There are as always a number of things that it is important to consider when looking at customer loyalty. Is it important? Can it be measured? Should it be measured? How do you earn your customers loyalty?
Anyone who is in business will tell you
that the single most important thing to achieve, bar none, is customer loyalty. This is because it is so difficult and expensive to get new customers. You can see how much money is being spent on advertising today. Just look around. I bet that there is not a room in your house that does not have som.companys logo in it somewhere. Advertising is among the top expenses in the budgets of all successfu.companies.
You must make the most of the customers that you have. That does not mean that you squeeze the last drop out of them. You would not build much loyalty if you did that. You must make them want to return and do business with you again.
When I started out in retail the older men in the shop used to say to me that I had not sold until I had seen the customer return to the shop.
Customer loyalty can be measured in many ways. Not by what people say but by what they do. Its not much use asking them if they are loyal. What would you say if asked? You would say yes. Like the vast majority of people. For example, what do you say when the restaurant manager asks you if you are enjoying your meal? You say,Yes, its very nice thanks, Even if you are not entirely happy with it. You will just go somewhere else the next time. There are very few businesses that that doesnt happen to.
You measure your customer loyalty by organising a system of recording their dealings with you.company or website etc. If you see the same names/people returning again and again you know that you may have loyal customers. However, that is not all. You must also look at their spending patterns. If they are spending consistently high amounts in a way that you would expect you have a loyal customer. But, if their spending is reducing it could mean that your product no longer satisfies their needs or that they are getting it somewhere else for any number of reasons, to numerous for this medium.
It is my opinion that there are three major factors in building customer loyalty. They are value for money, quality of service, an.complaints handling. You may surprised to see service an.complaints handling listed separately. That is to emphasise the importance o.complaints handling. With ever.complaint you get you have an
Opportunity to convert a liability into an asset. You must listen carefully, do not argue, speak politely and where possible agree with the customer and then give them what they want. Always give them what they want and always add a bonus. Give them more than they want. Especially if it is clear that they are in the wrong. You get nowhere embarrassing your customers.
We all know someone who was badly treated by some business and swore to all her friends that she would not go back there again and asked everyone else to do the same. You occasionally meet someone who went into the same situation and came away singing the praises of tha.company. That is what you want to achieve.
Always remember that you are selling an idea not just a product. There are many people selling the same product as you are. You must sell the idea that they should buy from you and keep buying from you. More of Dan Jacobs'
gerryonline.com business articles at gerryonline.com.
