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How to obtain a loyal customer to your business

Updated on April 2, 2012

It is a very common fact that 80% of the business comes from 20% customers. Then why don’t we treat them well. Most companies forget this because they don’t believe in this phenomenon. The behaviors of loyal customers are quite distinctly different from the one time shoppers. This is true irrespective of the type and market area of the business.

Now most of the companies understand this and are trying great to retain them. Loyalty programs, rewards etc can be seen everywhere. The steps to attain customer’s loyalty is very simple – Trust and service. But it is very difficult to follow them. Most of the business think that pricing has its effect on customer loyalty but it is not so. In fact a business can sell their product or service at a much higher price to a loyal customer coupled with the benefits and excellent after sales service.

Customer is King

The following steps are vital to every business to increase the loyal customer’s base: -

1. Acknowledge every customer’s demand.

2. Talk politely personally or through phone

3. Avoid argument with customer

4. Greet them and provide respect to them

5. Attend any complaints with ease and seek all possible reason to understand it better.

6. Share realistic facts and figures with customer.

7. If you commit, stick on to it even there is a loss.

Training to Sales Staff

It is very essential to provide a training regarding the basic etiquette to handle a customer to all the sales staff. And providing knowledge is not enough but make sure they practice it. It also implies to the hiring process as well. A cheerful and happy candidate will always have a better chance of the job.

Customer Complaints

It is true that attending a loyal customer’s complaint is far less expensive than a non-loyal customer’s one. Hence all measures to be taken so that either your product/service complaints are less or you have a huge database of loyal customers. Even after fixing the customer complaint, it is advisable to follow them up for some time so that you will understand the usage of the product/service and to make customer happy and to add them under “loyal customer”.

Marketing by Loyal Customers

Loyal customers can be the best advocate for your product or service. The word of mouth publicity done by loyal customers are far more effective than any other means of marketing.

The chances that your product or services are purchased by any new customer referred by a loyal customer are high. The money and effort spend to get a new customer reduces drastically if they are referred by a loyal customer.

Special Care for Loyal Customers

Most of the business takes care of their loyal customers in a very special way. Some of the common methods that are visible in the market today are: -

1. Special “Discount” to loyal customers

2. Free gifts with every alternate purchase.

3. Greetings and Flowers for their anniversary or birthdays

4. Loyalty programs involving special rewards and trips for loyal customers

Today winning a customer is a great deal and keeping them is even greater. Competition and market shrinkage has made all business to go out and win customers. All companies have understood that Customer Relationship Management is not a luxury but a necessity in today’s market. After all a customer can break or make your business.

What according to you is the top criteria to select a product or service?

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As a loyal customer, will you purchase your product at a higher price to get a better service?

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