Talk to many business people about how they approach customer service and the majority of them will say that they are aiming to have ‘satisfied’ customers. No! What we all should be seeking is to have loyal customers.
Research has shown that 65% of customers say they are loyal. You may be happy with this but you shouldn’t! Satisfied customers are in a state of nothing – they are neither issatisfied or happy; they are in between. They will tolerate you while you are of use to them but if a better deal comes along, they’re off.
On the other hand, loyal customers are your friends. They will be with you through thick and thin; they will be the first to try out you new product; they willing give you honest feedback; they will regularly refer business to you. This is what you want! But how can you turn a satisfied customer into a loyal one?
Let Them Decide How to Do Business With You
Today customers are a lot more sophisticated in how they want to do business. If your product or service lends itself to be offered via a number of different means, then give your customer the option.
Can you deliver face-to-face? What about telephone services? Could you make use of SMS texts for quick notes and reminders? Do you have a web site through which customers can contact you or even make orders on-line? If you provide a variety of delivery channels which are available to suit the customer’s needs then they are more likely to stay with you.
Build a Relationship
Loyalty can only be achieved if you have a true relationship with your customer. Aim to build rapport. Understand who are dealing with you and understand what they are looking for. Keep in regular contact with them; you don’t necessarily have to be selling something. Always use their names, especially their first name if you can.
All of this will help in building a long term relationship. Once you have this, they are less likely to walk away.
Generate Staff Loyalty
How can you cultivate a loyal customer if your staff are not loyal to the business? You must have staff who care for the job and will do anything to protect and move the business forward. Customers will be more loyal if they see familiar faces. A business with a high staff turnover will find it difficult to build a relationship with their customers.
Treat your staff well. Reward their successes and recognise their achievements. Hold regular training sessions so they feel they are learning and developing. An established training programme will also make sure that their product knowledge is up to date.
Seek Out Complaints
This sound strange but the average customer has to be encouraged to complain! Many will keep quiet about poor service but if they can find someone else to do their business with, they will. Set up a clear complaints procedure so customers can complain if they wish. Provide staff with the tools to effectively deal with customer problems. Follow up all complaints to ensure that they have been resolved.
Take an Interest
Show your customers that you are interested in their views. Run regular surveys to find out what they think of your service, to find out what you can do differently. You can either carry out a survey over the telephone, or go as far as doing a mailing to all your customers.
Taking the trouble to contact your customers will reinforce the message that you want their custom. But don’t forget – take action on what you find out!
Be a ‘Can Do’ Business
Customers like nothing better than a business which delivers on even the most difficult of requests. ‘Can Do’ businesses will always have loyal customers. Train your staff to never use words like, “Sorry but …”, “It’s not my fault”, “Its company policy”.
Be a business where solutions are always looked for and problems seen as challenges.
Look After The ‘Golden’ Customers
The old 80/20 is likely to apply to your business – 80% of your sales or profits are likely to come from just 20% of your customers. Work out who your top 20% are and love them to death! Why not concentrate on turning the remaining 80% into loyal customers? Well, the 20% have already shown that they trust and respect you. A little more effort with these customers will reap more business than concentrating on the ‘maybe’s’. By all means, run a programme to convert the ‘maybe’s’ but put more effort into the converted.
So, there you have it. Some ideas and tips on how to build and keep loyal customers. Take a critical look at your business and put a loyalty building programme in place, which will boost sales and profits.
Customer Loyalty – The Key to Business Success
Creating Customer Loyalty For Your Business
Creating Customer Loyalty for Your Business
Strategize and Plan For Loyalty!
These four factors will greatly affect your ability to build a loyal customer base:
1. Products that are highly differentiated from those of the competition.
2. Higher-end products where price is not the primary buying factor.
3. Products with a high service component.
4. Multiple products for the same customer.
1. Market To Your Own Customers
Giving a lot of thought to your marketing programs aimed at current customers is one aspect of building customer loyalty.
When you buy a new car, many dealers will within minutes try to sell you an extended warranty, an alarm system, and maybe rust proofing. It's often a very easy sale and costs the dealer almost nothing to make. Are there additional products or services you can sell your customers? Three years ago my house was painted, and it's now due for another coat. Why hasn't the painter called or at least sent a card? It would be a lot less expensive than getting new customers through his newspaper ad, and since I was happy with his work I won't get four competing bids this time. Keep all the information you can on your customers and don't hesitate to ask for the next sale.
2. Use Complaints To Build Business!
When customers aren't happy with your business they usually won't complain to you - instead, they'll probably complain to just about everyone else they know - and take their business to your competition next time. That's why an increasing number of businesses are making follow-up calls or mailing satisfaction questionnaires after the sale is made. They find that if they promptly follow up and resolve a customer's complaint, the customer might be even more likely to do business than the average customer who didn't have a complaint.
3. Reach Out To Your Customers!
Contact with current customers is a good way to build their loyalty.
The more the customer sees someone from your firm, the more likely you'll get the next order. Send Holiday cards, see them at trade shows, stop by to make sure everything's okay. Send a simple email newsletter to your customers-tell them about the great things that are happening at your firm and include some useful information for them. Send them copies of any media clippings about your firm. Invite them to free seminars or exclusive events. The more they know about you, the more they see you as someone out to help them, the more they know about your accomplishments-the more loyal a customer they will be.
Recommended Tool: Loyal Email
The Loyal Email solution enables businesses of any size to communicate directly with customers via permission-based email campaigns which helps companies save time and money while increasing sales and customer loyalty.
This solution is geared towards companies whom want to harness the effectiveness and cost efficiencies of email communications but do not want the hassles of managing their own program in-house. Loyal Email is a 100% managed service which doesn't require any additional investment in hardware, software or personnel. They take care of everything so you don’t have to. Get your own custom designed email marketing and customer loyalty program at http://www.loyalemail.com
Wishing you great business success,
Chris Swemba
Kinetica
4 Reasons Why Customer Loyalty Is Vital To Your Business
Have you ever wondered why some businesses may set up shop in areas that might not be very conducive to business and do quite well, while others are placed at major thoroughfares where walk by and drive by traffic are all but guaranteed, yet within six months they fold and the place goes up for lease or sale? The truth of the matter is that success is not always determined by your location – although it does play a vital role – but more often than not it is dictated by customer loyalty.
Here are four reasons customer loyalty is vital to your business:
1. First and foremost is the fact that a loyal customer is a repeat customer. This person will know about your business practices, about what to expect from your goods or service, the advantages and the disadvantages, and she or he will do business with you in such a way that it is a mutually satisfying transaction.
2. As you establish a relationship with your customer, you are also establishing a relationship with the customer’s family. Thus, it is not uncommon to have the wife bring in the dry cleaning for the family and turns her mother, mother in law, aunt, and best girlfriend on to your business. As the husband is sent one day to pick up the dry cleaning he becomes familiar with the business, and he will tell his brother, business associates, and others who are looking for a drycleaner. Thus, you are suddenly becoming a commodity which is being shared with others.
3. While family referrals are great, business referrals are even better. If you are a dry cleaner, you will want the dress maker down the street to recommend your services to its customers. Similarly, if there is bridal shop with which you may have some professional ties, then these business referrals are simply priceless! Customer loyalties – when you have other business owners or clerks shopping at your store or utilizing your service – are quite often the gateway to a great number of new walk in customers.
4. Yet the fourth and perhaps most important reasons why customer loyalty is vital to your business rests in the fact that many major purchases are not made during the initial contact. For example, if you are a furniture store, you might have someone come in looking for a computer desk. While these may be expensive – depending on the materials – by and large these items are small fish. Yet if the consumer is satisfied with the product, the delivery, the setup and also the price, the odds are good that she or he will be back when it is time to furnish the nursery, buy that new wall unit, or acquire that bedroom set that was saved up for!
So, customer loyalty is one of the many foundation stones you have to put in place if you are going to build a successful business.