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Seven Tips for Building Customer Loyalty

Treat returning customers right and they'll return the favor.

Loyal customers can be an important driver of sustainable business growth. They're usually much less price-sensitive, can be nearly immune to competitive entreaties, and can become a powerful marketing arm, going out of their way to promote and defend your company online and off -- for free.

If you're looking for ways to foster greater customer loyalty, consider these tips.

1. Anticipate customer wishes. When a customer's need is met before it has been expressed, it sends the message that you care about the customer as an individual. It doesn't require telepathic ability, just paying attention and knowing your customers.

It's well worth the effort. The cared-for feeling a customer gets when her wishes are anticipated is where you can generate the fierce loyalty.

For example: Instead of putting up one of those generic signs saying "If our restrooms need attention, please notify the staff," Charlie Trotter's famed restaurant in Chicago long ago decided on a proactive system: They themselves discreetly check the towels and soaps after every use, thus never leaving the next guest's experience at the whim of the last, nor ever putting a guest in the awkward position of having to ask for supplies or maintenance.

2. Hire with patience. In an organization aiming for superb service, a single disagreeable or unresponsive team member can erode customer loyalty and team morale. That's why it can be better to leave a position unfilled, rather than rushing to hire someone unsuitable. More broadly, customer service excellence is most fully achieved when a business owner becomes expert at recruiting and training service personnel.

3. Develop a customer-service vocabulary. Create and rehearse a list of vocabulary words and expressions that fit your brand perfectly. Cut out all off-brand language.

For example, the expression "no worries" may sound fine from a clerk at a Portland audio equipment store, but not from a salesperson at Cartier in Milan.

What's more, search out and replace any vocabulary words that could bruise customer feelings. For instance, avoid telling a customer: "You owe us." Try instead: "Our records seem to show a balance. . ." Employees of some successful companies carry pocket-sized cards with handy reminders of recommended and discouraged phrases to use in a variety of common scenarios.

4. Dedicate yourself to acknowledging each returning customer. Whatever your business and its size, get to know each customer as well as a beloved bartender, doorman, or hairstylist would. For example, the kind who would know each customer's preferences, the name of her pet, when she was in last and other details.

Computer-assisted client-tracking systems -- and an attentive staff -- can help create that same "at home" feeling in your customers -- regardless of the size and price point of your business, and whether it's an online or bricks-and-mortar operation.

5. Make every hello and goodbye perfect. Psychological studies demonstrate that customers remember the first and last minutes of a service encounter much more vividly -- and for much longer -- than all the rest. The first and final elements of your customer interactions should be particularly well-engineered, because they are going to stick in the customer's memory.

6. Speed up your service. Modern customers expect speedier service than did any generation before them. Not only speedier than their parents expected, but even than they themselves expected last year. In the age of iPhones and Amazon.com, you may as well not deliver your product or service if you're going to deliver it late.

7. Show your personality. When customers choose to interact with a person at your company, they want the transaction to be, well, human -- even in an online interaction.

For example, why send emails to customers from a Please-do-not-reply-to-this address? Instead, if possible, invite recipients, even of your mass emails, to respond directly -- and, of course, make sure someone answers those replies when they come.

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Micah Solomon is the co-author with Leonardo Inghilleri of Exceptional Service, Exceptional Profit: The Secrets of Building a Five-Star Customer Service Organization and a public speaker based in the Philadelphia area. 

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Comments:

I agree, there are many old school thinkers that treat customers as just another small aspect - and as you put it, another widget to the assembly line.  I work for customer services of a hosting company, and part of the job is to give feedback to management on what the customers have complained about most, and what we personally think could be used to improve our own management.  Ali @ http://iClickster.com

Great article on tips to increase customer loyalty. Too many companies employ robotic thinking and acting sales and customer service associates who unfortunately consider the customer just another widget in an assembly line instead of person, with personal preferences, like and dislikes. Richard Shapiro, TCFCR

Hi Allison, I believe in customer service 150%. I practice this everyday and try to get my employees to do the same. I always try to put my self in the customer's place to see how I would need the assistance and give it back to them. Visit us on www.sculpturebarbados.com; facebook sculpturebarbados@gmail.com or on twitter at sculpturebgi

Learn how to assess and build customer loyalty and better yet, create Brand Fans and customer Advocates who proactively share positive word-of-mouth for free. This article on MarketingZone.com explains how... http://www.marketingzone.com/how/increase-sales/customer-loyalty

Good tips. I've been working at manufacturing companies as Customer serivce other than service industries. But most of them are still applicable and helpful. It's very important to be proactive, patient, creative, knowledgeable and punctual to impress your customer and foster loyalty.

This is the best customer relationship article I have ever seen: so articulating and revealing and it's actually straight to the point. 10 out of 10; great job. http://www.ineedabusinesstoday.com

Great informaiton

Great article, but I can't believe you don't prominently mention social media! For example, using Twitter to build a long-term relationship with your best customers (think coupons, or insider deals...). I teach social media marketing online and emphasize it's not either / or - it's both! JM Internet Group - http://www.jm-seo.org/

Anyone looking to improve their customer service and build customer loyalty, should read the book Raving Fans. Just finished it and its a great reminder of why customer service is so important and how much of a difference great customer service makes! Don't give your customers what they want, exceed their expectations. Find out what your customers want and deliver plus one!

Some great advice, especially the point about using the final "goodbye" as a marketing tactic...yes, they remember the "little things." Make ambassadors out of your customers...they will return and spread the word, leaving you with no need to coupon or excessively advertise. Tom Kelley Concept Branding Group

This is a nice article Micah, I left a video response here http://www.guaranteedprofit.com/blog/customer-loyal-strategy/

This is great advice in general for any business, but what about customer service on social media? There is a huge trend for companies like Dominoes and Toyota to move a lot of their customer service efforts to Facebook and Twitter, and they are answering questions and comments there - publicly. I think this article is great, but it needs to add a bullet point called, "listen and engage with your customers". Why not, it's so easy!

This is great advice in general for any business, but what about customer service on social media? There is a huge trend for companies like Dominoes and Toyota to move a lot of their customer service efforts to Facebook and Twitter, and they are answering questions and comments there - publicly. I think this article is great, but it needs to add a bullet point called, "listen and engage with your customers". Why not, it's so easy! Gwen Woltz Wahine Media, http://wahinemedia.com

Micah, Great piece. We believe that in addition to your great tips, you also need to engage your customers and reward them for their loyalty and referrals. Because the most loyal customers are also the ones that drive the most referrals to you. We provide a turn-key solution that drivers and measures the referrals in a natural fashion. Check it out http://punchh.com and a small vid at http://punchh.com/?vid Thanks, Jitendra

thanks for the tips...we work hard at great customer service. Customer service seems to be that one area where a lot of companies skip out on, for some odd reason.

Great tips! I think you did a great job keeping this generic enough to apply to most companies. I always try to make all my clients feel special, but there are definitely some things I can be doing better based on these points. I'm in a high-value service industry, not retail, but it is just as important to put the systems in place to make sure your clients are happy. Cathy Iconis http://www.IconisGroup.com

I'd like to recommend iCalledU (http://www.icalledu.com) as an additional tool for customer management. It's a phone messages managing solution for small businesses aimed at improving customer service.

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