7 Steps to Increase Your Customer Base

“The most important single thing is to focus obsessively on the customer. Our goal is to be earth’s most customer-centric company.”

— Jeff Bezos, Founder and CEO of Amazon

In the ever-evolving world of business, your customer base is the lifeline of your growth and sustainability. Existing customers tend to spend more and more often than new customers. Small e-commerce businesses generate 35% of revenue from their top 5% of loyal, repeat customers. A robust user base ensures not just survival but flourishing success. But here's the catch: acquiring new users while keeping your loyal ones is a challenging feat.

It’s a delicate balance akin to juggling. This challenge requires a strategic approach and a keen understanding of your customer’s needs and desires. In this article, we will explore seven essential steps to attract new customers and retain your existing ones, ensuring your business remains healthy and vibrant. Dive in and discover the secrets to how to increase your customer base and unlock your business's true potential!

Why is it Important to Grow Your Consumer Base?

Growing a customer base is a vital part of establishing a business's success. It can lead to increased revenue, stability, and better products and services.

Increased revenue: More customers means more sales.
Stability: A larger customer base reduces the negative impact of losing a customer.
Better products and services: A larger customer base provides more insights and feedback to improve offerings.
Word-of-mouth marketing: A larger customer base can make word-of-mouth marketing more effective.
Brand recognition: As more people engage with a company, they spread the word about the business.
Brand ambassadors: More happy customers mean a greater loyal following that wants to help the business succeed.
Competitive advantage: Every customer converted is one less customer for competitors.
Customer loyalty: A growing customer base is equivalent to increasing customer loyalty and retention, which leads to more sales and revenue.

Step 1: Identify Your Target Market

Conduct Market Research:

Understand Customer Needs: Begin by gathering data about potential customers. Use surveys, interviews, and focus groups to learn what they need and prefer.
Analyze Competitors: Study competitors to see who they are targeting and how they are meeting customer needs.
Use Analytical Tools: Employ tools like Google Analytics to understand customer behavior and preferences online.

Segment Your Market:

Demographic Segmentation: Divide the market based on age, gender, income, education, and occupation. This helps in creating specific messages for each group.
Geographic Segmentation: Consider the location of your customers. Tailor your marketing strategies to different regions, cities, or even neighborhoods.
Psychographic Segmentation: Understand the lifestyle, values, and interests of your customers. This helps in crafting messages that resonate deeply with their personal beliefs.
Behavioral Segmentation: Look at customer behaviors such as buying patterns, brand loyalty, and product usage. This information helps in targeting customers based on their actions.

We offer powerful customer segmentation and targeting features to deliver personalized user experiences. You can create targeted campaigns for specific user segments based on attributes like location, user behavior, and more. With us, you can leverage user segmentation & import cohorts from analytics tools using custom webhooks.

Tailor Marketing Messages and Products:

Create Personas: Develop detailed profiles of your ideal customers based on the segments identified. This helps in personalizing your marketing efforts.
Custom Messages: Craft marketing messages that speak directly to each segment’s unique needs and preferences.
Product Adaptation: Modify your products or services to better meet the needs of different market segments.

Example:

Adidas conducts extensive market research to understand its diverse customer base. They segment their market demographically, geographically, psychographically, and behaviorally. For example, Adidas targets young, active individuals with tailored messages about fitness and performance. They also customize products like sneakers and sportswear to meet the specific needs of different segments, ensuring they remain a favorite brand worldwide.

Step 2: Provide Excellent Customer Service

Significance of Customer Experience:

Attracting Users: Exceptional customer service creates a positive first impression, drawing new users to your business. It sets you apart from competitors and encourages word-of-mouth referrals.
Retaining Users: Good customer service builds loyalty. When users feel valued and heard, they are more likely to return and make repeat purchases.
Enhancing Reputation: A reputation for excellent service strengthens your brand. Satisfied customers often leave positive reviews, boosting your business's credibility and appeal.

Also read: 10 Important Metrics to Boost User Satisfaction

Ensuring Availability:

Multiple Channels: Offer support through various channels such as phone, email, live chat, and social media. This ensures customers can reach you using their preferred method.
24/7 Support: Consider providing round-the-clock service. Automated chatbots can handle basic inquiries when live agents are unavailable.
Responsive Website: Ensure your website is user-friendly and provides easy access to support options. An FAQ section can also help address common questions quickly.

Effective Communication:

Prompt Responses: Respond to customer inquiries and complaints swiftly. Quick responses show customers that their concerns are important.
Personalized Interactions: Personalize your communication by addressing customers by name and referencing their past interactions with your company.
Clear Information: Provide clear and concise information. Avoid jargon and ensure customers understand your messages easily.
Feedback Mechanism: Implement a feedback system to gather customer opinions and improve your services continuously.

Example:

Zappos, an online shoe retailer, is renowned for its exceptional customer service. They offer 24/7 phone and live chat support, ensuring customers can always reach them. Zappos empowers its service representatives to make decisions, such as offering refunds or replacements, to solve customer issues promptly. Their personalized and responsive service has earned them a loyal customer base and a stellar reputation in the industry.

Step 3: Offer Something for Free to Attract Customer Interest

Attract New Customers:

Free Samples: Distribute free samples of your product. This allows potential customers to experience your product's quality without any risk.
Free Trials: Offer a limited-time free trial of your service. This is particularly effective for subscription-based businesses, as it showcases the value of your service.
Free Consultations: Provide free consultations or assessments. This can help build trust and demonstrate your expertise.

Build Loyalty:

Exclusive Offers: Give loyal customers exclusive freebies or early access to new products. This rewards their loyalty and encourages continued patronage.
Free Content: Provide valuable free content, such as ebooks, webinars, or guides. This positions your brand as a helpful resource and attracts potential customers.

Example:

Dropbox grew rapidly by offering free storage space to users who signed up and additional free space for referrals. This strategy allowed users to experience the product's benefits firsthand and encouraged them to invite others, significantly expanding Dropbox's user base. Combining a valuable free offer and a referral bonus created a powerful incentive for growth.

***Dropbox's free storage offer to attract new users***

Step 4: Leverage Online Marketing and Social Media

Utilize Digital Platforms:

Broader Reach: Digital platforms enable you to reach a vast audience beyond geographic limitations. Use websites, email marketing, and online ads to attract potential customers.
Engagement: Interact with your audience through comments, messages, and live chats. This fosters a community around your brand and builds customer loyalty.
Analytics: Use tools like Google Analytics to track your marketing efforts' effectiveness and make data-driven decisions.

Content Marketing:

Blogging: Write informative and engaging blog posts related to your industry. This helps establish your brand as an authority and attracts organic traffic.
Videos: Create engaging videos demonstrating your products, sharing customer testimonials, or providing useful tips. Videos are highly shareable and can boost brand visibility.
Email Newsletters: Send regular newsletters with valuable content, promotions, and updates. This keeps your audience informed and engaged.

Our ‘Stories and Videos’ feature allows you to create immersive, easy-to-digest content to communicate relevant information within your product and keep users engaged.

Social Media Strategies:

Regular Posting: Maintain a consistent posting schedule on platforms like Facebook, Instagram, Twitter, and LinkedIn. This keeps your audience engaged and your brand top-of-mind.
Interactive Content: Use polls, quizzes, and live videos to engage with your audience. This encourages interaction and strengthens your online community.
Influencer Partnerships: Collaborate with influencers in your niche. Their endorsement can significantly boost your brand’s credibility and reach.

Example:

Glossier, a beauty brand, effectively uses social media to build its brand. They engage with their audience through regular posts, user-generated content, and influencer partnerships. By sharing real customer stories and creating a sense of community, Glossier has built strong brand awareness and loyalty.

***Glossier Instagram customer engagement***

Step 5: Develop a Customer Loyalty Program

Benefits of Rewarding Loyal Customers:

Repeat Business: Rewarding loyal customers encourages them to return, increasing their lifetime value.
Customer Retention: Loyalty programs help retain customers by making them feel valued and appreciated.
Word-of-Mouth Referrals: Satisfied customers are more likely to recommend your business to friends and family.
Competitive Edge: A well-structured loyalty program can set you apart from competitors and attract new customers.

Also read: 12 Practical Ways to Increase User Engagement [With Expert Quotes]

Examples of Rewards Programs:

Points System: Customers earn points for every purchase, which they can redeem for discounts, free products, or other perks. This incentivizes frequent shopping.
Tiered Rewards: Create different reward levels based on spending. The more customers spend, the higher their tier and the better the rewards. This encourages increased spending.
Exclusive Offers: Provide members with exclusive deals, early access to new products, or special events. This makes them feel privileged and valued.
Cashback Programs: Offer a percentage of their purchase amount back as cash or store credit. This is a direct incentive for repeat purchases.
Referral Bonuses: Reward customers for referring new customers with discounts or free products. This not only retains existing customers but also attracts new ones.

Here at Nudge, we offer a powerful loyalty program feature that helps drive customer engagement and retention. You can create customized reward programs, including points, tiers, and referrals, and target specific user segments to maximize participation and redemption.

Example:

Dunkin Donuts Rewards program allows customers to earn stars for every purchase, which can be redeemed for free drinks and food. Members also get early access to new products and special promotions. This program has successfully increased customer loyalty and repeat business by making customers feel appreciated and incentivized to return.

Step 6: Encourage Referrals and Collect Feedback

Implement a Referral Program:

Leverage Satisfied Customers: Encourage happy customers to refer friends and family. This expands your customer base through trusted recommendations.
Referral Incentives: Offer rewards such as discounts, free products, or cashback to both the referrer and the new customer. This motivates customers to participate.
Easy Referral Process: Simplify the referral process with user-friendly links or codes that customers can share easily via social media, email, or text.

Collect Customer Feedback:

Surveys and Questionnaires: Use surveys to gather insights on customer satisfaction and preferences. Tools like SurveyMonkey or Google Forms can help.
Direct Feedback: Encourage customers to provide feedback directly through your website, social media, or customer service channels.
Review Platforms: Monitor reviews on platforms like Yelp, Google, and Trustpilot. Respond to feedback to show that you value customer opinions.
Improve Products/Services: Use the feedback to identify areas for improvement. Implement changes based on customer suggestions to enhance their experience.
Boost Satisfaction: Addressing customer feedback shows that you listen and care, which increases satisfaction and loyalty.

We offer powerful feedback collection capabilities to gather actionable insights from users. You can create customized surveys and polls to understand user behavior, preferences, and pain points. The feedback data can then be used to optimize the product experience and drive continuous improvements.

Also read: Customer Feedback Methods: Why is it important?

Example:

Airbnb’s referral program offers additional storage space to both referrers and referees. This simple, attractive incentive helped the brand rapidly expand its user base. Additionally, Airbnb regularly collects user feedback to improve its service, ensuring it meets customer needs and expectations.

Step 7: Expand Into New Markets

Explore Growth Opportunities:

New Segments: Identify and target untapped customer segments within your existing market. This could include different age groups, income levels, or lifestyle preferences.
Geographic Expansion: Look into expanding your business into new regions, cities, or countries. Assess market potential and demand in these areas.
Market Research: Conduct thorough market research to understand the needs, preferences, and behaviors of potential customers in the new market. This minimizes risks and maximizes success.

Adapt Offerings:

Tailored Products/Services: Customize your products or services to meet the unique needs and preferences of different markets. This can involve modifying features, sizes, or packaging.
Localized Marketing: Develop marketing strategies that resonate with the local culture, language, and values. This can include localized advertising, promotions, and partnerships.
Regulatory Compliance: Ensure your business complies with local regulations and standards. This includes understanding legal requirements, import/export rules, and industry-specific regulations.
Logistics and Distribution: Establish efficient logistics and distribution networks to ensure your products reach new markets smoothly. This might involve partnering with local distributors or setting up new supply chains.

Example:

Coca-Cola has successfully expanded into various global markets by adapting its products and marketing strategies. They offer different flavors and packaging sizes to cater to local tastes and preferences. Their localized marketing campaigns reflect regional cultures and values, ensuring the brand resonates with diverse customer bases worldwide. This strategic expansion has helped Coca-Cola maintain its position as a global beverage leader.

Conclusion

“The most important adage and the only adage is, the customer comes first, whatever the business, the customer comes first.”

— Kerry Stokes, Chairman of the Seven Network

To increase your customer base, you need continuous effort because customers are the key to long-term business success. You create a robust strategy by identifying your target market, providing excellent customer service, offering free incentives, leveraging online marketing, developing loyalty programs, encouraging referrals, and expanding into new markets.

This multifaceted approach ensures a steady pipeline of new and returning customers, helping your business thrive in a competitive landscape. Stay committed to these steps, and watch your customer base grow, ensuring your business remains healthy and prosperous.

Book a demo with us today to get access to high-tech and advanced features that will help you retain and increase your customer base for your business.