Four Ways To Encourage Customer Loyalty

Just about anyone can make a sale, but very few can make subsequent sales to the same people on a regular basis. The first time a customer visits your business and makes a purchase they are entering into a tentative business relationship with you and that is the time to begin encouraging customer loyalty. Some stores seek customer loyalty through frequent shopping incentives or lower prices for people with a loyalty card, but for most shoppers, loyalty goes beyond price.

A company hoping to build customer loyalty by price alone may be surprised to find their customers going to another location and paying more for the same items. Price may get them in the door and if the quality meets the price, may even get them through the checkout line the first time. However, to have them be loyal to your store or your service, will require more steps. There are essentially four ways to encourage customer loyalty and looking at potential customer loss backwards, can help define those steps.

Customer loyalty is based on four basic tenets including communication, relationship strength, perceived alternatives and the resolution of critical experiences. With those in mind, examine your daily business operation. If customers ask to speak to someone in charge, do they get passed around from person to person or are they put in touch with a person who can handle their concern immediately? By communicating with the customer and trying to help them the best way you can, will communicate to them your desire to keep them as a customer.

Even if the resolution to one instance is not to their satisfaction they will be apt to continue their relationship with you than if you simply said no. It would be in the best interest of any company that the only person allowed to say anything to a customer is the owner or highest ranking manager at the time.

This communication will also help build the relationship strength as the customer knows they can count on the business to do what is right by the customer in any given situation. They will also learn through the communication effort that the customer is not always right.

When customers believe they have alternatives, even at slightly higher prices, they are less likely to give your business another chance if communication fails to help build on your relationship. When the relationship is strong, consisting of strong service to the customer, they may find a business offering similar products or services at a lower cost, but the foundation of your relationship will keep them coming back.

At any time a major problem may occur and how that problem is handled will make the difference in customer loyalty. Starting with the question, “what can I do to make it right,” is the beginning of a negotiating session where you and the customer can work out a solution that benefits both parties. Failure to do so will cause the loss of a customer, and once loss due to a critical situation, it is unlikely they will ever return.

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About the Author:
Sheila enjoys working part-time from home. She also enjoys sponsoring and mentoring others, and helping them find success with their work from home base business. Click here to contact Sheila and learn how you can start a work at home-base business.