It is always said that it is far easier and cheaper to keep and look after an existing customer than try to get new ones and this is certainly true in most cases. Many businesses pride themselves on the amount of repeat business they get, but how loyal are your repeat customers?
There is a big difference between someone who is a repeat customer and someone who is loyal. A loyal customer or client will stay with you despite the fact that you are not the cheapest, don’t necessarily have the better product or service or the fastest delivery.
What makes a customer loyal?
It’s going the extra mile, it’s understanding what he or she needs and maybe even pre-empting those needs. It’s certainly being proactive and involves developing a relationship on a personal level. This is what builds customer / client loyalty.
We have already discussed the race to the bottom The Race To The Bottom and whilst in the short run this may well ensure repeat business it will not bring about customer loyalty. The customer who wants the cheapest will go wherever they can find it and that will never be you all the time.
Effective businesses spend time developing long term customer loyalty and it pays dividends when times get tough. What will you do tomorrow to help build loyalty?
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