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Why Is Building Customer Loyalty So Difficult?

Written by: Leanne Hoagland-Smith

Article Overview: One would think that building loyal customers is truly a no-brainer? Yet, businesses continue to turn off far more customers than they turn on! So what is the answer to building customer loyalty?

Why Is Building Customer Loyalty So Difficult?

Today’s marketplace is very competitive even without the current economic business challenges. With the cost to acquire a new customer 7 to 10 times higher than to keep an existing customer, small business owners to the large Fortune 1000 companies need to build customer loyalty at every opportunity.

Yet, the business world continues to turn off customers instead of turning them on. During the last 60 days, I have personally experienced the following poor business practices:

1. Not honoring promised delivery dates
2. Not communicating order status
3. Charging charge accounts without permission
4. Invoicing for material returned
5. Making excuses by blaming others

What is interesting to note is that all of these businesses continue to ask for more business, but in all honesty they cannot efficiently and effectively handle the business that they have.

Maybe it is just me, but have you noticed that when you make the first purchase, the vendor engages in good to outstanding customer service? Then you make a second purchase and maybe you hear from your sales contact a couple of weeks later. Finally, after the third purchase, you just become another number and the customer service drops off the face of the earth.

Of course, all of this poor customer service makes you even more aware of exceptional customer service. For example, I noticed at a local independently owned grocery store that everyone from the cashiers to the baggers all say "Hello" with a smile and then ask "How are you?"

During a business trip to Ocala, FL, I had the opportunity to eat at Miller’s Ale House, a local establishment. By the second visit, the server remembered my name, my beverage and that I liked my salad dressing on the side. The owner received a letter from me praising the outstanding and personal attention that I received.

Small business help coaching tip: If you want to build loyal customers, accept responsibility that the buck stops here at all levels of your business. Become proactive. If a problem exists, contact your customer and take any lumps. Apologize and make a personal assurance that the problem will not reappear. Consider investing in an outside consultant or business coach. Chances are these issues are the results of symptoms and the real problem has yet to be addressed.

Related Articles
  Is It's Never Too Late or Early to Build Customer Loyalty
  Why Customer Relationship Management (CRM)?
  Revealed key elements of a successful customer loyalty programs
  Tips on Building Customer Loyalty
  Loyal Customers Build Sales

Article Tags: ale house, baggers, business challenges, cashiers, charge accounts, customer loyalty, delivery dates, economic business, exceptional customer service, face of the earth, fortune 1000 companies, invoicing, loyal customers, outstanding customer service, personal attention, poor business practices, poor customer service, salad dressing, small business help, small business owners



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Re: From Sales to Marketing - Loyalty, Glad to know a little about you. Yes, this forum holds quite a bit of useful information. We hope you will join into the conversations and get to know us. Welcome!
Type of business with building - If you owned a building and Wal-Mart was opening its doors across the street in a previously unoccupied area (along with 12-14 small shops), what type of business would you start? Here are the considerations: 1. Money is a non-factor 2. Building is fairly large (10,000) square feet 3. Building is on the corner of a busy intersection (about to get much busier)
Re: Two Useful Books To Help You Focus On The CLIENT - Hi David, To add to your thread, I'd like to recommend Jonathan Tisch's "Chocolates On The Pillow Aren't Enough: Reinventing The Customer Experience". Tisch's book includes content on "Welcoming Customers", "The New Art of Customization", "The Challenges of Customer Diversity" and "Offering Something Extra to Your Customers" to name a few.
Re: how many hours do you spend in here per day? - Difficult to say.... I'd say I'm here an average of 30 minutes a day.... there's only five folders that I read every day... others I only read if there's some interesting post title...
Re: how many hours do you spend in here per day? - [quote="OmnivoreInk":12jww1u3]Difficult to say.... I'd say I'm here an average of 30 minutes a day.... there's only five folders that I read every day... others I only read if there's some interesting post title...[/quote:12jww1u3] Hi Barbara, So can I ask what are the five folders you follow everyday?


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