How to Successfully Build Customer Loyalty

August 4, 2008 · Filed Under Client Retention · Comment 

By: R.l. Fielding

In today’s competitive marketplace the race to increase profits by cultivating customer loyalty is going at full speed. Customer retention is not only a cost-effective and profitable strategy, it is a necessity for businesses wanting to stay ahead of the pack.

As consumers are spending less thanks to soaring fuel and food costs, companies are more reliant than ever on the loyalty of a dedicated customer base to maintain a competitive advantage. Following the Pareto Principle, 80% of your sales come from 20% of your customers, and in a recession the numbers are closer to 95% and 5%, says Ajit Maira, senior vice president of the Information Technology Services Marketing Association. Since these returning customers cost less to reach, are less vulnerable to ploys from the competition and buy more over time, companies need to give customers an incentive not to go elsewhere for the same product or service.

One of the most successful ways to achieve this cost-effective retention is through the use of customer loyalty reward programs. By rewarding the ongoing purchase of product or services, companies achieve long-term relationships with customers. With a variety of loyalty programs available to companies, the key is discovering what works best for your needs and goals.

Build a Strong Foundation Read more


Benefits of Customer Retention: Statistics

August 3, 2008 · Filed Under Client Retention · Comment 

Benefits of Customer Retention: Statistics

1. Acquiring new customers can cost five times more than satisfying and retaining current customers

2. A 2% increase in customer retention has the same effect on profits as cutting costs by 10%

3. The average company loses 10% of its customers each year

4. A 5% reduction in customer defection rate can increase profits by 25-125%, depending on the industry

5. The customer profitability rate tends to increase over the life of a retained customer

6. Companies can boost profits anywhere from 25 to 125% by retaining merely 5% more existing customers.

7. Only one out of 25 dissatisfied customers will express dissatisfaction.

8. Happy customers tell 4 to 5 others of their positive experience. Dissatisfied customers tell 9 to 12 how bad it was.

9. Two-thirds of customers do not feel valued by those serving them.

Thanks for reading my blog. I appreciate you spending some of your valuable time with me today!

I specialize in creating customized marketing solutions for small business. Contact me at georgann at catchphrasemarketing dot com, or call me at 888-494-8445 to discuss how you can get more clients and increase profitability without increasing marketing expenses. Yes, you really CAN have it all!


Do You Really Aim To Please?

August 2, 2008 · Filed Under Client Retention · Comment 

Guerrillas know the importance of customer service. Often, with competitors offering identical products at comparable prices, the only thing that will set you apart is the human element. It was department store founder John Wanamaker who said “the customer is king.” Do you treat your customers like royalty? Does your staff?

Your employees and salespeople take their cue from you. If you establish a policy of bending over backwards to provide superb customer service, you’ll have a courteous and flexible staff. I’m not joking here. Flexibility is an essential component of your business policy. Obviously a small business can’t survive without procedures and policies. But it’s equally important to empower your employees to consider situations on an individual basis and make exceptions when necessary. If you are willing to see a customer as a unique individual in a specific predicament and adjust your policies accordingly, you will have a customer who feels special. Read more


What’s Your Frequent Buyer Program?

August 1, 2008 · Filed Under Client Retention · Comment 

Despite your better judgment you may sometimes indulge in the belief that the world is a fair place and that you can offer the same deal to everyone, regardless of their size, interest, loyalty and buying power. But the realities of the market require you to customize your offerings to prospects and customers, offering great deals to some customers and mediocre ones to others. Frequent use cards make it easy to differentiate.

Customers know that the offers they receive will be based on their past loyalty and the size of their budget. This concept was first explored when airlines instituted frequent flyer programs to reward and encourage customer loyalty. Retailers soon jumped on the bandwagon, offering frequent use cards that reward customers with a free item after they buy a specified amount. It works for loaves of bread, pounds of coffee, video rentals, haircuts, and exercise classes to name a few products and services.

Let’s face it, profit margins are tight and there’s a limited amount of funds that customers designate for purchasing. It is only logical that you direct both marketing efforts and special deals to those customers who will yield the greatest return. Differentiation means that you abandon the Herculean task of trying to be all things to all people in favor of being some very specific things to certain people. Many Guerrilla salespeople and entrepreneurs have applied this technique and increased profits.

Differentiated marketing Read more


Client Retention

May 28, 2008 · Filed Under Client Retention · Comment 

Customer loyalty is the holy grail of business. It is the ultimate achievement, the ultimate compliment. We want the people who do business with us to always come back for more of what we sell and offer, and to never go to a competitor.

Unfortunately the business owner’s dream of undying customer loyalty is too often unreasonable. When was the last time your client heard ‘thank you’ for their purchase after they left your business? When was the last time you personally told them about a new product or service you’re offering?

If you’re like the vast majority of business owners, the answer is “never” to the above questions. You are too busy running your business to make personal contact outside routine operations.

Email marketing (aka ezine or newsletter) is a cost-effective, time-efficient way to stay in touch with your clients and with people who have contacted you requesting information about your product or service. There are no brochures to print, no envelopes to stuff, and no postage to affix. It runs on autopilot.

You’re probably too busy to learn a whole new technology. The good news is that email marketing can be done by a company that specializes in email marketing. Having this type of marketing done for you does not turn over the keys to the kingdom, or to the vault. Reports and statistics will be provided to you on the specific aspects of each mailing’s performance.

Contact me at georgann@catchphrasemarketing.com, or call me at 888-494-8445, with any questions you may have about electronic marketing (email, newsletters, ezines) or to discuss how using these marketing methods can quickly improve your business’ profitability. I can show you how to do it, or I can do it all for you.

Also, you can go to www.catchphrasemarketing.com to get even more information on the benefits of using email marketing in your business