Customer Loyalty - business/Not at

[Guest guest]

I also sent this to my business group, but thought that I might as well send

it here too. Chris, feel free to tell me to put my head in a bag and shut up.

;-)

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Living Up to Customer Expectations

 

Making Loyalty Pay

 

Strategies for sales, service and manufacturing/construction businesses.

Sales

Hold special sales and provide discounts for loyal customers.

Create a compelling and efficient shopping experience, whether in a store

or online.

Handle returns and service requests promptly and efficiently.

Service

Meet deadlines.

Provide high quality work.

Use customer satisfaction surveys for feedback.

Heavy Industries

Use customer satisfaction surveys for feedback.

Create incentives for employees to improve customer satisfaction scores.

 

Pay more attention to pricing, especially when dealing with commodity

items.

 

 

 

With the proliferation of vendors in the online marketplace, customers have

more choices than ever before. As a result, savvy businesses are working to

improve their customer loyalty programs. One of the greatest benefits of the

digital age is that consumers and businesses have more buying choices than ever

before. Global competition and the ability to view product and pricing

information at the click of a mouse have empowered buyers in a way that wasn't

possible

a decade ago.

 

" Businesses are under tremendous pressure to perform up to customer

expectations, " says Marc McCluskey, research director at consulting firm AMR

Research

in Boston. " If customers are not satisfied, they can usually find another firm

to do business with. " Among the leading reasons customers switch: inferior

products, poor service and support, and a perception that they're not receiving

adequate value. Although customers are almost always sensitive to pricing, it's

rarely a make or break proposition.

 

The fallout is enormous. Experts say that attracting a new customer can cost

five times as much as retaining a current one and it can cost 16 times as much

to bring a new customer to the same level of profitability as a current one.

 

Frederick Reichheld, author of " Loyalty Rules! " , has found that less than 50%

of customers at a representative sample of U.S. companies say the firms

deserve their loyalty. What's more, " Typical firms lose half their customers in

fewer than five years, " he notes. Yet, Reichheld's research indicates that a 5%

increase in customer retention results in a 25% to 95% increase in profits.

 

Part of the solution for maintaining customers, says McCluskey, is finding

the right business niche and cultivating the right customers through

segmentation. " You can be Nordstrom or Wal-Mart but you cannot be both, " he

says.

Creating a compelling and fulfilling experience, from the initial phone call to

product delivery, also can pay huge dividends. So can loyalty discounts for

longtime customers, and a commitment to getting things right. At luxury hotel

chain

Ritz-Carlton, for example, every employee can spend up to $2,000 without

management approval to resolve a guest's problem.

 

Another strategy is customer loyalty programs. Airlines, hotels and

supermarket chains have embraced the concept—and it can work well for many

other types

of businesses. Small retailers, for example, can feature frequent-buyer

programs that offer discounted or free products after a certain amount of

purchases

or sales amount is reached.

 

One low-cost strategy that's growing in popularity is to collect customers'

e-mail addresses, and then send periodic newsletters with special offers and

coupons or invitations to attend special events. Make sure your correspondence

conveys the message that those receiving it are " selected " or " special "

customers.

 

The key is ensuring that customers receive something they perceive to be

valuable, whether it's free product, a discount or expedited shipping. However,

if

every business within an industry uses the same type of program, the value

plummets. " Then it's possible to get the same rewards everywhere, " McCluskey

says.

 

Ultimately, it's important to remember that loyalty isn't something that just

happens, it must be earned. When a business understands the lifetime value of

customers and can offer them a positive experience throughout the sales and

service cycle, they're almost certain to achieve many happy returns.

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Cheers!

Kathleen Petrides

The Woobey Queen

Our Candles are the Cat's Meow!

http://www.fatcatcandleco.com