According to statistics from the Home Improvement Research Institute (HIRI), home improvement product sales are expected to eclipse $293 billion this year, which would be an increase of more than five percent from the year before. This means that more homeowners are looking to upgrade, so lots of couples and homeowners on their own are heading to retailers to check out their options and buy materials. While there are lots of factors that they might look for before making a purchase, quality customer care could make a huge difference.
One of the realities of shopping for appliances, lumber, and all kinds of other renovation materials is that lots of distributors will have quite similar products, and costs are not likely to vary too much. Sometimes, if consumers have an appreciation for customer service, then businesses who work to build customer loyalty might be able to steal shoppers away from their competitors.
If consumers place an emphasis on the importance of customer care, that means every company should try to do so as well. In fact, there are several different benefits to being able to build customer loyalty with great customer service. One of the most important is that it is easier to up-sell or cross-sell loyal shoppers. Marketing Metrics found that, while there is a 60 to 70% chance of selling something to a loyal customer, that number plummets to when it comes to new prospects. So making customers feel special and building a loyal customer base is a good idea for every business.
Acquiring new customers is an important process for any business looking to grow, and some effort must be made to do so. However, it can be six or seven times less expensive to service current customers than earning new ones. So putting in some effort to build customer loyalty is a smart strategy for businesses who want to earn the most and spend the least.
Perhaps the greatest reason to focus on building customer loyalty is that doing so can be more powerful than any advertising or marketing campaign. Loyal customers are more likely to share their positive experiences with friends, family, and even other random shoppers, and word of mouth is a powerful tool when it comes to bringing in new business. Loyal customers enhance the brand and help make potential buyers feel more comfortable making their first purchase.
Building a more loyal customer base is not an exact science, and every consumer is different. Many will care only about saving money but some will put an emphasis on getting a great customer service experience. Earning the trust and loyalty of shoppers and home renovaters can help any retailer grow. Good references here.
