JOE SMITH
Special to the Record
“It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.” – Warren Buffett.
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Building customer loyalty cannot be generated with one marketing campaign. In fact, it is not something you can buy outright nor set down in a blueprint or come off an assembly line. Loyalty is all about building relationships through positive customer experiences. It’s how you make them feel about themselves and you.
All kinds of studies and reports highlight the value of having a loyal customer base. For example, one Zendesk report states that 90 per cent of customers will spend more with companies that personalize the customer service they offer them and loyal customers are more likely to recommend your company to someone else which helps in improving brand reputation.
One of the primary ways of building loyalty is by providing exceptional customer service. This must run through your entire operation. From the time they land on your website or social media pages to when they walk in the door or call looking for assistance, you need to provide them with the best possible experience.
Another way to generate loyalty is to communicate your values as stated in your strategic plan. These are the attributes that are unique to your company and help you stand out from the competition. According to a study by PR firm Edelman, two-thirds of customers buy based on beliefs. We’ve seen that over the past few years as many businesses have come forward to make a stand about issues that are affecting their communities. This does not necessarily refer to politics as there are many issues that you can highlight as long as they remain true to your core values.
Numerous other ways can help you build loyalty such as creating a customer loyalty program. These can range from a simple punch card to a system that allows the customer to collect points to be used towards a reward, be it a free product or a discount on a future purchase.
Referral programs are like loyalty programs in the sense that they provide benefits or rewards if customers refer your business to friends and acquaintances. Most of us have had some experience with these kinds of programs, which can be both effective and affordable.
Building customer loyalty helps retain customers. Generating new customers can be up to five times more expensive than retaining a loyal one. While it is still important to bring in new customers retaining loyal customers can bring in higher profits at lower cost.
One last point to remember, people may forget what you said, or forget what you did, but people will never forget how you made them feel.
Joe Smith is a communications consultant and an accomplished fine artist. He can be reached via email at joesmith@shaw.ca