Customer Loyalty Programs - Part 1 Effective Communication

This is Part 1 of a series on customer loyalty and how it affects the bottom line.  If you're responsible for managing the customer loyalty program for your organization or if you're thinking of implementing a program, this is information you'll want to review.

It's amazing how many customers are lost due to inactivity or indifference. One study showed that 7 out of 10 customers are lost to competition because the competitor made them feel more appreciated.  I can't think of any thriving business that would want to lose 70% of it's customers.  So customer loyalty is crucial to any successful business. Yet is something that many companies have taken forgranted.

What are the elements of a successful customer loyalty program, otherwise known as customer retention or customer relations programs?  It's a given that if you don't talk to your customers, your competition will. Effective communication is key to maintaining customer satisfaction and loyalty so it's the first area we will look at in this series.

It's also a given that if you fail to plan, you plan to fail.  So we'll start by saying that having a plan is the most important element of any program. These ideas won't work unless you can detemine how you're doing now, and set reasonable, measurable goals with an action plan to achieve them.

Whether its by direct mail, phone, fax, email, or social media, or all of the above, create a plan for regular, two way communication with customers as a basis for your customer retention program.  Regular, two way communication involves obtaining feedback from your customers and providing regular outgoing communication that says, we appreciate your business and how can we serve you in the future.  This element doesn't have to be anything elaborate. It can include simple things like newsletters, cards, surveys, coupons, gift certificates etc.

Items like coupons, gift certificates, and discounts show appreciation and give customers a reason to return to your organization.  Surveys allow for regular feedback on how you're doing in terms of providing the right products and services to meet the needs of your customers.

Customer communication occurs every day through your sales force and customer support team.  Do they have items that they can use to enhance the service they provide to customers?  What about the area of your company that deals with problem resolution and/or troubleshooting?  How are they communicating with customers?  Are they going the extra mile to be helpful or are they maintaining status quo? Helping your employees improve their communication on the phone or in person, will go a long way to making your customers feel appreciated.

When sending out invoices, catalogs, direct mail and other printed materials, coupons, discounts, surveys, etc and other lightweight items like custom printed magnets, calendar cards, and stickers that fit well in #10 envelopes. These items provide an excellent way to send  helpful information like reminders or greetings.  Include custom printed pens, sticky notes, reminders on magnets, cups, magnet frames, picture frames, t-shirts, key tags and other items in the materials left behind on in person sales calls.

Provide information in employee work areas like custom references and job aids to help employees who communicate by phone.  Place important informtion in areas where they can be seen and used on a daily basis.

The end of the year presents an excellent opportunity to reach out to customers that you have lost touch with during the year. For end of year gift ideas, custom printed calendars make excellent leave behinds during the holidays and at the end of the year, because they are relatively inexpensive, have high visibility and they're appreciated by everyone who receives them. Most of all they keep your name in front of customers all year long. Coupons and other helpful information can be added to wall calendars as well.

For more information on customer retention view this video, Enhance Your Customer Retention Program.