What makes a loyalty customer? You the business owner do… you who manages your business in a way that makes your customer the main focus of your efforts… with perhaps the exception of your focus on staff who actually provide that high level of service.
Why are Loyal Customers such an asset to your business? Not only do they become a regular source of repeat business, but they also encourage their friends and others to become your customers as well. That’s all no-cost marketing for you, also known as word-of-mouth promotion.
Get into the mind of your customer
A loyal customer recognises the value of what you do or provide for them to meet their needs or solve their problems in your field. Generally it’s not the bland statements carelessly thrown around of providing “Service, Price and Quality”…
Research has shown that what customers like, and what brings them back to your business time and again, is a consistent level of (preferably high) performance with a predictable experience at each visit.
The closer your service or product is to the actual person or their intimate surroundings, the more important it is that your customer receives the service they expect. If you have attended a regular body service… hairdresser, manicurist, podiatrist, even a dentist… and each visit results in a different way of attending to you, it can be quite unsettling.
Even visits to motels can disappoint! Your first visit is enjoyable with some extras included, but your following visits see some or none of the extras, and even some of the basics come and go. What message does this give you… that you are not appreciated, and it’s too much bother for the owner to provide a consistently good standard of service.
How the Pareto Principle affects your business
The business that extends loyalty to its customers will as a general rule find that their loyalty is reciprocated by discerning and principled customers. These loyal (and profitable) customers then make up the Pareto Principle (80/20) 20% of your customers who do and should receive the most attention and effort to nurture their further custom.
When customers talk… do you listen?
Another benefit of developing and nurturing loyalty customers is that they will often be prepared to give you honest answers and input to your business regarding performance fluctuations and improvements. Such comments are the most valuable you can receive, because for a customer to go to those lengths it means they care about your success… almost surrogate owners!
Never reject any loyal customer who is prepared to speak to you about such matters… or they will never offer again. Treat them as the valuable asset they indeed are… if you can’t appreciate that you should probably not be a business owner!