In today’s competitive world, it’s imperative to create and/or sustain a valid customer loyalty program and communicate the importance of client retention to your staff.

7 Steps to Customer Loyalty
1. Examine why customers leave
2. Review why customers should stay
3. Match your loyalty programs to your customers
4. Be realistic - be consistent
5. Select two loyalty programs
6. Keep your word
7. Write your success program.

Step 1. Examine why customers leave

A well known loyalty expert discovered that up to 70% of customers do not
return to your operation – due to no special reason.

This highlights the magnitude of the loyalty issue. 70% of your customers are NOT leaving due to no reason! They do not return because they were either not made to feel special, welcome or appreciated during their first visits.

Reward their patronage and you avoid the high costs of attracting new patrons.

Step 2. Review Why Customers Should Stay

To take advantage of your sales position in the market, and maximize your chosen loyalty program(s) you need to determine what makes your product/service special. Ask yourself the following questions:

How do you define value for your product or service?
What is it that your product or service delivers better than anyone else?
How would past customers describe their experiences in dealing with your firm?

Step 3. Match Your Loyalty Programs to Your Customers

Before you select a loyalty program, think about your existing best clients or potential clients. Based on your knowledge of their familiarity with your firm, their hobbies, their current perception of your “customer care,” what program would impress them? What program would provide a “surprise” or a sense of “connectedness” to your firm? Are your customers
early adaptors or followers?

It is also important to recognize where you are in your firm and product/service life cycle. A more mature firm may be facing increased competition from newcomers – maybe large chains – and is seeking to remind customers of the “value” of doing business with them. A young company must seek to prove themselves to their new customers, and overcome customers’ fears of “trying out” the new guy.

�� Example:. A young firm might highlight FREE TRIAL or MONEY BACK GUARANTEE more aggressively than a mature one.

�� Example: A mature firm might employ an aggressive reward program for their oldest/most frequent customers – a gift or discount which is coded to their phone number or name in their register/invoice database.

�� Example: If you know customers already feel overloaded with data, don’t send them e-mail advertisement thinking it will make them feel warm and fuzzy. A simple postcard might be better.

Bottom line, your task is to match your brand with your loyalty and customer care programs.

Step 4. Be Realistic – Be Consistent

We have heard from some attendees that finding the time to implement, create, and sustain the customer care ideas they hear at our seminars is difficult. Do you feel this way? It is okay to feel overwhelmed by the complexity of running a business. Perhaps you’re not a staff of one – but only two or three. Everyone feels overburdened by the daily tasking. Take a breath. Running a business is hard.

We simply suggest you run to your customers – rather than run for them.

How? From the list included in Step 5 of possible customer loyalty programs, SELECT ONLY TWO. And select TWO that fit your time schedule, your customer’s implied or demonstrated preference for news or care, your financial capability, and your personal ability
to SUSTAIN.

After six months of successfully sustaining your chosen loyalty programs, consider adding another or augmenting the scope of the program you selected.

One or two consistent customer care programs will always result in greater return than several programs which start, stop, or are poorly executed.

Select TWO of the following programs:

Quarterly Thank you card – Just Because
Thank you cards after every order or service
Client personal events cards (birthday, anniversary, etc)
Client personal events gifts (gift baskets, wine, gift certificate to their favorite store, etc)
Unique Holiday Cards (everyone sends a Christmas card, make yours unique!)
Send a special gift to your top clients

Write a newsletter (monthly or quarterly)
Create a customer satisfaction survey
Create a client preference database (add ticklers if you know about an upcoming need/preference i.e., new fall suits)

Step 6. Keep Your Word

Loyalty programs are based on augmenting your clients’ perception of your commitment to their satisfaction and needs. Ultimately, this boils down to keeping your “word.” Your firmmust honor its stated or implied promise of:
Quality
Timeliness of service/shipping
Rain checks
In-stock items
No-hassle returns
Pricing, (i.e special promotions, etc.)
Guarantees
Warranties
Product/service price quotes
Return of calls/inquiries

Step 7. Write Your Success

Write two sample customer care policies for your firm. Consider writing (or re-writing, reviewing) all your policies within the next month. Assign a policy statement to a staff member to help advance this process and make it more employee-inclusive. Make your statements:

Brief
Do-able
Visible

Customer Returns: (Sample)
“We accept returns on unopened or opened merchandise except for swimsuits within six months of purchase. No questions asked. We provide a cash refund for returns with receipt, and store script for returns of store merchandise without receipt.”

Client Inquiries/Quote Requests: (Sample)
“We will return your call within 24 hours or provide you with a coupon for 5% discount on your next purchase.”
PNM Small Business Workshop 6

“Excellence is an art won by training and habituation. We do not act rightly because we have virtue or excellence, but we rather have those because we have acted rightly. We are what we repeatedly do. Excellence then is not an act, but a habit.”
 --Aristotle

Please contact us at 1-888-602-GURU for a customized Customer Loyalty program for your business