The competitive nature of today's world may be intimidating
to the small business owner.If a competitor cuts prices or
offers other incentives, you may feel tempted to do the same
thing in order to hold on to your customers, even if it puts the
stability of your business at risk.
Though cost is important to customers today, it is but one
component of a larger, more important attribute - value.If your
business provides it through service, responsiveness, and going
the "extra mile," your customers will respond with loyalty,
regardless of what your competition does.Provide something of
extra value so they will want to return.Ask what could I be
doing better?What does my competition do?
Building loyalty through value is something small business
owners have been good at for centuries because they are better
able to cultivate relationships with their customers.They focus
not just on selling to them, but also keeping them.
To foster customer loyalty, a small business needs a strategy
that keeps patrons coming back. It starts with basics that are
sometimes overlooked. Thanking customers for their business, for
example, goes a long way. However, try going beyond a few spoken
words. Write some thank you notes and letters. Make them
personal and sincere. Just let them know you appreciate their
business. It's also helpful to regularly share news about your
products or services, and the issues that affect their use.You
can do this on your Web site and a customer newsletter, via
email or customer addresses.Just make sure your customers
specifically request to be on your mailing list.
Creating value will help boost loyalty. Ask customers if
there is anything else you could be doing for them. Then, after
they tell you, implement it.When a customer leaves, you should
consider it unacceptable. Find out why it happened and then work
to prevent it from happening again.Remember, however, that one
of the fastest ways to lose customers is to make promises and
then lack any follow-through.
Remember, too, that your customers' needs are always
changing, and that they may find attributes or "extras" in a
competitor's business that put your service elements at a
disadvantage.Make sure all your customer-touch points - your
phones, Web site, store layout, etc. - operate with your
customer's needs in mind.Visiting competitors' locations and
sites may alert you to areas where you may be behind, and spark
ideas for making a good service or process even better.Also, it
is not a bad idea to even develop a rapport and relationship
with other business similar to your business and trade ideas
about new products and services.If your customers like what they
find at your business, they'll keep coming back for more.
Much has been written about the erosion of customer loyalty,
and how cost-conscious buyers are putting a higher priority on
price, particularly in down-turning economy.Fortunately, the
repeat customer is far from becoming an endangered species.But
in today's highly competitive environment, you need to do
everything possible to ensure that relationships with your
customers do not stop at the point-of-sale.
Start first by anticipating your customer's needs.Think ahead
to what the market will be demanding in the coming months and
determine what you can do better.Also, keep abreast of new
product and service trends that may influence your customers'
purchasing decisions.They may alert you to the need to modify
your offerings to respond to new regulatory requirements, or
changes in preferred styles and formats.
You can also gain insights into customer needs simply by
asking and, more importantly, listening.Too many businesses take
it upon themselves to advertise the next big thing without
considering whether their customers want it or not.And while
everybody wants a good price, they want a good value even
more.Listening to and acting on your customers' needs and
concerns will make a lasting impression on even the most
meticulous comparison shopper.
Learn more about customer loyalty and building repeat
business by contacting Silicon Valley SCORE, a nonprofit
organization of more than 60 volunteer business counselors who
provide free, confidential business counseling and training
workshops to new and existing business owners. Call now: 408
288-8479.
