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Customer Loyalty

Written by: Will Atkinson

Article Overview: Customer Loyalty is a buzzword these days, but it is of critical importance to retailers. In a down economy it is crucial to take care of your existing customers because they demonstrate the best ROI on marketing efforts, and will help lead your sales out of a downtrun.

Customer Loyalty

Customer loyalty is in vogue right now, everyone wants to be a VIP and to get special offers, but what does it mean to you, the retailer?

Loyalty programs are a hot topic, and rightly so, but they have to be executed properly to make sense for a small retailer. There are countless examples of loyalty programs from grocery stores and big box retailers, but how special does a customer feel because they got a discount for carrying a card on their keychain? Do customers really value e-mailed coupons, or do they want to be treated differently in a personal way?

I think that retailers can derive a lot of immediate benefit from a well designed loyalty program, and that benefit will continue to accrue as long as you keep that customer. The idea is to understand more about your customers so that you can provide them with better service, product availability, and targeted marketing to help fulfill their desires.

Is price a problem? Sure, customers are always going to shop on price, but you can reduce the impact of a competitor's price promotion if you have properly positioned yourself as a customer's retailer of choice. What does that mean? It means they'd RATHER come to your store than the competition because of the experience they have when they're there. It means letting your customers know that you understand their needs and wants, and that you can accommodate them in a price conscious and friendly way.

This takes a combination of marketing by mail and e-mail, as well as deriving feedback from customers and employees to understand buying patterns. Carefully analyzing this data will give you the power to satisfy your existing customers, even in a recession, and that is invaluable. Emphasize the value you provide, keep them happy, and keep the sales rolling in.

Don't neglect your new customer marketing, but utilize the data you have to build a powerful loyalty program with a great ROI and long lasting benefits.

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Article Tags: box retailers, competitor, countless examples, coupons, customer loyalty, customer marketing, desires, e mail, examples of loyalty, existing customers, grocery stores, hot topic, keychain, loyalty program, loyalty programs, product availability, recession, targeted marketing, vip, vogue



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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.
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Re: Welcome to Entrepreneur University! - Hi Evan and GT, Can you clarify? If you join the "Preferred Customer" you are not entitled to commission? Why? This is the the $79.95/month account, I don't understand why you are not getting commission from it?
Re: Email Marketing Benefits - Robert, Many lists consist of more prospects than customers. Customer lists are the best, but they are created because prospects successfully transform into customers.


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