Importance of Customer Relationships in Growing Your MLM Business

Who does not want their business to grow? And when it comes to Network Marketing, also known as Direct Selling or Multilevel Marketing (MLM), who will not want to expand their network of people? The answer to effectively growing a business lies with your customers and how you relate with them. Leveraging customer relationship strategies that enable to retain and increase customers can transform your business to greater heights. Therefore, you need to strive and build stable and lasting relationships with your customers.

Why Building Customer Relationships Matter

Today’s customers are smart and tech-savvy. The cut-throat competition and the online purchasing options available to buyers make them choosy in their purchasing approach. Customers today study the pros and cons of a product, read their reviews, and even compare prices before arriving at their decision to buy. Further, they constantly evaluate the relationship with their brands. A company’s few hiccups or erroneous steps can cause it to go out of favour with its customers and even get dumped forever. Therefore, any company needs to build a good rapport with its customers – the long-term success depends on the relationships a business builds with its customers over time. Therefore, the importance of customer relationships cannot be emphasised enough.

Benefits of Building Customer Relationships

Many Direct Sellers make building customer relationships look effortless! They are at so much ease when engaging in a new conversation. Over time and with experience, many Network Marketers master the law of attraction. They become thoughtful, likeable, and helpful in the eyes of their customers. Listed below are some benefits of building customer relationships.

Increases Your Profits 25% Upwards

Primarily, building customer relationships helps a business to obtain and retain customers. Remember, not having a retention strategy in place can render your customer acquisition expensive. A business is likely to sell almost fourteen times more to a current customer than a new one. So, imagine if you keep losing existing customers at a time when customer acquisition costs have increased more than 50 percent over the past few years! Always keep in mind that the probability of your existing customers being interested in purchasing a new product is 50 percent, and they are 31 percent more likely to buy when compared to your new prospect. Therefore, you need to focus on your current customer base. It can help you increase your profits by more than 25 percent.

Enhances Customer Lifetime Value (CLV)

Customer Lifetime Value (CLV) means the entire business a company or Network Marketer can expect from a customer in their business relationship. A satisfied customer is bound to have a good relationship make more purchases from your business – you do not have to chase after them. Customer satisfaction holds the key that can help to improve your CLV. As per a study by Forbes, customers are even willing to pay more for a product if the company provides an efficient service.

Helps to Develop Brand Ambassadors

When your customers become your cheerleaders, your brand gets magnified when they spread the word about your product or service in their circles. The satisfied customers who become your cheerleaders are your brand ambassadors. They help you to increase your market reach and visibility. Did you know? As per studies conducted, more than 90 percent of consumers blindly believe in opting for word-of-mouth recommendations. And more than 80 percent proactively ask for recommendations from their known acquaintances.

Conclusion: Building Customer Relationships builds reputation and grows sales

You cannot build customer relationships overnight! You need to cultivate and nurture your customers at every stage of your sales journey and touchpoints. Building relationships leads to customer loyalty. It helps to build a better reputation for your business and grow your sales. Adopting various online digital marketing strategies, a trend in today’s world can enable you to build your customer relationships. But the basics of building customers relationships are quite simple and easy. It would help if you were creative, active listeners and appreciate your customers – these are key ingredients for building a successful relationship with your customers in your Network Marketing business. The importance of customer relationships is so much that it can make or break your business.