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title: Increase Your Profit by 25% With 4 Easy Steps to Customer Loyalty
description: How a good marketing strategy can build your customer loyalty program and increase your bottom line.
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[Blog](https://mktgessentials.com/blog) > [Strategy](https://mktgessentials.com/blog/topic/strategy) > Increase Your Profit by 25% With 4 Easy Steps to Customer Loyalty

# Increase Your Profit by 25% With 4 Easy Steps to Customer Loyalty

Posted by [Patty Cisco](https://mktgessentials.com/blog/author/patty-cisco)  on July 9, 2014

*“As business owner, I’ve spent so much time and money acquiring new customers that I really haven’t focused on existing customers. Could I be generating more revenue if I did?”*

Absolutely! In fact it would even cost you less if you did. It actually costs ten times more to acquire a new customer than to focus on the one you already have. And further, a repeat customer spends sixty-seven percent (67%) more than a new one.

A joint [study by BIA/Kelsey and Manta](http://www.biakelsey.com/small-business-owners-shift-investment-from-customer-acquisition-to-customer-engagement-new-report-by-manta-and-biakelsey/) found that, for the first time, small businesses truly grasp the impact their customer base has on their long term business viability. The study surveyed nearly 1,000 small business owners (SBOs) and found they now spend more than half of their time and budget focused on existing customers. But how do you create customer loyalty?

## Create a Customer Loyalty Program in 4 Easy Steps

1. **Database.** Start with a clean, accurate and complete list of existing and past customers. Evaluate their current and past purchase history. If customers have left, identify why. Data tells a story and drives decision. Start uncovering what your data tells you.
2. **Ask.**  Put processes in place to start identifying information about your customers, such as a post purchase email. Encourage them to post reviews. What do they like about your product or service? Why do they continue to purchase from you? What other types of products or service would they find beneficial? What would make their purchasing or service experience with you better? Customer centric data will help you in developing new products, services and processes instead of just following your gut.
3. **Tactics.** Identify which channels are optimal to reach your existing customers. Research by BIA/Kelsey reveals the channels where small business owners will increase time spent – notably email (52.1%) and Facebook (39.4%) –are those best suited to engaging existing customers.
4. **Nurture.**  Creating opportunities to continually [nurture your customers](https://mktgessentials.com/4-little-changes-that-will-make-a-big-difference-with-your-prospecting/) is critical to your customer retention. Develop loyalty programs that focus on enhancing the customer experience. Make it easy to do business with you. Reward them for their loyalty with special discounts. Provide incentives for referring friends and family. Encourage them to become a member both on-line and off-line. Email and social media platforms are key strategies to stay connected to your members, as well as mobile apps. Don’t neglect maintaining a database by using a CRM (Customer Relationship Management) system or other industry/service specific management tool.

In a [study by Harvard Business School](http://hbswk.hbs.edu/archive/1590.html), it was found that increasing customer retention by even 5% can increase profits between 25-95%. Looks like focusing on customer retention is worth the attention! If you are [seeking avenues to grow your bottom line profit](https://mktgessentials.com/3-ways-to-win-big-with-your-social-media-strategy/), then you can’t neglect using internet marketing strategies in this highly connected real time world.

***What customer loyalty strategies have you implemented that resulted in positive outcomes?***

***Call us at 419.629.0080 for a free SNAP Shot to help grow your bottom line.***

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