Customer loyalty programs work big time for big companies but small business owners are often deterred from developing one because of worries about how much it would cost or how difficult it would be to organize and manage. As a matter of fact, the very same principles that keep customers coming back to big companies can be utilized to develop a small business scale loyalty program without a lot of cost and drama.

Make customers feel like ‘members’

Creating a ‘club’ that provides special incentives to members is one of the best ways to retain customers. This approach works because it is based on the primal human need to ‘belong’ to something - especially where belonging also makes us feel we are being treated as special.

Who gets to be a member? A customer loyalty program based on membership should convey a feeling of privilege for those selected so it can’t be open to all and sundry. Customers may qualify for membership either by purchasing their entrée or by dint of their past support and loyalty.

General Nutrition Centers, a specialty retailer of vitamins and supplements, offers a Gold Card membership program that provides discounts on products, personalized mailings and email on health related topics, product news and exclusive offers. GNC found that they could even use their program to actively iron out lows in their sales pattern by offering a special discount on sales made on Tuesday, traditionally their slowest sales day. continue

Surveys of customers can be very revealing, even indicating danger areas for your organization. This article summarizes findings from some recent surveys that show just what customers dislike the most about their interactions with businesses.

When they’re on the premises

There’s one thing that customers dislike more than anything else – employees who are busily conversing with each other and just ignore them. This is unforgivable and also very likely to cost the business a sale because the customer usually leaves and takes her business elsewhere. Whether the business is a retailer or a restaurant, customers intensely dislike being confronted by a salesperson who’s having a bad day and showing it. The customer’s perception of the business plummets and most never return, even after just one such experience.

Another real dislike is to be served by someone who’s chewing gum or eating something. It’s unattractive at best and reflects poorly on the business. Even breath mints should be sucked only while out of view of customers.

The use of industry jargon is viewed as being condescending and a means of trying to make the customer look stupid or uninformed. It intimidates all but the most knowledgeable of customers and should be avoided unless the customer has already asked a question using a particular ‘buzz phrase’.

Telephone troubles

Customers really dislike being put on hold during a call without being asked first – just telling them “Hold a minute please” and then transferring to the on-hold music is not the right way to handle it. The best way to deal with this situation is to ask the customer if they mind waiting for a few seconds while the other call is answered, then promise them that you’ll be back quickly. It’s also very much disliked when the person they have reached goes away to take another call and doesn’t return for several minutes.

Regardless of how polite the employee is when putting a customer on hold, it should only happen once. Going away repeatedly to take other calls is seen as rude and a sign that the customer is not valued by the business. Asking the customer to call back later “when we’re not so busy” is another definite turn-off. Instead, ask when it would be convenient for you to call the customer back, and then take down their contact details.

Even customers who start by telling you they have called to complain about something, or who are obviously irate and aggressive, don’t deserve to be hung up on – they are only going to be twice as irate when they call back to complain about that as well! One of the important things team members, particularly those who deal with customers on a regular basis, should be trained in is a telephone technique for how to handle difficult customers.

Customers also dislike the feeling that they’re being ‘screened’. If they ask to speak with the CEO and that person’s not available then they should be advised that the CEO is “with someone” or out of the office and then asked by the person taking the call if he/she can be of assistance. The worst thing to do is to launch into a series of questions that sounds like the customer’s being evaluated to see if they’re worthy of being put through to the person they’ve asked for.

No reply

And finally, a customer dislike that’s right out of the electronic age. So many people use the Internet for gathering information that it’s become a highly valuable sales support channel. Many websites offer a facility for submitting requests for information and are thereby making a promise to supply it. According to one study, nearly half of online companies either don’t reply at all or respond with incorrect or inappropriate information.

It’s up to you and your managers to be sure none of these customer-killers are happening in your place of business. Remember that only about ten percent of dissatisfied customers will ever complain to you – but they’ll tell everyone they know about why they’re unhappy with your business.

Information in this article is sourced from RAN ONE, Inc

Loyal customers have to be created. This can take some time and effort but the ROI can be immense. “Not only do loyal customers provide incredibly valuable referrals, they also generate word of mouth that simply can’t be bought through advertising,” says Roger Hallowell, assistant professor at Harvard Business School.

When a customer buys from you it’s a signal that you have something they want. They’ve responded to the value proposition you offer and there’s immediate potential to create a relationship with lasting value for both of you. How can you do this with the greatest possible number of customers?

Review your value proposition

Your value proposition must appeal to your customers to create and retain their loyalty. Their perceptions of value change, depending on factors such as the economy, fashion trends and even seasonal variations. Regularly review the value proposition you’re offering your customers and relate every element of it to enhancing the relationships you have. An ability and willingness to change is essential to having a marketable value proposition.

Study your customers

Every customer is unique; each will respond to a different set of approaches and satisfactions. You should study your customers closely. Talk to them and get to know them so you can deliver what it is they want. Learn to identify and cater for the customers with long term prospects and then work hard to satisfy their needs. You may find that you could serve them better by modifying your trading hours or by making payment of invoices possible over the Internet. If you really get to know them you’ll find out these things and be able to capitalize on the knowledge.

Create team loyalty

When the team members of a business feel genuine loyalty towards their employer they’re much more inclined to provide customers with personalized service that gets them back. It’s a feeling of familiarity that transmits itself from your people to the people they serve.

Don’t depend on ‘salesmanship’

Today’s customers recognize most sales techniques for what they are and are likely to be put off by them. They want to formulate their own opinions and not be told what they like or don’t like. Adopt a service approach; be ready to assist the customer in making decisions and provide answers to their questions. Treat them as individuals and make it easy for them to buy from you.

Anticipate and overcome problems

Work with your team to eliminate potential sources of customer dissatisfaction, and if you notice any signs that someone’s unhappy be proactive and leap in first with a solution. Make it really easy for them to tell you what’s wrong, and then resolve the issue as quickly as possible. When customers aren’t happy with your business they usually don’t complain to you – instead, they’ll complain to just about everyone else they know. Its better that they tell you first.

Information in this article is sourced from RAN ONE, Inc