 (iv) Communication A common way to increase loyalty is to communicate with your customers, to make them feel appreciated without the pressure of being sold to. A Christmas card, friendly telephone call or letter to check that everything is ok with the products you sold them, can show the customer how important you feel them to be. Most people do not like receiving junk mail or telephone calls, but if you show a genuine interest in the satisfaction of the customer without trying to sell, they will usually feel much more appreciated. This is more important in businesses where long-term or expensive purchases are made.
With business-to-business customers this kind of communication can be especially important, regular contact with the staff of your customers helps to show that you regard their custom and satisfaction as important.
E.g.
“Dear Mr Smith,
Two months ago you purchased a TV from our store. We would like to thank you for your custom, and take this opportunity to check that everything is satisfactory with the set. If for any reason you have difficulty with your purchase, call us on 01234 456789 and we will do our best to help.”
(v) Days Out
There are few better ways to show a customer how much you appreciate their business than to take them on a day out (E.g.: Bowling, Football Matches etc…).
Days out are fairly expensive, but not only do they show the customer how much you value them, they also allow you to spend time communicating. This can increase customer loyalty as well as provide opportunities for new sales in the future.
Days out are most effective with business-to-business customers, where a personal relationship is built up, although vouchers for public customers can have a similar effect.
Remember that in most businesses 80% of sales come from just 20% of customers, the cost of a day trip for these 20% will almost certainly be insignificant compared to the income that the loyal customer brings, and may even help increase future sales as well as building the business relationship.
(vi) Branding
Although good branding does not have any direct effect on customer loyalty, it is commonly stated that customers are more loyal to a business with a strong brand than an identical business without one.
One of the possible reasons for this is that a good brand is often associated with trust, which is a key part of forming loyalty to a business.
Branding alone will not bring customer loyalty, but when combined with other factors such as good service and value for money it can help increase loyalty further.
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