How to Build Customer Loyalty Through Paid Ad Campaigns

How do you inspire customer loyalty?

PPC and social campaigns might not be the first things that come to mind—but maybe they should.

Most marketers focus on acquiring new customers when it comes to paid marketing.

That’s understandable—who wouldn’t want new customers?

Bringing in new customers can help your brand grow, but studies show that loyal customers are the lifeblood of your business.

They’re the ones who spend 67% more on your business than new customers. If you’re introducing a new product or service, they’re also 50% more likely to try it out than new customers.

There’s no disputing the value of retaining customers. But how exactly can you do it?

Here’s why loyalty matters and how to use your paid campaigns to not just drive sales but also build long-term relationships with loyal customers.

Why Customer Loyalty is Important

Why exactly does customer loyalty matter so much? After all, you could just focus on getting new customers, right?

Here are a few reasons why customer loyalty is critical to long-term business success.

1. Save on Marketing Expenses

Marketing costs money. Your exact budget will naturally vary based on your industry and size. However, the more competition you have, the more money you will need to spend to grab your market’s attention, create connections, and drive sales.

Loyal customers can help reduce expenses. It costs five times more to acquire a new customer than retaining an old one.

This makes sense—your current customer already knows about your brand, and at some point, they decided that your product or service was the right one for them. Cultivating relationships and building customer loyalty will help ensure they don’t only buy from you once, but continuously.

2. Improve Your Reputation

Word-of-mouth marketing is the most effective marketing strategy out there. This is because people are far more likely to trust their friends, family, and other consumers over brands.

Creating a trusted and reputable brand takes a lot of time and effort. Suppose you’ve already managed to show your existing customers that you are trustworthy. In that case, they can act as brand advocates by telling their family and friends about your amazing products or services.

3. Drive Sales

Loyal customers spend more money, and they are far more likely to tell their friends and family about you. That valuable connection will naturally lead to an increase in sales.

Focusing your efforts on customer loyalty can also help you better understand your customers, improving your sales strategy, marketing efforts, and even guiding product development.