How To Win Customer Loyalty for Your Local Business

by Mia Vallo on May 4, 2009

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It generally costs eight to ten times more to acquire new customers than to keep your existing customers. Needless to say, any business, no matter what size or location, must have a customer retention program. If you run a local business, don’t think that you can skip this because you don’t have a fancy CRM (Customer Relationship Management) software.

I’ve encountered several great local businesses that have won my loyalty as a customer. Simply put, they make me feel special.

Special Events
Hold events to let your customers know that you appreciate their business. My favorite day spa holds a monthly gathering for regular customers and their guests. We get our make ups done, massages, paraffin hand treatments and product samples, all for free. The result? I continue booking my bi-weekly appointments there.

Special Follow-Ups
Follow-up with your customers after they use your product, whether or not there is an issue. My favorite Thai restaurant always (yes, always) calls a few hours after they deliver my food to see if I’ve enjoyed my delicious meal. My vet calls the day after an appointment to make sure that my dog is doing fine. No wonder I put them on my speed dial and rave about them to my friends.

Special Offers
Offer special discounts to your customers just because. I was feeling a bit frumpy after I had a baby, so I went to a local designer jeans store to splurge. Not only were they willing to pay for my tailoring costs, but they also sent me a thank you note a few days later with an invitation to a private sale.

Special Knowledge
When you know your customers, you can anticipate what they need and personalize it for them. The minute I walk into my local coffee shop, the barista starts making my drink without having to ask me what I want.

Special Surprises
This next example is not from a local business, but it’s definitely worth mentioning. It happened almost 10 years ago and I still remember it because I was just so pleasantly surprised. I registered at TheKnot.com after I got engaged and I received a free wedding planning binder a few weeks later. Honestly, I forgot that I had registered on their website, but after getting the free planner, I obsessively visited their website several times a day.

Special Treatments (No Membership Required)
Most businesses these days have customer loyalty memberships, from frequent customer cards (buy ten cups of coffee and get your next one free) to membership discount cards at local supermarkets. So nothing new there, but your customers will even be more delighted if you give them special treatments without asking for their email, mailing address or birth date. Once, my auto shop washed my car at no extra cost because they thought I would enjoy driving a clean car (now, if only they fill up my car for free…). A hostess at a local restaurant surprised my daughter with a kid-friendly appetizer for free as we were waiting for our food to arrive.

Special Respect
Finally, give your customers the respect that they deserve. If they ask a question, give them the appropriate answer. If they complain about your service, listen to them and see how you can improve it. My handyman not only does a good job fixing things around the house, but he also shows up on time and finishes his projects on time. He also smiled and nodded when I asked,”would you mind going around the house instead of taking the shortcut through the kitchen while carrying that heavy thingymajiggy since I just scrubbed the kitchen floor?” I appreciate that he respects me, my time and my house, so I always refer him to my neighbors when they need a handyman.

These are simple examples that keep me coming back to those local stores. What will you do to make your customers feel special?

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  • Nice post Mia!

    Special follow ups and special respect are two of my favorites -- especially with all that's going on online these days. With comments, ratings, reviews and other innovative social media aspects of eCommerce, business owners have to be on their game at all times if they want to rise to the top and win over customers.

    I just read about a hair stylist that sent personalized thank you notes to all their customers -- talk about special follow ups!

    I recently wrote an article about impressing your customers, which included the trait of generosity (#19) as a powerful way of keeping customers returning for business -- this basic tactic is less about the numbers and more about the human connection between business owner and customer. Connect with your customers if you want them to return.

    For mroe about generosity and other ways to win customers, consider checking out the 21 Things that Impress a Customer Online:

    http://blog.dapeem.com/index.php/2009/06/24/21-...
  • jackie
    Great tips.. Yeah this is the right way of winning the customer's loyalty in our business..great post..
    wedding planning
  • Boontor
    Customers need to feel respected and loved for them to be more interested in your business. Treat them like you would your 'Mum'!
  • I used to work at Nordstrom in Seattle and we had clients in Alaska where there were no longer any Nordstrom retail stores. We packed up, and recreated a cosmetic department for them in a lodge in Ketchikan. It was lots of fun and the families loved it. We had had pre-orders months in advanced for double the products. Throughout the year I had customers calling specifically to reorder, and replenish until we returned the following year. The flagship store is the closest to Alaska. So they probably considered it a local deal.
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