5 steps to increase customer patronage by maintaining a great relationship in 2024.

How well are you leveraging customer relationships?

In our dynamic world of business, good customer relationships can serve as a powerful tool that impacts positive changes in your business's bottom line. It is general knowledge that your customer relationship system helps you to effectively manage your growing interaction with customers. According to tech.co's 2023 CRM Statistics, research by "Finances Online" reports that it can boost sales by as much as 300%. But beyond this, optimizing your customer relationship is a key strategy for extending Customer Lifetime Value (LTV) and achieving a higher Return on Investment (ROI) over the long term.

How can you leverage CRM to increase customer patronage?

Below I have elaborated five simple steps to harness the power of CRM to make your existing customers buy more for longer:

1. Know your customers inside out: You can start by properly collecting relevant information about your customers and digging deep into that data for insight. A good system for customer relations helps you understand your customers' preferences, purchase history, and engagement patterns. By Knowing your customers inside out allows you to tailor your products or services to meet their needs more effectively. Data-driven businesses are 23 times more likely to get new clients.
   

2. Segment your customer base: As you effectively collect data, you begin to identify unique characteristics that define different groups of customers. By understanding distinct customer groups, you can tailor your messages and offers to their specific needs. This precision enhances the relevance of your marketing efforts, increasing your chances of converting leads to customers and increasing the financial value of their patronage. The most common segmentations are demographics (effective for B2C businesses), psychographics (effective for B2B businesses), and behavioral segmentation (effective for e-commerce businesses). I gleaned this insight firsthand in my marketing journey across various industries.
   

3. Personalize your interactions with customers: The insights gained from your CRM allow you the advantage of personalizing your interactions and sending targeted and relevant messages, offers, and recommendations. Customers appreciate businesses that understand and cater to their individual preferences, increasing the likelihood of repeat business. Notify Visitors reports that 64% of customers expect customized interactions based on their previous engagements, and up to 52% may switch brands if communications aren't customized to them.
   

4. Reward loyal customers: With personalized interactions, you will start to notice the differences in how each customers engage and patronize your business. This may be based on frequency of purchase, volume of purchase, feedback given, user-generated content, referrals, etc. These positive exchanges with your business should be encouraged to continue. Leverage your customer relationship channels to create and manage loyalty programs, rewarding your customers for their loyalty with exclusive discounts, early access to new products, or loyalty points. Loyalty programs not only boost customer retention but also increase the chances of customers spending more over time.
   

5. Gather and act on customer feedback: Learning from your customers is the most effective way to evaluate your performance in the market. Microsoft shared that 77% of consumers favor brands that ask for and accept customer feedback. Encourage customer feedback through your CRM. Listen to what they have to say, and use that feedback to enhance your products or services. When customers see that their opinions matter, they are more likely to stay loyal and contribute to the long-term success of your business.

Exploring new and effective ways to maintain a great relationship with your customers is your not-so-secret weapon for unlocking a boost in customers patronizing your business in 2024. By knowing your customers, understanding their different needs, personalizing your interactions with each customer, staying in touch regularly, rewarding their loyalty, and leveraging their feedback to improve your service, you will not only increase customers' patronage but also achieve a higher return on your investments into this process. Cheers to your business's future success!

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