NFIB

Develop a Loyal Customer Base
06/ 17/ 2002

by Vicki Gerson

It is always more profitable to have a base of loyal customers than it is to have a large number of customers who are fickle. Research on buying habits indicates that it costs seven times more to make a sale to a new customer than to an existing one. So, how do you keep your customers coming back for more? Remember, it's not always the price that makes them return.

If you've been to Las Vegas, you know that one casino is like any other. You can lose--or maybe win--in any of them. How do these businesses keep a customer coming back to their establishment to play? They treat their best customers like royalty--free rooms, free meals, private gaming rooms and many other additional perks. Although you're not the owner of a large casino, there are many ways you can cultivate customer loyalty by giving a little extra.

Know customers personally.

Smart business owners know regular customers by name. They remember the information customers share about their family and ask about the kids or the dog the next time they see them.

Provide exceptional service.

A small grocery store's deli department didn't have a special order ready when the customer arrived at the designated pick-up time, so they delivered the items free of charge that afternoon. By not making the customer return to the store, she felt valued. Even though this grocery store's deli prices may be slightly higher than at a larger grocery chain, this customer will likely shop there again because of the personalized service.

Whatever your business, you can give your customers more than your competitors. Take your most loyal customers out to lunch or provide a small gift for them. If you own a retail store have a special sale for your best customers only.

Don't make promises you can't keep.

Even though you may not get the sale, don't promise what you can't deliver. If customers trust your word, theyÆll come back to do business again.

Follow-up with a phone call.

If you own a restaurant and held a private party, call the next day to see that everything was satisfactory and thank the person for their business. This call could result in another booked event and a lead to referrals.

Also teach your sales people to follow-up. Make sure they return customers' calls and solve any problems.

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