CUSTOMER LOYALTY - By Jim Watters
January 9, 2023
Customer Loyalty
Customer loyalty may be the best hope for today’s small business owners. It enables downtown companies to profitably compete with the advantages held by mass merchandisers, online conglomerates and larger companies in other cities. Customer loyalty is absolutely the best way to avoid competing only on price. Customer loyalty is a term used when a customer continues to buy a particular brand or shop at a particular business. It means that customers will give a company a look before they buy.
Customer loyalty is important to a business for many reasons.
Customer loyalty helps you plan ahead. Loyal customers are more likely to help the business with future inventory decisions and effectively plan your finances and marketing efforts. They're more likely to provide you with word-of-mouth advertising and they often act as brand advocates for you. If someone eats in your restaurant every single week, he's likely to recommend it to his friends. A loyal customer will tell people about your salon when people ask where she gets her hair or nails done.
The more you know about your customers, the better you can serve them. That's why it's essential to ask people's opinions as often as possible. If you have a retail store or office, you can simply ask people informally what they think about something.
Reward loyal customers with special offers. Giving coupons to your customers is always an effective way to keep them coming back. Create unique customer loyalty programs. Some ideas include: referring new customers, special holiday and birthday points and creating games or contests in which players can earn extra points.
How will your business build customer loyalty? It has to be unique to your business. What works down the street may not work at your place of business. It begins with developing customer services. Be creative. What can your business do for customers that similar businesses can’t or won’t do? Do you know the close friends of your customers? Send these friends a reminder about a customer’s birthday, anniversary, graduation, etc. with gift suggestions from your business. Make you place of business something special for your customers. If customers can’t come to you business and expect special attention, why should they come at all?
Customer loyalty may be the best hope for today’s small business owners. It enables downtown companies to profitably compete with the advantages held by mass merchandisers, online conglomerates and larger companies in other cities. Customer loyalty is absolutely the best way to avoid competing only on price. Customer loyalty is a term used when a customer continues to buy a particular brand or shop at a particular business. It means that customers will give a company a look before they buy.
Customer loyalty is important to a business for many reasons.
- Repeat customers typically spend more than new customers. Because they already trust your business and its products or services, existing customers tend to spend more money than new customers.
- The more customer loyalty you have, the better your profits will be. Repeat shoppers do not require the expense of recruiting new customers. While recruiting new customers is important, it can be expensive – around five times more expensive than retaining a loyal one.
- Loyal customers shop regularly. Because they've already had positive experiences with your company, repeat customers tend to shop much more frequently than new customers. This is especially true around the holidays, when consumers are purchasing gifts and spending more than they typically would during the rest of the year.
Customer loyalty helps you plan ahead. Loyal customers are more likely to help the business with future inventory decisions and effectively plan your finances and marketing efforts. They're more likely to provide you with word-of-mouth advertising and they often act as brand advocates for you. If someone eats in your restaurant every single week, he's likely to recommend it to his friends. A loyal customer will tell people about your salon when people ask where she gets her hair or nails done.
The more you know about your customers, the better you can serve them. That's why it's essential to ask people's opinions as often as possible. If you have a retail store or office, you can simply ask people informally what they think about something.
Reward loyal customers with special offers. Giving coupons to your customers is always an effective way to keep them coming back. Create unique customer loyalty programs. Some ideas include: referring new customers, special holiday and birthday points and creating games or contests in which players can earn extra points.
How will your business build customer loyalty? It has to be unique to your business. What works down the street may not work at your place of business. It begins with developing customer services. Be creative. What can your business do for customers that similar businesses can’t or won’t do? Do you know the close friends of your customers? Send these friends a reminder about a customer’s birthday, anniversary, graduation, etc. with gift suggestions from your business. Make you place of business something special for your customers. If customers can’t come to you business and expect special attention, why should they come at all?
“Okay business managers - so it’s a slow time for your company. You’re not thinking about closing the shop are you? We’re experiencing an unusual period. The stock market is way down but it will turn around. It always does. A lot of people are staying at home. In some communities, the local mayor has closed public meeting places like restaurants and bars.
As a business owner, what will be your response? It should be So What. You have worked hard for your company. Prepare to work a little harder. Here area few ideas.
A. Review your customer lists for the last 5 years- what’s that, you don’t have a customer list? Tsk,tsk. For those companies that do, send out a mailer that describes your delivery services. Include your new products, special pricing and how convenient you make it for customers. Offer a special promotion to former customers to entice them back. Five years- why so long ago. Customers leave a company for a number of reasons. How has your customer base changed? Can you bring back lost customers?
B. How’s that “on-line” market doing? An easily traveled and understandable website could be your new best friend. If you haven’t changed your website recently, get busy. What are the incentives offered to first time buyers? How much do you charge for delivery! (If it’s any larger than zero, think about it.)
C. Does your company email shoppers regularly? This is especially important for cafes. Send them your daily specials and remind all about you speedy delivery service. Send emails to remind customers about birthdays, anniversaries and other special dates for their friends and relatives. Include suggestions about gifts and your delivery service.
D. Have you adjusted store hours for your business? Remind customers that they can order merchandise after 5:00 pm and before 9:00 am. It’s more time for you and more convenience for shoppers. “Call forwarding” relays calls to your company to your home. Just because customers aren’t coming to your place of business doesn’t mean you can’t connect w them.
E. Never say no to customers. If you can’t meet their requests, offer an alternative and why it’s a good option. Show customers you will go out of your way to help them. If they want to return an item, take it back - no problem. Offer a substitute if that makes a customer happy. Certainly, never require a receipt for a return.
Other activities to do include -
Always make it convenient to your customers. Loyalty is the goal. What’s that mean. Customers may not always buy from you but they will always give your business a look.”
As a business owner, what will be your response? It should be So What. You have worked hard for your company. Prepare to work a little harder. Here area few ideas.
A. Review your customer lists for the last 5 years- what’s that, you don’t have a customer list? Tsk,tsk. For those companies that do, send out a mailer that describes your delivery services. Include your new products, special pricing and how convenient you make it for customers. Offer a special promotion to former customers to entice them back. Five years- why so long ago. Customers leave a company for a number of reasons. How has your customer base changed? Can you bring back lost customers?
B. How’s that “on-line” market doing? An easily traveled and understandable website could be your new best friend. If you haven’t changed your website recently, get busy. What are the incentives offered to first time buyers? How much do you charge for delivery! (If it’s any larger than zero, think about it.)
C. Does your company email shoppers regularly? This is especially important for cafes. Send them your daily specials and remind all about you speedy delivery service. Send emails to remind customers about birthdays, anniversaries and other special dates for their friends and relatives. Include suggestions about gifts and your delivery service.
D. Have you adjusted store hours for your business? Remind customers that they can order merchandise after 5:00 pm and before 9:00 am. It’s more time for you and more convenience for shoppers. “Call forwarding” relays calls to your company to your home. Just because customers aren’t coming to your place of business doesn’t mean you can’t connect w them.
E. Never say no to customers. If you can’t meet their requests, offer an alternative and why it’s a good option. Show customers you will go out of your way to help them. If they want to return an item, take it back - no problem. Offer a substitute if that makes a customer happy. Certainly, never require a receipt for a return.
Other activities to do include -
- Inventory- a slow market is an excellent opportunity to count your stock (on premises and off).
- Clean up - dust those shelves, cabinets and merchandise. Clean the floors and wash the windows. A little air freshener goes a long way but don’t try to conceal a dirty store with an aroma.
- Window displays -if your business has the advantage of display windows - make them sparkle. Be creative and informative.
- Stay informed and be aware - news about the virus and the economy change quickly."
Always make it convenient to your customers. Loyalty is the goal. What’s that mean. Customers may not always buy from you but they will always give your business a look.”