Author: Shep Hyken

Studies have shown that it is much more expensive to attract a new customer to a business than to keep an existing one. So, what can we do to build customer loyalty...to get that customer to come back again and again? Here are six universal points that will apply to any type of business....

Dr. Ted Levitt, senior professor at Harvard Business School says that the function of every business is to get and keep customers. Consequently, it is also the function of every employee of every business to do the same. Knowing how to keep existing customers happy is key to a company's continued success.

Studies have also proven that it is much more expensive to attract a new customer to a business than to keep an existing one.

So, what can we do to build customer loyalty -- to get that customer to come back again and again? Here are six universal points that will apply to any type of business.

Don't ever forget to say THANKS! It can be face to face, over the phone or via written thank you notes. Customers like to feel appreciated. Recently I bought some clothes from a local retail store. Just a few days later I opened my mail and found a thank you note from my salesman. Was I impressed? You bet. Will I go back? You bet. And, when I do, I will be looking for my salesman.

Find out if you are doing a good job, and if there are problems react quickly. By the way, your customers will not likely tell you if there are problems. Numerous studies have shown that complaining customers don't complain. TARP (Technical Assistance Research Program) was commissioned by the White House Office of Consumer Affairs to survey customer satisfaction. They found that an average business only hears from 4% of unhappy customers. The other 96% don't complain -- at least not to the places they did business. While the study was conducted a number of years ago, current independent studies still show similar findings. Your ultimate goal should be to try and find any problems before the customer complains. The best way is for you to simply ask how you are doing.

Make sure the customer knows they made the right decision to do business with you. Educate and reinforce that they have made a good choice. If you do something different than the competition, make sure the customer knows about it. I remember buying meat from a grocery store. The butcher proudly held up the steak he was selling me and said, "Look at that! Is that a beautiful piece of meat or what? Did you know that we trim the fat around the steak to just 1/8 of an inch. You won't find that at the competition! Thanks for shopping with us." These competitive differences need to be emphasized. It is your opportunity to stand out.

Guarantee your products and/or services. Personally, stand behind everything you do. A customer doesn't do business with a company. They do business with the people who represent the company. And, make sure the customer knows you mean it. If there is a problem, don't just push it off to someone else, better referred to as the It's Not My Department reaction. If a customer has a problem, and you are the person that received it, it is your responsibility to see it through. You may not make the final decision, but you are there at the end when it is made.

Recognize that there may be others in the "buying process" that should be made to feel appreciated. These people might also be involved in the buying process, such as an assistant, a secretary or even a committee, but may not be the person or people you are dealing with day to day. Even if the assistant or secretary is not involved in the buying decision, they are still part of the team. Don't forget to show appreciation for these people as well.

Create a demanding customer. Now, here is an interesting concept! Creating a demanding customer means that if your customer were to go to your competition, they would not just expect, but demand, the same level of service that they get from you. Anything less from the competition reinforces that the customer made the right choice to do business with you. In other words, you have spoiled your customer. What may be standard for you, is better than the competition. The competition will find your customer to be not just demanding, but perhaps a bit unreasonable.

So there you have it. Six ways for building customer loyalty. Work toward implementing these and you will find a higher success rate in keeping your existing customers and creating MOMENTS OF MAGIC.

Copyright 2002 by Shep Hyken. Used with permission.