In any business, the loyalty of your customers is critical for the success of your company. Experts believe that the cost of acquiring a new customer can be between four and 10 times that of retaining a current one -- and that is a conservative estimate!
This makes your current customers your greatest asset, so you want to keep them happy at all times. Below you’ll learn how you can incentivize your students to write your reviews, refer you to friends, and more. You’ll also learn how to use our studio management software to offer deals and rewards to your current customers with ease. No matter what you do, you should always prioritize your current customers and ensure they’re happy with your studio.
Loyalty vs. Advocacy
What’s the difference between loyalty and advocacy? A loyal customer will keep coming back. They will renew contracts and buy things you’re selling regularly. An advocate, though, is more than just loyal -- they are your biggest cheerleaders. Advocates are the ones singing your praises, referring people to your studio and bringing them into your doors, sharing how passionate they are about your studio and everything you do.
How to Create Loyal Customers
Customers will keep coming back if they:
- Are happy with the service you provide
- Feel cared for and appreciated
- Like your price points and feel they are getting their money’s worth
- Are given an incentive such as a discount for signing a multi-month/year contract
- Are consistently presented with a clean and friendly environment
- Have the opportunity to give feedback and suggestions to make your studio better
- Hear from you regularly, and are able to reach you when they have issues and/or concerns
Of course, this is far from an exhaustive list. However, these are some fabulous ways to create a loyal customer. Once you have a loyal customer, what’s next? You can maintain their loyalty by continuing to deliver the elements that made them loyal in the first place, or you can try and take things to the next level by transitioning them into advocates.
Creating an Advocate
To be clear, a customer must be loyal before they can become a true advocate for your business. Therefore, you must offer everything mentioned above to solidify their loyalty first. Then, and only then, can you begin the sometimes difficult work of enticing them to be your advocate. In truth, some customers will be your advocates without additional incentives. Then again, more advocates for a company never hurt anyone, so it just makes good business sense to encourage your most loyal customers to be your best advocates.
It’s important to note that not all loyal customers will want to be advocates, and that’s okay. Advocacy is not in the nature of some people. Still, there are some things you can do that can inspire a loyal customer to transition into an advocate. Here are just a few ideas:
- Offer an incentive like a free extra class in exchange of a positive review/testimonial
- Give a cash bonus or money off their monthly bill for every new referral that signs up
- Host VIP events for the people who bring in the most referrals
- Create swag bags for those who promote you on social media
- Offer upgrades, sneak peeks or masterclasses when quotas you create are met
The possibilities for rewarding your advocates are endless. You can test and adjust until you have created the perfect incentives that work for you in your business.
Engage Regularly With All Customers
One of the worst things you can do once you have a loyal customer or advocate is ignore them, or allow them believe you have forgotten about them. If anything goes wrong, you’ll want to handle it promptly and courteously. Even when things are going right though, you still want to engage with them to let them know you’re thinking about them, and that you care about their feedback.
Although you may want to and should give extra special attention to your VIPs, you must also establish, build and nurture your relationship with your all of your customers. Who knows? Your next big cheerleader could be any one of them!
A fabulous way to do engage with all of your customers is by corresponding with them via email with studio management software. Not only will our software help you keep track of these emails and the history of your conversations, you can also track discount offers, class history, and rewards you’ve given to individual people with ease.
Want to learn more about our product and give it a test-run? You can try The Studio Director risk free, for 30 days. Using the software you can create emails that relay your incentives, and inspire customer loyalty and brand ambassadorship. Click here to unlock your studio’s full potential today!