Here are five ways to use working capital to ensure customers stay loyal to your brand and drive company growth:

 

1. Improve your company’s customer service.

Continually train your staff to offer better customer service—especially for repeat customers. Most people are willing to pay more for products or services when they also get good customer service. Consider investing in Customer Relationship Management (CRM) technology to help you track customer feedback and buying habits. The more you understand your customer, the better you can anticipate their needs, which means you can offer more targeted items and personalized care. The actionable data you gain can give you a real competitive advantage.

 

2. Improve the quality of your products and services.

Invest in research and development or inventory management technology so you can offer new products or streamline inventory. This lets you develop new products in line with customer feedback. When you shift your focus to the best-selling products, you can increase profits and better meet client demand. Overhauling your product line to remove slow-selling products often reduces costs, improves margins, and yields improved customer reliance on your business.

 

3. Create a customer reward program.

Customers like being rewarded. A loyalty program can involve giving perks based on a points, a spending program, or a fee-based VIP program offering special discounts and incentives. A rewards program is usually a low-cost way to boost customer loyalty and profits. The goal of any rewards program is a way to express thanks to your most valuable customers, who very often are you biggest spenders. This is an outstanding option to get quantifiable results and control costs. There are dozens of off the shelf solutions and various price points to meet the needs of every business.

 

4. Invest in your online presence.

A professional website will increase your company’s visibility and flexibility. Consider contracting a social media manager or hiring staff to run your social media. This lets you better engage with your customers online. Having an online presence and active social media channels is essential for today’s business. It’s essential your business is accessible wherever your customers spend their time because you can be assured your competition is already there.

 

5. Be active in your local community.

Consider sponsorships or donations to local events or organizations. Local engagement is viewed as giving back and positively increase your company profile. By showing your commitment to the community, you open a path to marketing and networking your business where you live. Don’t forget that there are also tax advantages when you support area non-profits.

 

Remember building customer loyalty is an ongoing effort. It’s so important to monitor the effectiveness of your strategies and adapt them as needed. Also, make sure to track the ROI of any customer loyalty initiatives to ensure your funding is being used effectively.  Solid customer loyalty is the secret to ensuring long term revenue growth.

 

To learn more about funding strategies and other ways to fund your small business, listen to The Funding University Podcast with Seth Block, CPA. Nationally recognized financial industry expert, Seth Block is the host, as well as Executive Vice-President of ThermoCredit. Every month, The Funding University Podcast covers important topics like SBA lending, interest rate hikes, and has guests who are experts in the lending space discussing financial topics of the day.  Tune in to monthly Funding University podcast at www.thefundinguniversity.com/podcast.

 

 

Sources:

 

Bplans Blog: 8 Ways to Earn and Build Real Customer Loyalty: https://bit.ly/3Zbpu0H

 

Business News Daily: How to Build Customer Loyalty: https://bit.ly/3EzEZpB

 

Superoffice.com: 32 Customer Experience Statistics for 2024: https://bit.ly/3Zdqwcl