2. Develop a “model customer” as a baseline for acquisition efforts.
Before you invest money into efforts to attract new customers, consider who your ideal client is and then target potential customers with the same attributes. The importance of this model customer goes beyond just the amount they spend on a single sale—it can also include their speed of payment, potential for repeat business, and offer of consistent sales that will better help you forecast revenue.
Use research to understand what your model customer values and use it to inform your positioning and even your product road map. Your Truist relationship manager can help you better understand the attributes that make up a group of customers who will provide you the best lifetime value.
Trust is a key factor in transforming a one-time customer into a loyal customer. Eighty-one percent of consumers agree trust plays a significant role in their choice to use certain services.1 Trust doesn’t just come from providing your service or product, however. Customers and potential customers want to feel like you care about their success.
You can build trust by getting out ahead of any mistakes you make. Apologize and then develop ways to prevent the misstep in the future. Being transparent about process faults and improvements will make even customers who have had a negative experience more likely to return.
4. Turn loyal customers into advocates through service upgrades.
A strong customer loyalty strategy includes identifying ways to offer exceptional experiences and connecting with your customers on a personal level. Even in the early stage of the business lifecycle, it’s important to strengthen bonds with existing customers as quickly as possible. Checking in with your customers post-purchase, sending a how-to video, or even asking them to write a review are genuine, effective, and relatively inexpensive methods to show them they are truly valued.
McKinsey research indicates that enhancing customer experience can increase sales revenues and profitability.2 Companies should focus on delivering seamless, personalized, and memorable experiences across all touch points. This includes investing in customer service, streamlining processes, and ensuring that every interaction adds value to the customer.
Home improvement retailer Lowe’s exemplifies how enhancing customer experience can drive success. With over 60% of online orders picked up in-store, Lowe’s in 2020 and 2021 introduced self-service lockers near the front of their locations, allowing customers to collect their items quickly without waiting in line. This additional customer convenience not only streamlined the shopping experience but also contributed to Lowe’s impressive financial performance. Full-year revenue in 2021 was $96.25 billion, an increase of more than 33% from 2019.3,4
If your goal in the early stage of your business lifecycle is to find organic growth opportunities, growing your customer base is an important step. While some strategies, such as increased marketing or hiring new employees to improve customer service, may come at a price, you can weigh those costs against their potential return and impact with the help of your Truist relationship manager.
