Customer Loyalty
7 Techniques to Building a “Die Hard”
Customer Base
Customer loyalty isn't automatic; you must earn it. Loyal customers will help you bring in repeat
business and referrals, so they cannot be overlooked. As a matter of fact, you've probably heard of
the 80-20 rule, where 80% of your business comes from 20% of your customers. While that may
depend on the type of business you are in, there is no disputing that holding onto a current customer
is much less expensive than cultivating a new customer. With these things in mind, let's explore some
methods to keep those current customers loyal and have them become advocates for your company.
If you don't yet have a specific plan for customer loyalty, these tips will help.
1. Don't Overlook Current Customers in your Marketing
Give some thought to the way you market to current customers. Can you build customer loyalty by
offering them things that are not available to non-customers - maybe a free consultation or something
else of value? Remember, it's the perceived value that is important to your customer. Even if the
item you offer costs only your time, it still may be extremely valuable to your customer.
Exclusivity will also go a long way toward making your current customers feel that they are getting
something special from you. Make them aware that the offer is available to them, and only them.
Many companies are so interested in gaining new customers that they make better offers to new
customers, often resulting in feelings of betrayal and abandonment by their current customers. Cell
phone companies are famous for this because their current customers are usually tied into a longterm contract. This IS NOT a good way to do business.
2. Stay In Touch with Your Customers
It's a proven fact that the more a customer hears from you, the more likely you will be on their mind
when they require your services. These "touch points" do not need to be sales oriented. As a matter
of fact, the less "salesy" they are, the better. Send greeting cards at holidays and birthdays. Let them
know what your company is up to simply by sending a short newsletter each month.
Make sure the information you send is useful because that will help build trust and strengthen the relationship.
If they perceive that you are helping them, they will be more inclined to become loyal customers and
advocates.
3. Be Sure Your Staff has "Bought In" to the Quest for Customer Loyalty
Customers want reliability and familiarity. They are looking to build a solid relationship just as much
as you are. They want to deal with people who know them and their preferences. They may even let
you make a mistake now and then because it is easier to let you slide than "train" a new company to
take care of their needs in the way they have taught you; this means that your company must have a
loyal workforce. Constantly changing employees will do nothing toward building strong customer
relationships. Follow this rule of thumb: If you treat your employees well, they will treat your
customers well.
4. Know the Stages of Loyalty and React Accordingly
It is a step-by-step process to grow customer loyalty; it won't happen over night. The six stages of
loyalty are: Suspect - Prospect - First Time Customer - Repeat Customer - Client - Advocate
Let's take a brief look at each stage. A suspect is someone who might have interest in what you are
selling, but you don't have enough information about them to know for sure. A prospect is someone
who definitely fits the profile of a customer who would buy your product or service. A first-time
customer has purchased from you only once, while a repeat customer has been back two or more
times. The client stage is where loyalty becomes most important. The mindset of a client is one of
being "under your wing." They feel that you are looking out for their best interests and will not steer
them wrong. Once you have moved your relationship to this point, the next stage is easy. Your
customer becomes an advocate when they begin working to help you sell your product, whether they
know it or not. They refer friends and acquaintances, always speak positively about you, and bring
your name up without being prompted. Obviously, the client advocate is the greatest customer you
could ask for!
5. Don't Sell Until They are Ready to Buy
Customers today are better informed than ever. They have access to information that allows them to
easily research and compare goods and services. They are also more intolerant than ever about
being "sold to." They want to be treated with respect and they expect personalized and pleasant
service. You can take advantage of this by keeping in touch with customers on a friendly basis and
staying on their minds. When they are ready to buy, they will think of you.
6. Deal with Problems and complaints Immediately
Most of the time, the customer rarely makes a complaint with the company. Instead they complain to
their friends, neighbors, coworkers, and anyone who will listen. For this reason, it is important to
follow up with your customers and make sure there are no complaints; if there are, you must attend to
them immediately. Research shows that a dissatisfied customer is more than five times more likely to
tell people about his negative experience than a happy customer will talk about their positive
experience. However, you can turn the tables on an unhappy customer by fielding their complaint and
solving the problem. How many times have you heard someone talking about how nice it was to have
someone actually listen to their complaint and take care of it? The reason people talk about situations
like that is because it is a personal victory for them and, they take ownership in getting it resolved
properly.
7. Use Multiple Channels to Communicate and Stay Responsive with Your Customers
Recent research suggests that customers who receive communication through different methods are
more likely to remain loyal. Their perception is that you are making an effort to keep them informed
and provide customer service using a variety of channels at your disposal. As long as the information
is valuable and not sales-oriented, your customer will appreciate it. This is especially true in dealing
with customer support issues. The moment you begin using email, postal mail, and phone calls for
the "hard sell" is the same moment your customer begins looking elsewhere.
You can use these seven tips to start gaining loyal customers right away! On occasion, you may want
to come back and review this list to make sure you are still doing everything you can to create loyal
customers. Keep an eye out for the next installment in the series where we "get into the heads" of
buyers to find out what makes them tick.
Best Regards!
Follow Your Customer Inc.