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J.D. Associates Retail POS Solutions Blog

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Does Customer Loyalty Create a Referral Engine?

  
  
  
  
Get back to fundamentals.  A satisfied customer is your best salesperson.
 
According to Incentive Central, "...Existing customers cost less to reach, cost less to sell, are less vulnerable to attacks from the competition, and buy more over the long term." You always need to be building your customer base, but not at the expense of forgetting those customers who've help make your retail business very successful. Since your best salesperson is your customer, how do you inspire them to talk about you?
  1. Develop a customer communication program.  There are lots of options.  An e-newsletter is quick, relatively easy to publish and able to be tracked for open rates.  You can use Constant Contact or JangoMail as your vehicle to send your e-communications. You can instantly see what articles/offers resonate with your customers by analyzing what they open, how many times they open it, and conversely, what they don't open. Through your e-newsletter remind your customers of your services and products. Communicate at least monthly and make them feel good about doing business with you.
  2. Create a Rewards for Referral program. This is an organized way of not only saying thank you to your customer for giving you a new customer referral but also staying top-of-mind for the next referral. Click here to see the J.D. Associates' Rewards for Referral program and get free Stonewall Kitchen products for 6 months! We continue to work it - to ensure it continues to work.
  3. Surprise marketing. Use the power of surprise to surprise.  Keep it fresh, make it different and you'll become REMARKable. I've heard about lots of ways business owners do this successfully. The following ideas have stuck with me since I first heard about them: I read about a female owner of a former Saturn dealership who gave a flower(s) to customers who bought a car. Or the business owner who gives lottery tickets to her best customers each month or when the jackpot reaches a certain amount.  Another retailer gift-wraps a goodie and puts it in their bags of purchases to open on their way home. A local retailer used to give a trendy soft, fizzy drink to those customers who come in the store. Finally, chocolates!
  4. Feedback is critical.  Responding to the feedback is even more critical. Build on your successes but be prepared to address your weaknesses/complaints.  You can turn the feedback into the basis of your "recovery strategy.' This can be your way of making amends and correcting something that has gone wrong:  Service?  Attitude? Product quality?
 
What have you done lately to retain your customers?
 
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Comments

Debra, 
Some great tips. I especially like the surprise angle. Very cool. You could do this on anniversary dates too, like 1 year after the buy a car, send them another bunch of flowers or tickets. We in the service business tend to forget these important b2b strategies for customer retention, focusing 100% on new sales. Thanks.
Posted @ Tuesday, April 13, 2010 3:26 PM by John McTigue
John, 
 
We all love surprises. If retailers did 'surprise marketing' more often, it would make them REMARKable and we'd be talking about it, driving more traffic to their site and store. Debra
Posted @ Wednesday, April 14, 2010 8:14 AM by Debra Neville
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