The Why and How of Building Customer Loyalty for Your Franchise
Posted: May 07, 2018
If you become a franchise owner, you will have many different options for where to focus your attention. As you begin looking at these different options, marketing and advertising will likely stand out as being some of the most important to do. The reason is these activities can have a direct impact on the ability of your business to grow. To learn more about succeeding with tasks like generating publicity, marketing to potential clients and knowing your service, we recommend reading our previous post on franchise marketing.
While engaging in marketing activities to attract new customers is very important, finding success with marketing can require a significant amount of resources. Whether those resources are money, time or a combination of both, a common mistake new franchise owners make is viewing marketing as a one-off activity. The problem with this approach is it’s going to create a much higher customer acquisition cost.
Why Customer Loyalty is a Great Investment
If a franchise only thinks of marketing as a way to attract new customers, they’re going to end up in the unfortunate situation of churning through a significant amount of their customers. When resources are spent on acquiring a customer who only does business with the franchise one time, the value of that customer is going to be much lower than a customer who becomes loyal to a franchise. Given that it can cost five times more to gain a new customer than to retain an existing one, it’s easy to see why loyal customers are a must for a healthy franchise business.
Tips for Building Customer Loyalty
Now that we’ve covered the why of customer loyalty, we want to share some tips on how. The first is to make every customer’s first experience truly special and memorable. When a customer feels like they’re getting the VIP treatment, they’re naturally going to want that experience again. The next tip is to communicate. People have very busy lives, which is why it’s important for you and your team to be proactive about communicating with customers. Another very useful strategy is to offer packages that reward customers for their loyalty. By offering discounts or other incentives for multiple purchases, you’ll have a clear way to encourage ongoing relationships with your customers.
This is the syndicated copy of an original article posted at http://allaboutkidslcfranchise.com/2017/07/01/the-why-and-how-of-building-customer-loyalty-for-your-franchise/
At All About Kids Childcare and Learning Centers, we will provide your child with a great learning environment, as well as a caring and well-trained staff that will work one-on-one with you to build a solid foundation for your child.