Customer Loyalty Skills

CUSTOMER LOYALTY SKILLS

Abstract:

Few evidence come from the marketing literature about customer loyalty skills. The purpose of this paper is to contribute to a better theoretical knowledge about the strategies as well as the practical applications of the loyalty programs which are fully positioned in customer orientated problems. Here we point out two principal strategic orientations and practices: one based on clients’ heterogeneity management, searching discrimination. Another one aims on the clients’ management, by locking and isolating them from competitors efforts. Both are not incompatible but very complementary.

INTRODUCTION

The secret to the success of a business primarily lies in its ability to attract and retain its customers. Any good trader understands that 80% of the business originates from 20% of his/her customers. It is therefore essential for any business to develop an effective customer loyalty strategy that will not only attract new customers and retain them, but also ensure the continued survival of the business. Often, it is more costly to attract new customers than it is to retain old ones. Thus, the correct strategy will definitely payoff if applied right. An effective customer loyalty strategy should aim at leaving a lasting impression in the mind of any customer: to the new one-a reason to come back again; to the returning one- a reason not to leave again; and to the regular one- a reason why that business is their choice for all time. One recommended strategy is adopting good customer loyalty programs ranging from coupons to promotions. You can even go further and provide additional credits for only members of a program. You can also keep a historical record of various products in your business. This ensures that product or service is always available for those repeat customers. Keep your customers posted on upcoming opportunities, especially on new products or services.

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