Businesses typically invest a lot in acquiring new customers. They invest a lot in advertising, marketing and promotions. Yet, the reality is that it's much cheaper and more profitable to retain your current customers than to acquire new ones. But how can social media marketing London boost customer loyalty? Because it allows you to connect with your customers, and keep them interested and appreciated in the long term.
Why Loyalty is More Important than Ever
In today's world, customer loyalty is a must. It's essential to business. A recent Bain and Company report found that a 5% increase in customer retention rates can lead to a 25% to 95% increase in profits. That's a huge increase for a modest increase.
Additionally, customers who are loyal, spend more, recommend to others and write reviews. They can be thought of as "walking billboards". But, customer loyalty is not achieved overnight, and if you want to gain that loyalty, social media is an invaluable medium.
Social Media Marketing Helps You Win Customers
1. It is a Two-Way Street
Marketing is normally one-way. You talk and they listen. With social media, it's reversed. Customers can comment, like, share and message your brand - and you can respond.
For instance, a London bakery responds to all the comments on Instagram. This practice has helped them gain a local following, which has resulted in a 40% growth in repeat business in six months.
2. Building Brand Recognition is Key
Building trust is a process. Posting regularly on social media platforms such as Instagram, LinkedIn, Facebook, and TikTok, keeps your brand in the customer's mind. And, as studies indicate, familiarity breeds trust.
So brands that consistently share valuable content will be at the top of mind when a decision to re-purchase is made. Cleartwo, a top digital marketing agency in London, cites this as one of the key elements of its social media marketing techniques for a range of businesses.
3. Customer Feel Special with Personalised Interactions
Customers don't like to feel "commodified". With social media, brands can connect on a more personal level than ever before, a luxury not afforded by email or other forms of advertising.
For example, birthday wishes, customer reviews or sharing user-generated content (UGC) are all ways of making the audience feel like they're part of your brand. And that goes a long way to building brand loyalty.
4. Special Deals and Rewards Fosters Repeat Business
Social media is a great way to reach out to your existing customers with exclusive discounts, first access to new products and loyalty rewards. This is an incentive for them to return.
In fact, 64% of consumers indicated in the 2015 Sprout Social report they follow brands on social media to get exclusive deals. So it's not only a good idea to reward your social media followers, it's anticipated.
5. Building Community Fosters Community
Social media has the ability to connect people with similar interests to a common cause. Facebook Groups, LinkedIn communities and hashtags help to build a connection that transcends the product purchase.
When we feel a connection to our customers they will be less likely to abandon us. It's really hard for competitors to break through that connection.
Social Media Mistakes that can Ruin Customer Loyalty
While knowing how social media marketing can help build customer loyalty, it's worth knowing how it can also hurt customer loyalty. Here are some mistakes businesses make:
Not responding to comments and messages: No response is seen as disinterest. Always respond promptly.
Being all about sales and marketing: If you're just selling, selling, selling, people will turn away. Include informative and engaging content.
Not publishing regularly: Not posting for weeks at a time makes people lose trust and makes your posts less likely to be seen.
Being a robot: People don't follow robots, they follow people. Write as you would to a friend.
Ignoring negative feedback: Don't ignore complaints, they can actually enhance your brand's reputation.
Pro Tips To Build Loyalty By Connecting With Customers On Social Media
Here are some key tips for 2016 that work:
Take behind-the-scenes photos and videos using Stories and Reels to personalise your brand.
Have a hashtag campaign and highlight your customers' content.
Host monthly Q and A or live streams to connect with customers.
Display customer success stories and testimonials.
Create a rewards system and regularly announce it on social media.
Cleartwo, a leading Social Media Marketing London agency, suggests companies should think of social channels as conversations, rather than broadcasts. This change in attitude can go a long way to bettering the relationship with your customers.
Case Study: Social media to drive loyalty for a London retailer
A London-based medium-sized fashion retailer engaged a social media agency to improve their social media strategy. The campaign included: regular posting, engaging with the audience and offering social-only discounts. After 12 months their repeat purchase rate increased from 28% to 51%. They tripled their Instagram engagement rate. But more significantly, their customer lifetime value (CLV) rose 37% - and that affected their revenue.
Final Thoughts
If you are wondering how social media marketing improves customer loyalty, rest assured there is a scientific answer: it improves loyalty by offering a human touch, encouraging engagement, building a community and making customers feel appreciated throughout the customer journey.
If you are interested in increasing your customer retention, and building a more loyal customer base, contact Cleartwo. As a London based Social Media Marketing Agency, we help customers of all sizes to create effective strategies that help build brand loyalty.
Frequently Asked Questions (FAQs)
Q1: How can social media marketing benefit small businesses in terms of customer loyalty?
Through social media marketing, small businesses can maintain a strong presence, connect with customers and foster a more personalised experience, which is often lost in larger companies. This helps build a relationship that leads to loyalty and repeat sales.
Q2: What social media sites work best for customer loyalty?
It depends on your target audience. Facebook and Instagram are good for B2C, and LinkedIn for B2B. TikTok is also increasingly popular with the younger generation. It's all about going where your audience hangs out.
Q3: What is the right frequency to post on social media?
Quality is more important than quantity. Three to five posts a week with engaging content is better than posting every day with less relevant and valuable content. Organise your content using a content calendar.
Q4: Is social media marketing the new loyalty programme?
No, but it can be a great complement. Social media marketing can boost your loyalty programme by making it more visible, generating interest in your rewards, and by making your customers feel like part of a special club. Together they make the perfect pair.
Q5: How can Cleartwo enhance loyalty with social media?
Cleartwo is a performance-driven Social Media Marketing agency that creates customized plans to help companies connect with their customers, build engagement and boost loyalty. We do it all, from content and community management.
