5 Tested Ways of Creating Customer Loyalty

By Arnold Mutugi

The cost of obtaining a new customer is seven times more than retaining a regular customer. Customer loyalty is important because loyal customers influence others to be the firm’s customers. Dissatisfied customers may

eventually influence other customers to defect from your business. 

Customer loyalty is very important for starting businesses as well established enterprises. Although there are costly loyalty programs that a firm may undertake, the most cost-effective and long lasting program is focusing on developing relationships with potential customers.

This strategy demonstrates that you care for your customers. You can try this cost-effective strategy by showing that you care for your customers by different ways:

1. Show genuine interest in your customers. Showing genuine interest means that you should let your customers know you well as you know them. Knowing your customers lets them become friends instead of business acquaintances. Getting to know them well will also give you an opportunity to know their birthdates, friends and their relatives as well. This knowledge will help you to celebrate their anniversaries as well as appreciate those people who matter to them. In addition, you can send gifts or offer incentives to customers during their anniversaries.

2. Reward and recognize loyal customers. Loyal customers should be rewarded from time to time regardless of whether there are loyalty programs. You can recognize your loyal customers by sending them thank you notes or newsletters. Rewarding your customers also entails giving them services like transport or loyalty bonuses.

3. Care and make customers feel special. Caring may sound trivial but some employees will only care for customers who appear to be ‘important’. In every organization, a customer should be treated with respect regardless of how he appears outwardly. Showing your customers that you genuinely care for them will not only influence them to be loyal but will make them drag their friends along.

4. Empathize with your customers. Customers are very sensitive on how you handle them. Try to share their feelings whenever they are going through tough times. Your customers may be going through a difficult moment in their lives. Equally, they may be launching a major complaint on particular goods or services. Try to engage them in talk even if the chances of helping them are very mean. Show your willingness to help by giving them alternatives. 

5. Respond promptly to customer queries. Often, customers will need to know how products and services work. Sometimes, these concerns may be trivial or common sense. However, instead of snapping at your customers you should address their concerns as comprehensively as possible. Chances are that the customer will buy the product that he feels he is sure of what it is. This also follows that you should address questions that are irrelevant. Queries may be trivial but on answering them you may have an opportunity to market yourself or another loyal customer’s business. 

Creating customer loyalty requires a singleness of purpose on your part as a business owner. It does not come easily!

If you keep the above five tips in mind, you are on your path to great customer service and customer retention. And remember that poor customer service is disastrous to your business!