Leveraging Customer Loyalty

In the motorsport industry, customer loyalty is one of the keys to great success. We all know that it is much easier to sell to your existing customers than new ones, as bringing new clients will cost you 6 to 7 times more than keeping an existing customer. However, many companies direct their efforts on bringing new customers. Generally, you should keep in mind that retaining your existing customers is equally important.

There are many challenges in the motorsport industry, and you should focus on building a relationship with both your new and existing customers. Think about your website and your social media presence in order to create your brand’s profile on the Internet. Always try to improve your customer service levels, as there is no other way to attract new consumers and keep existing ones in your business.

Who is a loyal customer?

All of the things mentioned above makes for interesting reading, but what makes a person transform into a loyal customer? The answer couldn’t be more simple; it’s all about solid relationships. Although a customer may be fond of motorsports, this doesn’t necessarily mean he or she will come and use your services. If you’re in the motorsport industry, you still have to work hard to achieve a great relationship with your customers in order to win the sale.

After a great customer service, there is a perfect opportunity to make sure they will be back in the future. Offering a great service every time someone interacts with your business and team members means you give your customers a reason not to look elsewhere when it comes to their passion. What you should remember is that it’s important to keep a good relationship with a customer long after the first sale.

How to take control of customer loyalty?

Improving customer loyalty may be a challenge, but here are some ways you can incorporate into your business and improve the customer experience:

1. Rewards

When it comes to basic ways you can nurture your customer retention, consider incorporating a reward program. It doesn’t need to be some expensive and loud promotion. Instead, go for low-cost loyalty incentives, which are more evaluated by the customers. Another option is to offer a VIP card with a discounted rate of your customer's services. It won’t cost you much but will bring maximum value for your customers. Some companies are creating mobile apps to provide an easy and fast way to connect people with their business. Plus, an app makes it a lot easier for a person to manage loyalty points and rewards with no need to constantly keep a card in a wallet. Keep in mind that customers in loyalty programs are more interested in your services and may even spend twice as much money than a non-member people.

2. Stay in touch

Great customer service is important, but customer loyalty also needs an effective communication strategy. First of all, think about your aftersales care and focus on getting in touch in order to make sure your customers were happy with your services. That’s why it’s important to exist in social media channels. Your customers will be more than happy to follow your profile, especially if you’re offering discounts or additional services for your followers.

3. Know your customer

A range of motorsport businesses is actively engaging with their customers through targeted marketing campaigns. These companies can send communications based on their customer's needs, wants or even specific events. One of the nice ways to let your customer know you care is sending a special offer on your customers’ birthday. Another option is to incorporate some free holiday checks or summer discounts. The more you get to know your customers, the more loyal they will become.

Can loyal customers be more profitable?

Attracting new customers is a great thing, but don’t get carried away. Contrary to what some may believe, having more customers doesn’t always mean you’re going to have more profit. Holding on to the group of existing customers is one of the smartest and strategic business decisions you can make, and it gives you long-term profitability. A loyal customer will come to you in the future, but also recommend your services to family and friends. Want more reasons why it pays to strengthen your relationship with the customers?

1. It doesn’t cost much to market them

It’s not a secret, but keeping an existing customer is much cheaper than bringing new ones to any business. Get to know your customers and market them accordingly. Keep in mind that your existing customers will always be more engaged than any new leader, of course, if you’re providing great services. These people already know your business, which is why they need to get less marketing communications. Consider creating a communication program to send emails to your loyal customers, and give them access to compelling offers. Also, make sure you give your customers a way to contact you, as the most loyal ones will want to contact you themselves, too. Also, a loyal customer doesn't need that much persuasion when it comes to some extra services you provide.

2. Loyal customer spends more

You will hardly find a bigger spender than a long-term customer because if he’s satisfied and experienced with the services you provide, he will be less sensitive when it comes to your prices. According to studies, top customers spend 5 times more per order, than a first-time buyer. Once you have a great and trusting relationship with your customers, you will see it yourself that they are more willing to spend money and say “yes” than new ones.

3. Loyal customer becomes your advocate

Before a prospective customer chooses your services, he or she will do a lot of research, including online reviews and social media recommendations. This is why you need loyal customers. People like to discuss when they have a negative experience with a company, but many share their positive thoughts about some businesses, too. If you create a good relationship with your customers, they will return a favor and spread the good word about your business.

When it comes to customer loyalty, keep in mind that a nice relationship is key not only in motorsports but in any business. Consider boosting your online profiles and attract your long-term customers by creating discounts and special offers for them. They will be more likely to recommend your services to their friends and family. Remember that a loyal customer needs less marketing efforts and brings others into your business.

Contact 10twelve to learn how you can leverage customer loyalty for your motorsport business.