Do You Have Customers Or Raving Fans? - SWI #41

Read time: 3.5 mins

Customers are great.

But raving fans?

They’re the lifeblood of a growing, profitable business.

Customers pay you.

Raving fans buy into you.

They're your biggest advocates who truly love what you do.

Today, we’re delving into the top strategies for turning customers into passionate, raving fans.

Let’s get into it:

Fifteen years ago, Kevin Kelly wrote one of the most insightful essays in this space, titled "1,000 True Fans".

Kelly defines "true fans" as people deeply committed to your work.

They buy everything you produce, attend all your events, and support you wholeheartedly.

Businesses with "true fans" grow revenue 2.5x faster than businesses with just "customers".

So, here are two essential questions your business should ask:

• How many "true fans" do you have?
• And what's your strategy for creating more of them?

Here are some examples to spark your thinking for your own business:

HOW COMPANIES ARE CREATING TRUE FANS, SO YOU CAN TOO

1) Experience & Community

Have you ever bonded with someone immediately based on a show, movie, or entertainer?

It’s such a cool moment to find a shared passion and build a connection with someone else (Lynne had this a few days ago with another Swiftie 💙).

Businesses can thrive by creating products and services that tap into these emotions:

• Lego creates nostalgia, allowing parents to share creative building experiences with their kids.
• 10KTF, a web3 brand, crafts a unique storyline every Thursday, introducing utility from brands like Gucci and Puma.
• and Taylor… well she’s so masterful at it that universities, including Stanford and NYU, are offering courses on her brand and the massive impact it has.
  
  
  

2) Loyalty Incentives

Have you ever chosen a flight, grocery store, or coffee shop based on their loyalty program?

This is the most common method of building loyalty; approximately 90% of companies have some sort of loyalty program.

Here’s the secret:

If you can reward your customers for their business, that's good.

If you can turn their data into personalised experiences, that's magic.

• Starbucks excels at personalising recommendations based on your order history in your loyalty program profile.
• Airlines can default you into your preferred seat of choice or meal option.
• Gaming companies are exploring giving rewards based on your gaming profile, helping you advance to the next level instead of relying on randomness.

By using the data of your loyal customers to provide unique, customised, and more connected experiences.

3) Convenience & Ease

We’ve been spoilt recently.

It’s now totally normal to click a button and receive a package the same day, from the comfort of your couch.

This is, like it or not, where a huge amount of loyalty comes from: convenience & ease.

• Amazon seems to do this effortlessly, but it's achieved through investment, innovation, and strategic intent.
• UBER and AirBnB leverage technology to create a seamless booking experience for travel and accommodation.

Think about businesses that you're a fan of because of their simplicity and ease of use.

How can you incorporate elements of that simplicity into your own business to create your own loyal fanbase?

Here's the key takeaway:

Raving fans are not raving fans because of price.

They love the experience you provide.

They feel rewarded for being loyal.

And they love coming back to you because it makes their lives better.

The value of these fans is off the charts:

• They are happy to pay a premium for the experience you offer.
• They will have the highest retention and recommend you to others.
• They will also be the first in line when you offer a new product or service.

The key is to focus on them.

Here's what we suggest for the action-takers:

1. Gain awareness from your current customers: One simple method is to conduct a Net Promoter Score survey to understand your customers' loyalty.
2. Set a clear strategy: Define how you plan to turn your customers into raving fans.
3. Execute and iterate: Design, implement, and adjust your strategy as you learn what works best for your business.
   
   
   

Not sure where to start for your business?

Message us here - we love to help our community and their businesses.

Time to go to work!

Thanks so much for reading!

Speak soon,

Lynne and Steve

TLDR

• Strong customer loyalty can improve your revenue by 2.5x.

• Different businesses can target different techniques (experience & community, loyalty programs, ease & convenience, etc.).

• Making a real impact requires a self-assessment, a clear strategy, implementation, and iteration.
  
  
  

Extra Resources:

1. Here's the link to the Kevin Kelly article, 1,000 True Fans .
2. Here's the link to the stat on revenue growth for businesses with loyal customers: https://hbr.org
3. Here's where the stat on loyalty programs comes from (the article includes a good list of other noteworthy stats as well): https://www.forbes.com/

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