him offering me a position – which I reluctantly had to turn down.
I think one of the most important points (already alluded to here) is to be honest about your work and remember why you’re doing it. If you show you care to the client, they’ll know they can rely on you.
Authority Networker
May 5th, 2009 at 11:19 amMaking yourself an indispensable source of information can establish your credibility, reputation and identity as an authority marketer. The more helpful and valuable your information is the greater the chance those customers will purchase from you or hire your services. This is the concept of attraction marketing – an internet network marketing lead generation tactic where you develop ongoing relationships with clients and moving them along the buying path in your communications to greatly increase profits on autopilot. These clients will also bring in more business for you via referrals.
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