Join Jill Griffin for an in-depth discussion in this video The importance of loyalty, part of Building Customer Loyalty.
The success of your business depends on customer loyalty. When I launched my consulting firm in 1988 as a solo entrepreneur, my trusted friend, Scott, a home renovator, showed me what a fiercely loyal customer looks like. Scott was an early adopter, an enthusiastic user of Quicken financial software, and he was determined to show me its merits. He hounded me for weeks and I finally went to his office for a demo of Quicken 2.0. I watched as he tapped his keyboard. Money management templates popped onto his computer screen. He'd point and say, "Look at this!" "And now watch it do this!" "And here's the coolest part!" Scott didn't simply recommend Quicken, he insisted I buy it. That's the power of a fiercely loyal customer. Your customers do the selling so you spend less on marketing. Sales go up because a customer is buying more from you. You're better insulated from price competition, because a loyal customer is less likely to be lured away by discount. The definition of the word customer offers an important insight into why your business must develop and nurture the customer rather than simply attract a buyer. Customer is derived from the root word custom. That means the customer becomes accustomed to buying from you, and that loyal customer makes regular, repeat purchases, purchases across product and service lines, refers others, and demonstrates immunity to the pull of the competition. And here's the important thing. Each of those behaviors make your cash register ring. We're all looking for this. So want to build a business that thrives? Build customer loyalty.