Customer Loyalty Isn’t What It’s Cracked Up To Be!

Posted by on April 5, 2011 4:47 am
Tags: , , , , , ,
Categories: C1A - Marketing

Small Business Marketing TrustThere was a time when you made your first sale you had a customer for life. That still happens but you have to work to keep your current customers and clients loyal.  Information is so readily available online it’s extremely easy for anyone, including your current customers, to search out and find better deals.

Attracting and retaining customers has always been a cornerstone of good business and it’s very interesting to see what has happened in our space in the past year. Local search engines, national deal sites and social media alike are all offering these incentives to customers.

It’s exciting to watch the local search industry integrate these new digital models and techniques while preserving its own core business – getting people the right information and listings wherever they live.

Source: SearchEngineLand.com

Don’t get the wrong idea. Many people shop by price but most people shop by value and quality. There is no need for you to compete on price when you implement a customer loyalty program that works.

It’s all about RFM.

No, that’s not some military term. It’s short for Recency, Frequency, and Monetary value (RFM). Technically it refers to how recent a customer purchased from you, how frequently she purchases, and how much she spends. If you take the same concept and apply it to customer loyalty you have a golden opportunity to keep your customers stuck to your offerings.

Here’s how.

Recency

Keep in touch with your customers often. Mail them, call them, send thank you notes, keep them informed. You can use almost any method available to do this. You can use email, post cards, letters, video, you name it. The idea is you want to stay in front of your customer or client as often as possible. You never know when she might stray or get the idea to price shop. So always build value and leave your customer or client better than when you found them.

Frequency

The more you communicate the better you will be. This is what gets people buying more often from you. The old saying, “Out of site, out of mind” holds true in this case. You want to always be in front of them giving value.

Monetary Value

This could translate into value for you and value for them. What do you bring to the table every time you communicate? Are you giving value. Are you demonstrating the value of your product or service? You should be. This is no different in the way I’m bring you valuable information daily on this blog. I’m building a relation ship with you. You’re getting to know me and eventually you may decide to work with me.

On the other hand you may already be one of my client’s who is reading this. And it’s my way to keep you informed on what’s happening. It might even spawn new thoughts around conversations we’ve had that will turn into massive profits for you.

It doesn’t take much to keep a customer or client loyal. You just need to communicate and put in the effort to communicate with them often and always bring and show value.

Enjoy and prosper,

Jay

PS- As I mentioned earlier in this article, thank you notes are a great way to show your appreciation. It’s also a way to prove to your customer or client that you’re not just another commodity based business. You value their patronage and you show it. Do you think your competitors are doing that? Probably not.

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