PajMon Information Blog

Posts Tagged ‘customer loyalty concepts’

When times are tough & consumer confidence is low, customer loyalty concepts may well be a saving grace.

When sales of your products or services are not what they should be and the usual marketing methods aren’t working as well as they have done in the past, your bottom line will surely be hurting.

Couple this up with falling customer loyalty and you could be heading for tough times..
We’ve all heard of the Pareto Principle, it’s the one that states 20% of your customers will account for 80% of your profits.

JUST 20%!!  –  scary… or… what!

So… How do we keep the top 20% wrapped in the ‘warm & fuzzies”?

Here’s how…

They need to feel loved by us.

Here’s a number of options to think about -

Make an effort & get to know your customers. Customer loyalty concepts are a waste of time until you do.

You absolutely must know what gives them a headache… what keeps them awake at night.
You can only do this by getting to know your top 20% customers so you know what products & services they require.

Only then can you to implement a customer loyalty program that compliments their wishes.

Conduct some marketing intelligence activities using tools like customer surveys, market research and customer feedback.

You can then use this information to nurture them on an ad hoc basis to further show how much you value them.

Customer Loyalty: Be Very Careful NOT To Abuse It

There’s an interesting article in the Harvard Business Review that’s worth reading. It questions current theories regarding customer retention and the link between company profits & customer loyalty.

Exceed Their Expectations at Every Single Opportunity

Shooting for a WOW facture every time you make a sale will ensure you get maximum benefit your customer loyalty concepts.

We all expect top customer service nowadays so we cannot expect our customers to be loyal if we’re supplying less than top service.

In particluar your top 20%.

You need to be providing proactive services that they don’t expect and you need to keep on doing it.

Prove beyond any doubt how important your customers are by valuing their opinion & input.

On a regular basis, ask them what they think about your business and the products & services that you provide.

Add value to your loyalty card program so it’s attarctive to your customers. Consider the Best Buy reward card that Best Buy department stores have implemented. A great nurturing model that works a treat.

I think I can say without fear of contradiction that the majority of us need an incentive of some kind to do something for someone that we do not know all that well.

You could offer your customers points for every purchase which they could redeem for cash or a discount. Another benefit of loyalty cards is they allow us to track purchases so we’re aware of the products that the top 20% customers purchase.

This alone will increase sales and your customers are rewarded for their loyalty… win / win.