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Remember trading stamps?
If you're over 40, chances are you will. Every
time you shopped at a participating grocery store
or gas station they gave you stamps to paste into
a book. When you'd accumulated enough stamps,
you could cash them in for "free" gifts.
These stamps were one of
the first loyalty programs. They kept customers
loyal to a particular product or merchant because
they offered an incentive that encouraged the
customer to keep coming back - and spend more
money.
While trading stamps are
a thing of the past, a wide range of industries
still use loyalty programs to establish long-term
relationships with their customers. By far the
most successful and well known is the frequent
flyer program.
On the surface, frequent
flyer programs appear to be all about rewarding
customers with free flights just because they
choose to fly with a particular airline - the
more miles you fly the more free miles you get.
But, if you asked the airlines who really benefits
from these programs, chances are you'd hear a
resounding, "We do." Ask them to explain,
and they'll likely tell you that frequent flyer
programs allow them to collect data on individual
customers, help them tailor their mailings and
special offers to the customer's specific needs,
allow them to promote higher fares, and ultimately
increase their sales.
But, as popular as frequent
flyer programs have become they only work if the
service offered by the airline is good enough
to earn the customer's trust. And that means not
only offering a quality flying experience but
great customer service and on-going communication.
For smaller businesses,
the benefits of establishing a loyalty program
are no different to those enjoyed by the major
airlines. And equally, the program's success depends
on first establishing the three most important
elements of building that loyalty:
1. Treat your customer's
right, and they'll be yours for life.
Your customers will not
only judge your company by the quality of your
product, but also by the level of service you
offer. Offer one without the other and you may
as well give up now.
Great customer service includes,
among other things:
Credibility: Your customers
should be able to trust you. No one wants to be
on the alert for the small print or hidden charges.
They want to know that your company can be trusted
and has their best interests at heart.
Flexibility: Never use the
words, "I'm sorry but it's not our policy."
Always solve your customer's problems, even if
it means losing the sale. There's nothing worse
for a customer than a company that will not go
out of their way to accommodate their needs.
On-time Deliveries: If you've
ever ordered a product and been told that the
delivery time is 6-8 weeks, you'll understand
the frustration a customer experiences. Unless
the product is out of stock, or is an international
delivery, there's no earthly reason why a product
should take 6-8 weeks to deliver. Similarly, if
you promise a certain delivery time, you must
abide by it. If you say the product will be shipped
within 72 hours, then ship it within 72 hours.
If for some reason you find you can't meet the
delivery time, notify the customer and give them
the option to cancel their order.
Accurate Billing: We all
know mistakes happen. But when you make a billing
error or you overcharge, you immediately lose
credibility. Add to that the time is takes for
a customer to contact you to complain or get you
to adjust the bill, and you may well have lost
a future sale - and the potential sales of friends
and family they've complained to.
Hassle-free refunds: We've
all been there. For some reason we change our
minds about a product, or it doesn't work properly,
or it's not quite what we expected. And we want
our money back. Make sure your customers know
this is an easy process, up front.
2. Obtain Customer Information
If you want your loyalty
program to succeed you must obtain background
information from your customers. A program that
only requires a name, address, and proofs of purchase
isn't building a long-term knowledgeable relationship
with them. And it makes sense that a customer
who will take the time to complete an enrollment
form is going to be more interested in the product
than a casual purchaser. When designing your enrollment
form make sure you get information on product
usage, purchasing habits, attitudes etc. That
way you can tailor your products and services
to your customer's specific needs. And build a
database of customers who actually want a long-term
relationship with your company.
3. Keep Communicating
One of the easiest ways
to keep customers loyal is to establish on going
communication. This can be in the form of emails
promoting special offers, letters announcing new
products, electronic or print newsletters or even
offering educational materials. Another good way
of continuing communication is to send them something
useful with your company name on it. These simple,
inexpensive gifts keep your name in front of a
customer, and help to keep them loyal.
Need some help thinking
up a loyalty program for your business? Here are
some suggestions.
Gift certificates: Offer your customers a gift
certificate when they spend a certain amount of
money. For example, if they buy $200 worth of
goods during a six-month period offer them a $25
gift certificate.
Offer point programs: Give your customers points
for every $10 or so they spend. When they've acquired
a certain amount of points they can exchange them
for selected goods or services.
Free Shipping: This incentive is a sure-fire winner
for mail order and online companies. Offer free
shipping on orders over a certain amount or on
future orders.
Communications: Newsletters, pamphlets, direct
mailings, postcards, magazines, white papers etc.
All these can be used to increase customer loyalty.
They don't need to include a special offer or
discount, but it will help.
Properly implemented
loyalty programs are a long-term marketing strategy
that take a lot of work and commitment. But, getting
new customers takes a lot of work too. So, it
makes sense to do everything you can to make sure
that every one of those customers keeps coming
back time and time again, and recommends you to
others.
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About the Author:
Julia is an independent copywriter and consultant
specializing in advertising, search engine optimization
and search engine marketing services. To learn
more about how Julia can help boost your company's
profits visit her site at www.juliahyde.com. You
may also like to sign up for Marketing Works!
Julia's monthly ezine. Visit www.juliahyde.com/form.html
to sign up or email Julia at mailto:info
for details.
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