Tweet

Can your customers be as loyal as a big brown dog?

Written by: Carol Smock

Article Overview: Because most businesses monitor new sales as the key measurement of healthy, existing customers are often forgotten about until they "shop" again. While focusing on new business is important, so is building a relationship with those you've already sold. So, how does a business foster loyalty with its customers? Take a lesson from from the dogs...

Can your customers be as loyal as a big brown dog?

First, I must start by defining the word "customer". A customer is that person or business who has already purchased from you or your business at least one time. Money has exchanged hands. Now, I know in many industries, your Sales Manager is likely to tell you to consider everyone you meet "a customer"... but reality is, if they haven't bought from you or your business, ever, then they are NOT a customer. The blogs that I write discuss ways to retain those customers you've already won and should not be confused with strategies to acquire new customers.

Now, on to our first discussion...

One statement that I hear over and over that I know is not true... "Customers are not loyal anymore". The truth is this... many businesses have gotten lazy. Business owners, both large and small, often EXPECT their customer to be loyal, "just because". "If we sell them right and offer good service, they will stay forever." There is value in this statement and it certainly helps if your salesforce is selling the customer correctly, but even if they don't, a customer can develop loyalty through effort on the part of the business. Creating loyalty takes effort on the part of the one expecting loyalty - take for instance, the loyalty of a big brown dog (do you get it yet?)...

When I brought my chocolate lab home (he was already 4.5 years old), he was quite the independent mug. I did everything I could think of to make him like me and want to stay. The most critical period I was told by the Rescue Group was the first 30 days. If he didn't run away in the first 30 days, he would bond and become my best friend, and most loyal friend. So... for the first week, I hugged on him, kissed his nose, took him for walks, fed him, gave him treats, bought him toys, played with him, I made funny faces, we played fetch, we danced, we snuggled, and I talked to him, constantly, like he could understand what I was saying... are you starting to see a pattern here? It took effort on my part to foster loyalty from him. But, once I got it - it was mine for life. He lived with me for nearly 6 years before he passed away... and, at the end, his eyes told me "I want to be with you even if it means living in pain". That's some pretty amazing loyalty! Cute story you say, but really Carol, how does this relate to my customers?

It's easy. Research shows that if you can build a bond and create a connection with your customer within the first 30 days, they are 78% more likely to stay your customer for life. But, it takes effort on your part... You have to "hug" them, "kiss" them, take them for walks, feed them, reward them with toys, treats and playtime and you have to talk to them! If you don't, they will find someone else who does...

Enter the Customer Relationship Management Strategy, often referred to as simply, Customer Retention. It is more than smiling pretty and calling your customers "darlin". Customer Retention is a strategy, an over-arching philosophy, that can be executed through individual contact as well as through automated means (technology).

Just like fostering the loyalty of your dog, you must foster loyalty with your customers. One thing is for certain, when it comes to whether or not your customers are loyal - YOU are in control. If you are reaching out to each and every one, and letting them know that they are important to your business and that you appreciate the money they spend with you - they will respond with loyalty, and quite possibly... a big slobbery puppy kiss! 8-)

Related Articles
  Extraordinary Customer Service: Where Does It Begin?
  You Can't Brown Nose Your Way to Success
  Increase Sales By Staying True to Your Core Business
  Taking Current Customers For Granted Is Something Your Business Cannot Afford
  Increase Sales by Building a Comprehensive Profile for Each of Your Loyal Customers

Article Tags: best friend, blogs, business owners, chocolate lab, critical period, funny faces, loyal friend, loyalty, rescue group, salesforce, time money, true customers, truth



Related Forum Posts
Re: a legacy - [quote="TheRainmaker":36ce5c3z]sounds like your grandfather left a real legacy. It reminds me of Dale Carnegies famous quote, 'people dont care how much you know, until they know how much you care' An interesting side bar is the idea of customer loyalty. I recently worked with a large bank on their new 'loyalty' program. I called it like I saw it, they didnt have loyal customers....they had hostages. If anyone reading wants to learn more about delivering great customer service, they should read "Raving Fans' by Ken Blanchard and "how to win friends and influence people' by Dale Carnegie Two of my favourite resources... The third resource I can always count on was my dad. Although he died almost 18 years ago, he raised me and my 5 brothers and sisters with a strong work ethic, a respect for people of all backgrounds and a healthy respect for time. In fact, I am often teased for always being early or at least very punctual and I find it sad that in today's world, we seem to have lost a lot of the basic tenets of common sense and courtesy.[/quote:36ce5c3z] Very true - its important to create loyal customers and I've always felt that great customer service is a great way to start that process. If I deal with a company and its clear they don't care about my business and they don't support me, I look around for someone who does. Why support a business that won't support me? Chris
Re: Marketing and PR ideas related to a Credit Organization - Hello GT Bulmer! I will answer your questions with great pleasure. As we use face to face marketing, our credit agents meet our customers very often, so it isn't problem to inform them about any action or meeting and stir them to come to the meeting area. And what about visual aids- i think i don't need to use them. Because in my opinion presentation will not be interesting for them at all. I think we have to organize a concert (or an interesting action) for them, to give some prizes, to make them have a wonderful time, but do it in such an original way which will make them to remember our organization and to become very loyal to our services. That is why now my aim is to invent such an original action which will be possible in villages. Thank you very much for feedback!
Re: Social Media Effectively? - First brand that comes to my mind is "Sephora". For those of you that may not be familiar with Sephora; it is THE superstore of cosmetics, beauty and skin products. Most of their products are targeted to women, but there are great lines for men as well. I have been a loyal customer to Sephora for a long time. What has impressed me the most about Sephora is that they provide a consistent level of high quality service both on the web and offline. The offline and online experience of a customer is completely integrated. It means that, for example if I purchase a product at the physical store, a few days later I would receive a follow-up email from Sephora. See how the whole purchase experience transcended from the store to the net. The follow-up emails would ask you to rate the products that you purchased, or write a review on their website, which has become one of the biggest community of skin care and beauty product users. By doing this you are eligible to receive free samples at the store- Sephora is driving their customers right back to the shop. In my opinion, the seed of Sephora's huge success is their consistency in service. When it comes to generating interest and awareness, social media marketing can be highly effective, but if what you are offering falls short on the customers' expectations and is unable to satisfy their interests, they would most likely to never come back. Something to think about before executing social media strategies..
Re: Calling All Entrepreneurs - Hey Kamna, In regards to "social media" marketing, Facebook,Twitter and blogs are definitely the leading players. However, my belief is that when you are successful at satisfying your guests, they will handle your social media marketing for you. Your restaurant may have the largest fan base in Facebook, but can you really say that all of them are, or ever will be loyal customers to your restaurant? At the end of the day, the most important factor that will make your customers to return, is a superior dining experience, which starts as soon as they enter into the parking lot. I am not saying that you should not focus on social media marketing. I have come up of two tactics that you may find useful, other than using Facebook and Twitter. 1. Check out "meetup.com". Meetup Helps groups of people with shared interests plan meetings and actually meet up offline. There are tonnes of groups within the GTA area, and the groups are always looking for new venues that offer good food and service. You can contact group organizers by email, or even join the groups that you are interested in and host the next meet up at your restaurant. 2. blogTO: my favorite local blog is blogTO. It has an extensive amount of reviews, and articles about all things Toronto. It has become an active community, and a great resource centre. Make sure that you are in the list, so that people can post reviews:) It would be a good idea, too if you can moderate the comment section to encourage participation. Ryann
Re: Marketing to Wealthy Consumers - Hi Russell - lots of great ideas so far! I haven't seen talk about referrals yet though. It's the most powerful way to reach more wealthy consumers if you already have an established base. I'm assuming that your customers may be repeat clients but there is a long time period between purchases (they don't come every month for a new item). Have you tried any referral programs for existing customers or thought of a way to stay in touch with your customers on a regular basis so at least they keep your company top of mind?


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Tweet

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

What Makes an Extraordinary Business Consultant?

Life is a Balancing Act!

Work at Home Moms and Their Bad Rap?

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.