Creating customer loyalty

Feb 24 2005

It’s a truism that loyal customers will buy more of your products more regularly and the chances are that they will probably recommend your business to others. So if you want your clients to come back again and again, it’s essential to build long-term relationships with them and with other people key to your business.

One way you can do this is through relationship marketing. This means knowing as much as you can about your customers, engaging in two-way communication with them and identifying those potential and existing customers that are likely to provide a long-term, profitable relationship.

But be wary of the ‘busy fool’ syndrome. If you take on new relationships, figure out what these clients will bring to you. In the early days, it may not be easy to turn down business, but avoid situations where you are overstretching yourself for limited gain.

Take potential and existing customers’ characteristics into account when you are considering whether relationship marketing can work for you. Some customers may only be looking for the cheapest product and the quickest way of getting it, and will have no interest in high levels of service or loyalty schemes, for example.

“You can’t always deliver a Rolls-Royce service to all your clients, but the more you know about them, the more you can differentiate between service levels. But ensure your staff can do this too,” advises Nick Hood, senior partner at corporate recovery firm Begbies Traynor.

How to make relationship marketing work for your business

  • Trust between both parties is crucial

  • Communication is also vital – don’t allow issues to build up in the background

  • Set standards and stick to them

  • Find out what your customers’ expectations are and monitor them. It can be all too easy to keep providing the same service, but you must be aware of your customers’ changing needs

  • Learn to stand your ground. Don’t dilute your brand or your product with potential customers who are going to make small or one-off purchases

  • Be prepared to sacrifice the price, but never compromise the service

    (24/2/2005)

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