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72 E L EC TR I C AL CONNEC T I ON
SUMME R 20 1 6
CUSTOMER LOYALTY
W
hat is customer loyalty?
Officially, loyalty is “a
strong feeling of support or
allegiance”. In business it means more
than that (or we would like it to) and we
hope that the loyal ‘feeling’ transcends
to behaviour. As a supplier you would
welcome loyalty for several reasons – it
leads to repeat business, it saves you
the time by avoiding having to find new
customers to fill the gap and it usually
means that a customer will refer you to
others. I’m sure many businesses are
proud to say they have loyal customers
and you want that to continue, right?
However, you may just need to look
more carefully at what is motivating your
customers to be loyal.
You may think it’s the great service you
provide, the relationship you have with
that customer or your effective marketing
campaign but there are other reasons that
make customers consistently choose you
and some of them aren’t about being loyal.
It may be that it is going to take too much
time and resources for your customers to
change suppliers. It may be that you just
offer the lowest price. Or it could be that
the customer has a great rapport with
one of your employees.
These other reasons mean that your
‘loyal’ relationship with your customer
can at any time be in jeopardy. Another
supplier may offer something better
and provide an easy way for you to
switch suppliers (this is very common
in the insurance and energy industries,
to name a few). If it’s low price and a
supplier undercuts you, then you have lost
that customer. Or what if that favoured
employee leaves? The customer may go
with them to their next role.
Why am I telling you all this? To reinforce
that while you may have loyal customers
you cannot afford to rest on your laurels.
Below are some tips on how to gain and
maintain a loyal customer base and I hope
you find them helpful.
GAININGALOYALCUSTOMER
TIP 1: PROVIDE AMAZING CUSTOMER
SERVICE
Not average, not expected, but
beyond expectations. Go the extra mile,
do something different, be memorable.
I recall hiring a tradie who completely
cleaned up the area he worked in after
he finished the job. My experience has
shown that doesn’t happen often.
TIP 2: BE KNOWLEDGEABLE
Know what is happening in the
industry, what clients are looking for,
keep up-to-date with market trends,
what is popular now and anticipate your
customers’ needs.
TIP 3: EDUCATION AND AWARENESS
Marketing is essential to anyone in
business, whether you are a one-home-
a-year builder or a major developer. If
customers aren’t aware of what you
do, especially what you do better than
others, then how are they expected to
choose your company? Don’t be afraid
to promote your successes or explain
new ideas. Added value advice is a
big driver in not only demonstrating
that you know your stuff but engaging
people with your business.
TIP 4: COMMUNICATE
And I mean really communicate.
Listen and respond. Understand what
the customer wants, don’t just give
them an off the shelf solution. Take
the time to understand their dynamics
– family, retirement, is this their
first or second home, what have
they liked or not liked about previous
homes they have lived in and so on.
Then come up with a solution that
really meets their needs.
CECELIAHADDAD
EXPLAINS
HOW TO GAIN CUSTOMER
LOYALTY, AND THEN MAINTAIN
IT ONCE IT HAS BEEN EARNED.
BUSINESS PROMOTION