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.

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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