Loyalty is Earned through Effective Relationship Marketing
Most network marketers, are familiar with the term relationship marketing (or are becoming to be). This type of marketing is a personal or emotional connection to a brand. This type of connection is centred on trust and, trust in you and trust in a product or service. And, as we know, where there is trust loyalty is not too far behind.
This, is what breeds long term retention and a thriving business.
Relationships Foster Loyalty
We talk a lot about residual income when it comes to network marketing. After all, it is what we are all striving for in some way, right? Well, then knowing this wouldn’t you want to do everything you could to ensure customer retention?
Of course you would!
Then, let me ask you a tough question …
Why is this commitment to the customer lost along the way?
Let’s consider some of these statistics for a moment (I don’t love stats but I do my best to speak to my green personalities out there!). In the general world of business, it costs business owners 6 to 7 times more to bring on a new customer than it does to retain an existing one. This includes paid advertising which we appreciate network marketers aren’t deep into (and unless you’re earning $10K+ a month, I don’t typically recommend it).
But, this also includes things like vendor events, home parties, and let’s be honest those coffee shop meetings add up! It can also include discounts or giveaways you run to draw in new customers.
However, stats also show that of those existing customers (when treated right), 86% of them will spend more money with you.
Why? Because they love the product, but a lot of this has to do with YOU.
Think about the last few customers who joined and/or purchased from your business. What happened after the purchased a product or service from you? The following will help guide you through a quick and easy strategy to help promote retention in your business.
3 Ways to Promote Customer Loyalty
Here’s the deal, the majority of network marketers join their prospective businesses because they fell in love with the product. Chances are, you may have been a customer before you ever became a distributor. Now, I understand this isn’t always true … but a safe assumption is that it is the majority
And, we also know that customers often make the best distributors, right?
What would be more valuable to you?
- 10 new customers every month with a purchase longevity of 90 days or,
- 2 new customers every month with a purchase longevity of 5 years
I’m going to assume that you chose number two. In my own humble opinion, that would be the right choice. And yet, we constantly see distributors chasing those new faces while forgetting the existing ones. Yes, new customers are important — of course they are.
Customers are imperative to long term success.
And yet, this is often still so lost along the way.
Think about how you might feel if someone spent days, weeks or even months following up with you, checking in on you .. and then you decide to buy and *poof* you never hear from them again. Except maybe at the end of the month (which by the way is a horrible habit). We appreciate month end burning the midnight oil, but this is where consistent follow up through the month should happen.
So, while you go through these next 3 ways to promote customer loyalty, put yourself in the customer shoes.
#1 Word of Mouth
We all know how powerful word of mouth marketing is and, customers are the greatest at this. Why? Because they have no attachment to anyone making or purchase or not. They are simply sharing something they love. By the way, this goes for any industry.
Sam purchases a weight loss shake from you. He’s shy and maybe even embarrassed so he doesn’t tell anyone at first. That is, until he starts to see the pounds dropping, feeling better, sleeping well, etc. P
eople start to notice and say things like ‘hey Sam you’re looking good!‘. What do you think that Sam is going to do now?
Tell others about the shake!
… and so on and so on.
And, thanks to the power of social media — this type of news travels fast. So if you treat Sam right, he would not only be sharing his love for the product but endorsing you for introducing him to it, over and over again.
Let Sam sing your praises! This is where, you need to love on your customers MORE.
Customer Loyalty Tip: Say thank you and mean it. Letting customers know you appreciate their business is more than a — thanks for your order email. Authentic appreciation means making a follow up call or message, and being available to answer questions even after the sale is completed.
#2 Honesty can be Profitable
One thing I always work with my clients on, and what Dani, my wife, and I practice in our business is transparency. Remember, social media gives everyone a voice — so you want to make sure that your customers are using it for good.
You want to encourage testimonials and always ask permission before sharing one (this includes a name).
Think about this, you give Sam a follow up call and he can’t stop talking about how great the product is. Do not shy away from asking him for a testimonial or review. In fact, ask him to post about it even. He opened the door — don’t let these opportunities pass you by.
People want to feel heard and cared about.
We’ve all heard that saying ‘people won’t always remember what you said, but they always remember how you made them feel’. This area of improving loyalty should also include if a customer has a concern or a complaint. Ensure that they are being heard and you will work with them to make sure it is resolved.
This may mean a phone call to customer service on their behalf and/or some type of gesture that will help them feel appreciated and HEARD.
Customer Loyalty Tip: Create a culture of transparency, where if you make a mistake it isn’t the end of the world. Be authentic in your dealings with customers. Their loyalty to you, will reward you over and over again.
#3 Relationships go the Extra Mile
Loyalty is built not just through your products or service, but through your relationships. Little things make all the difference in the world, like remembering what flavor of shake Sam likes, or like remembering a detail from a previous conversation.
Genuine relationships make a critical difference when it comes to customers leaving or staying.
As I mentioned above, they become your best advertisers telling everyone they know.
And, they are more inclined to be open to the business side of things too.
Tip: Be proactive. As network marketers, follow up on previous conversations with prospects. Keeping customer relationships strong also keeps sales strong.
Some Final Thoughts on Customer Loyalty
Many network marketers completely ignore the retail side simply because they’ve been misguided to go after the ‘big bonus’ money. They have been taught that the people who simply buy your products from retail are just a residual byproduct of going after downline distributors.
In my opinion? You should be focused on both. You have to meet people where they’re at. Think about it this way — Sam wanted to lose weight and he knew you had something that may be able to help him. Instead, you ‘pitch’ him on the business. Sam stops returning your calls/messages and next thing you know, Sam is drinking the same weight loss shake from a distributor which whom he felt heard by.
Sam, goes on to reach his goal weight and because of his product story and decides to build a business with it.
How would you feel, if Sam ended up to be the top earner in said company? Wished you would have heard him, right?
I thought so.
Loyalty from your customers will take you great places in this industry. Please, do not lose sight of that.
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