The Art of Creating Customer Loyalty.
In a conversation with a business coach today we got around to talking about what it takes to impress a customer, so that they stay loyal. Research carried out by political parties in the US, have found that if you can get someone to vote for you three times in a row, then they will stay loyal for their lifetime.
What a powerful idea this is. When you adapt this idea to your business, imagine that if a customer buys from your store 3 times, they would be loyal to you for life. So know that you know this, the question becomes, how do you get a customer to purchase from you three times? To answer this question think more long term. What advantages would having a loyal customer give your business? Do you know how much it costs you to get a customer in the first place?
A chain of hairdressers in the UK went about it like this. When they opened a new salon, they would give customers a free haircut, together with complimentary champagne. This went on for around a month. Then they offered a half price cut which again lasted for about 8 weeks. You see the average women in the UK likes to revisit a hair salon every 8 weeks, so this was factored in to their marketing plan. For the next 8 weeks returning customers were given a further 10% discount, and now they were loyal.
They were used to the surroundings and atmosphere, they were used to the stylists and already had their favorite. They were used to the quality and the customer service. They even knew the best places to park and easiest routes to the salon!
These clever hairdressers knew what the American politicians knew. If we could only get someone to engage with us three times in a row, they would be loyal for life.
As with all forms of marketing, there is a cost to offering free hair cuts, or haircuts at discounted rates. You have to offset these costs against what it would have cost to advertise on the radio, local press, over and over again. Of course with your business you don't have to offer anything for free. Be creative and think if you were a customer, what kind of things would tempt you to give your business a try.
Just remember the story of the £1,600 toilet!
A celebrity hairdresser in London moved to a very upmarket address, paid a fortune to have the salon fitted out, everything was perfect. Well almost. On a visit there I asked to use the toilet, unfortunately it wasn't very clean. I told the owner my concerns and he said he couldn't afford a cleaner, as he had spent so much on the refit. I suggested he should do it himself. He said by the time we close I am too tired and I just want to go home.
The point to this story is you can spend thousands on refitting your business, moving to a swanky address, even spend on getting those clients to come to you three times in a row. Then one day a customer asks to use your toilet and all of a sudden, great service, free champagne, free haircuts, they all mean nothing. All because one little thing let you down, a dirty toilet.
We later calculated that one customer who stayed away because of that toilet would lose the business around £1,600 a year. Please ensure that every aspect of your business is up to the closest scrutiny of your customers.
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About the author:
Duncan Malloch is an entrepreneur from the UK with specialism’s in online marketing, website design and search engine optimization. If you are looking for a one stop shop to promote your business online, visit the PWP Web design website by CLICKING HERE. Thank you
Interesting story I will remember the bit about the toilet
ReplyDeleteKeeping a customer is easier than trying to find new ones all the time. After a carpet clean we always leave a bottle of stain remover with our company details on. Works better than a business card
ReplyDelete