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Traditions build customer loyalty

July 21, 2011 by Peggy Carlaw — VP, Impact Learning Systems

Over the weekend, I went on a trip to my favorite vacation spot: Family Camp. This is a little spot nestled in the forest of the Sierras right outside Yosemite. We sleep in tent cabins and eat in a dining hall. The trip consists of eating, sleeping, and reading. Maybe not everyone's definition of a favorite vacation, but it's definitely mine. As I was sitting in my beach chair, gazing at the river flowing by, I contemplated why I love this place so much. I had to be honest with myself and realize my description wouldn't sell more reservations.

What do sell are my experiences. I have been going to this camp for almost 20 years. The people that go have changed, the activities I participate in have changed, and the management has changed. The one constant has been the fond memories jumping off the rocks at Rainbow Pools, performing in the camp talent show, and winning candy bars at Bingo night. I can't wait to return.

Unfortunately, this year was different. On our drive home, my Mom and I discussed what changed: our loyalty. Before, my Mom and I were advocates for this vacation spot. They had been building customer loyalty over the years by rewarding the most zealous customers. In order to get a reservation, you would have to physically wait in line. People were so competitive; they would wait in line overnight to reserve their spot the next morning. They changed this process to a lottery. Anyone can put their name in no matter how interested they are in coming or not. They used to reward customer loyalty and they quickly took that away.

As the years go by, the camp becomes more run down. We keep going because of the memories we hold. At some point, maybe now, those memories won't make it worth going. So I ask, is building customer loyalty necessary? I say yes.

How Can You Build (and Retain) Customer Loyalty?

Build Trust

According to an article in Fast Company, customer loyalty comes down to trust. If you want to build a base of loyal clients, you need to "assume the best" in a sticky situation. Problems will arise, but focus on the positive and never blame the customer. When you agree to do something, follow through and "keep your promises." Don't follow through with your word and you can almost guarantee the loss of a loyal customer.

Create a Mission

If building customer loyalty is the goal, then make customer service part of the culture. If everyone in the organization knows service is a priority, then everyone will reinforce each other's behavior. Managers need to lead the way by setting a good example. Employees view managers as role models, so everyone needs to practice great customer service.

Offer Training

Employees need ongoing training. New hire training is great, but it shouldn't stop there. Companies need to develop an ongoing approach to learning. There is always room to improve and with technology evolving as it is, there is always something new to learn. Building customer loyalty is dependent on the skills of your employees. Empower your employees with training to constantly improve their skills.

Reward Customers

Repeat customers need special attention. According to an article in Inc. Magazine, "Feeling appreciated can be a powerful tool for maintaining customer spending and loyalty." If customers return, employees need to notice and acknowledge. If customers don't feel appreciated for their business, they will no longer be repeat customers.

Ask For Feedback

Make your customers part of the process. Customers who identify with the company feel more loyal to the company. Asking for feedback and actually using that feedback to make improvements will impress your clients. Companies that constantly strive to make improvements are impressive to customers and help build their loyalty.

Building customer loyalty can seem like a daunting task, but these tips and tricks will help in the process. Everyone is a customer at some point in their day so put yourself in the customer's shoes. What customer experiences have you had that left a favorable or not so favorable impression? How do you want to be treated? What builds your loyalty? Once you analyze what motivates you, you will have a clearer picture as to what building customer loyalty looks like.

About Peggy Carlaw

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