News | Tactics
How to create customer loyalty By Davina Richards
Customer loyalty works in the same way as befriending a cat – it takes time and patience, but once you earn its loyalty, you have them for life. The same goes for your customers. Some businesses find that they have many one-off customers but very few loyal ones, which is not the ideal way to keep a company running successfully. A business with no repeat customers is, in essence, a ticket to eventual insolvency. Building up a circle of loyalty and trust with customers will ensure they return time and time again. And although many owners focus solely on attracting new customers, it’s more cost efficient to maintain a relationship with existing ones. Forming a relationship with customers is something which small businesses have a better advantage of doing compared to larger companies and, in doing so, a better chance of securing loyalty which lasts. Small businesses… • Get to know customers on a more personal level – you know them by name, what their preferences are, what their needs are and even what they don’t like • Usually work on a marketing budget, so when it comes to attracting customers, business owners tend to think more creatively
“
Forming a relationship with customers is something which small businesses have a better advantage of doing compared to larger companies and, in doing so, have a better chance of securing loyalty which lasts.
”
• Form good relationships with customers and the community. Reaching locals is easy and can promote business by word of mouth while you get to know your audience
offers and loyalty discounts which new customers can’t get. It makes them feel like a person and not just a sale and they’ll also appreciate the effort you’ve made.
• Have more control over the business in terms of making executive decisions and implementing changes faster.
Attracting new customers is always great, but consider how existing customers can do the marketing for you. Acknowledge them on a regular basis and they'll put the word out.
Tips and tricks A great way of retaining customer loyalty is by staying in touch. In this age all you need is a Facebook or Twitter account to keep customers well informed and regularly updated. Keep your product and service offer fresh and every time you introduce something new, announce it to your customers. Don’t just exceed expectations. Customers love to be acknowledged. Follow up with an email or newsletter to show you value them as an individual customer. Create special
Through word of mouth, recommendations, or even showing to their friends the customer loyalty gift or token discount you sent them. Pay attention to your existing customers – if they’re satisfied, they’ll tell others. Individual customers have individual needs, so how do you know if your product or service will fulfill their needs if customers don’t know what you can do for them? If you want customers to come back to you, give them a good reason to. Show them who
you are, what you do and what you offer. If you don’t inform them of what your business is about, they may never know and never come back. Using social media to stay in contact with customers is a great tool. But it’s just as important to listen to what customers say online. Show that you care by finding out what they’re talking about and how this could help you to improve your product or service. If you’re too busy to check in, find someone who will. Search for problems. Respond as quickly as you can and have a friendly and willing attitude to change any negative view a customer may have. Show that customers come first by resolving issues. Factor in the relationships you build with employees. These are the people who stand on the front line of your business. They’re the first people you see when you walk through the door of your business and they’re the people who answer your phones every day. By having a good working relationship with them will guarantee friendly and helpful staff is put in front of customers. Under promise and over deliver. Delight and dazzle customers by working above and beyond to keep them happy. Getting something more than expected will be remembered above all else. You can never do enough. And finally – smile.
“
Famous quotes “Sometimes, I think my most important job as a CEO is to listen for bad news. If you don’t act on it, your people will eventually stop bringing bad news to your attention and that is the beginning of the end.” – Bill Gates “When somebody challenges you, fight back. Be brutal, be tough.” – Donald Trump “When people are placed in positions slightly above what they expect, they are apt to excel.” – Richard Branson “It’s customers that made Dell great in the first place, and if we’re smart enough and quick enough to listen to customer needs, we’ll succeed.” – Michael Dell (Dell) “If you work just for money, you’ll never make it, but if you love what you’re doing and you always put the customer first, success will be yours.”
Books to read
– Ray Kroc (McDonald’s)
• Monitor Small Business Customer Loyalty by Barbara Findlay Schenck
“Your most unhappy customers are your greatest source of learning.”
• Delivering Happiness: A Path to Profits, Passion, and Purpose by Tony Hsieh
– Bill Gates
• Bold: How to Be Brave in Business and Win by Shaun Smith and Andy Milligan
“Customers don’t expect you to be perfect. They do expect you to fix things when they go wrong.”
• Building Customer Loyalty: The 21 Essential Elements by JoAnna Brandi
– Donald Porter (British Airways)
• Customer Loyalty: How to Earn It, How to Keep It by Jill Griffin
www.canterburytoday.co.nz
”
September/October 2013 | 31