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PLUMBING CONNECTION
SUMMER 2016
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, if I can throw a spanner in the works (excuse the
pun), as a business 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 (but not you or your company).
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.
GAINING A LOYAL CUSTOMER
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.
MAINTAINING A LOYAL CUSTOMER
TIP 1:
BUILD LOYAL EMPLOYEES
How? By training and upskilling them, giving them a real
CECELIA HADDAD
EXPLAINS HOW TO GAIN CUSTOMER LOYALTY, AND THEN MAINTAIN IT ONCE IT HAS BEEN EARNED.
While you may have loyal customers you cannot afford to
rest on your laurels.
BUSINESS PROMOTION
CECELIA HADDAD