Tip: Creating Customer Loyalty

Loyalty is not about short-term promotional strategies or appreciation programs that are launched today and forgotten about tomorrow. It needs to be about ongoing customer interactions that consistently exceed the needs and expectations of your customers, even if they are online. Build loyalty through engaging your customers and winning their commitment. This can be measured in customer satisfaction, retention, referrals, sales and profits.

Loyalty is a give and take relationship. A customer spends money, provides their personal data and hopefully becomes a potential advocate for your store. You give your customers recognition, use their information to better meet their needs and may even reward them for their loyalty. Building loyalty is not just about points and rewards though. It is about identifying and nurturing the yield a long-term, reciprocal, value-added relationship. It requires putting your customer at the center of your business process.

Since it costs 5 times as much to bring in a new customer than to keep an existing one, the easiest way to ensure loyalty is through customer service. Customers want to be loyal, so why do they leave? They leave because of a lack of attention to plain-old customer service. If you want your customers to be loyal, follow these tips:

1. Always tell customers what you CAN do for them. Never tell them what you CAN’T do. If they have a problem, give them a solution.
2. If a customer is angry, let them vent. Remember it’s not personal and do not interrupt them.
3. Remember your customer’s name and use it. Write it down during the conversation if necessary so you don’t forget.
4. Always end each contact (email or conversation) with a “Thank you” or a message of appreciation for their business.
5. When speaking to a customer, make certain that your tone of voice matches your words. Remember, your tone of voice can contradict your message. Actively listening and wear a smile even while on the phone!
6. Follow up on your solution. Contact the customer, at a later date, to make sure that their problem has been resolved and they are pleased with the outcome.
7. Ask if there is anything else that you can do for your customer. Taking the time to ask shows the customer that you value them and often results in increased business and a more than satisfied customer.

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