Step 1: Get loyal customers
Step 2: Profit
That's the dream!
We all know step one is a pain in the rear, but once you get the loyalty and engagement, the money rolls in, for the most part.
It sounds like we're being facetious, but there's a lot of truth to it. The data proves that loyal and engaged customers spend more, more often. They defend the brand, bring people to it, and are more forgiving when something goes awry.
All of those are incredible and something worth striving for.
But wait, there's more.
Is it possible to increase the revenue you get from your most loyal customers?
And we're not talking about maxing out prices, and seeing just how much they're willing to pay. That's a good way to send them packing.
We're talking about upping the ante, and providing even more value than you've already given them (without really having to spend a lot more).
Yes, you can earn even more revenue from your loyalists without jeopardizing the relationship.
Three Ways to Increase Revenue from Your Most Engaged Customers
If one of your services or products works for them, there's a chance another service or product will as well. Amazon is excellent at suggesting related purchases, as is Target.
You can do it also, regardless of your business.
If you sell running shoes, follow up a purchase with an offer for running socks or even a personal training session. In the business of winter coats? Offer up some beanies and gloves.
Don't have another service? Create one, or partner with a third-party to build something out. If you're a plumber, team up with a carpet cleaner or a floor tiler, for example.
Every purchase has some sort of adjacent service or product to accompany it.
Think, why are people buying what you offer? And what else do they need to get the most out of that original purchase?
- Create a Subscription
Any business that sells something people will purchase more than once in a lifetime has a subscription opportunity. They're great for predictable revenue and long-term customer engagement, but it doesn't have to be your primary product. Create one just for your elite customers that offers special benefits, discount programs, access to product or services that aren't available to the public, and personal face time with leaders at your company.
See The Bruery's Societies for a great example of how to build paid subscriptions catering to elite customers. There's even an invitation-only tier for the elitest of the elites.
- Ask for Referrals
You can build revenue in three ways, really: by increasing the amount people pay, getting them to buy more/more frequently, or acquiring new customers.
By asking your most engaged, loyal customers for referrals, you're likely accomplishing all three. There's also a bit of the Benjamin Franklin Effect here. Just be personal and express your desire to help others in the same way you've helped the original customer. Otherwise, you risk looking desperate or greedy.
Offer them an incentive if you need to. Unless the gift is something absurdly expensive, referrals are still the lowest-cost, highest-return lead gen tactic in your arsenal.
Each of those will directly result in increased profitability - and since the customers have already been acquired, it really is almost 100% pure profit.
Here's where we drop a warning:
Loyal, engaged customers are not bottomless piles of money.
Don't let the balance between value and cost offset.
In all things, the customer must feel as if they're getting the upper hand and winning the relationship.
The good news is price is irrelevant when the value is present. You can charge whatever you want and customers will pay if the value is there. Otherwise, your reaches for extra revenue will harm your regular revenue as customers churn.
It's perfectly fine to maintain a base of loyal customers whom you ask little of, other than for them to remain loyal. But if you can add more value, and even enhance their brand experience, why not give it a shot?
None of the three tactics we mentioned are likely to push any loyal customers away. Be personal, timely, and always add value.
(image courtesy of)
Topics: Customer Engagement