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1. Remember the meaning of “customer friendly.” First (and last) impressions are lasting. To build a customer base willing to go to bat for you, make sure that all transactions are bookended with positive vibes. For example, one gift shop in Bar Harbor, Maine, welcomes snacks and dogs into the store with a cheery sign up front. The extra effort required for shop clean-up is more than made up for by the friendly relations with tourists who are used to reading long lists of restrictions.

2. Let customers reach real people. Passing off callers to an automated answering service or voice mail is a tempting time-saving strategy. But by letting people air their questions or concerns live, you immediately let your customers know that they are a priority. Follow the example of Netflix; even though it has a relatively simple ordering process, the company invested in a large call center to field customer inquiries and ease any bumps in the road. If that’s not realistic for your business, consider using LiveChat software, but make sure your employees give their full name to add that personal connection.

3. Know your customers by heart. People return to neighborhood bars week after week because the bartender knows their favorite beer, remembers the appetizer they like most, and asks if their dog is feeling better. To emulate this kind of recognition, keep a small file on your best customers, and jot down any information that may be pertinent. Consider using one of the good contact software programs like ACT or Goldmine.

4. Choose your words carefully. As your customer is checking out, do you consider the deal done? You may have provided great customer service and closed a sale, but it’s the total experience that keeps people coming back. Following through is a key customer retention strategy. For example, when sending your invoice or bill, phrase your requests in a way that makes the customer feel appreciated. Choose your wording carefully and remember your manners. Include “please” and “thank you,” it never hurts.

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• Make it mutually beneficial. You create loyalty through give-and take relationships, not by stacking the deck solely in your favor. If you want repeat customers, give them something you don’t give to the first-time buyer. And once you know you’ve found a core group of returning customers, treat them like they are very, very special to you, because they are. Create a customer retention program that lets them know they are a cut above and you recognize that. And always think about “giving” rather than “getting.” The gains over time will be worth your efforts.

• Repeat, then repeat again. Loyalty programs require constant care and attention. Attracting new loyal customers, recognizing them, inviting them in to the “exclusive club,” and then communicating with them as a special group more frequently and with more targeted messaging is crucial. Then, start the whole cycle over again and keep working to grow that loyal group. Don’t stop, or they will stop as well, because once you give special recognition, there’s no taking it back again!
  

• But also change it up. As hard as you work at making your loyalty program something of value to your customers, you have to keep it fresh. Plan to change it up each year, or at least every two years. Re-brand your loyalty card. Add a new loyalty benefit. Change your messaging (but keep it within the family of benefits you have identified for your plan). Just keep finding new ways to keep customer interest. There’s a new idea and a new competitor around every corner, so keep your creative thinking cap on.

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1. Get back in touch with old customers. It’s all too easy to ignore your old customers, but they are often your best source for new business. Sometimes sending a personal note, making a phone call or inviting an old customer to lunch is all it takes to rekindle a business relationship. Also, consider a “Welcome Back” offer, such as a freebie or a discount when they resume doing business with you.

2. Let your customers help you out. Business is always a two-way street. Some customers you’ve helped in the past may be glad to return the favor. Often, all you have to do is ask. There are two things you can ask for: testimonials and case studies, which you can use in your sales presentations and advertising; and if you have an influential customer who’s appreciative of what you’ve done, ask that customer to write and send an endorsed letter to others recommending your business. Offer to pay for the printing and postage, and help with the writing if necessary.
   

3. Give extra attention to high-integrity behavior. To set yourself apart in the marketplace, go out of your way to conduct business in an especially trustworthy manner. Bend over backwards when it comes to refunds and exchanges. Do all you can to act in your customers’ best interest, even if it means referring them to a competitor (if you don’t think you’re the best choice for what they want). If you get (or strengthen) a reputation for being trustworthy, that can be the most precious marketing asset of all.

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While loyalty marketing experts say it’s becoming increasingly important for small businesses to boost their online presence, particularly in social communities, they say the following customer retention tactics also should not be ignored:

1. Rewards program. Less than a quarter of small businesses surveyed in the Forbes Insights study had tried a customer loyalty program — and it’s not just for the big brands. Consider emulating Borders bookstores, which provide a free membership card in exchange for an email address. Customers receive weekly emails with coupons and in-store promotions. Borders’ competitor, Barnes and Noble, charges a small monthly fee for its rewards program but offers discounts on anything purchased in the store. Consider an option that best fits your business, or develop an entirely different customer retention program altogether.

2. Frequent buyer program. Eighty percent of survey respondents had never tried a frequent buyer program for their business. This valuable tactic, similar to a rewards program, calls out your best customers and gives them special attention and perks.

3. Activity and volume tracking. Avoid working blindly by keeping track of how your customers spend their money with you. That is the best way to implement a frequent buyer program, and it also opens the door for product suggestions.

4. Customer newsletters. Anything you can do to strengthen the connection between you and your customers is the key for building customer loyalty for a brand. Keep in touch with a weekly or monthly newsletter, either through email or in print, as a personal way to keep your customers engaged and happy.

— Laura Paquette

“Engagement” is more than just a marketing buzzword — it’s the critical component to the success of every marketing endeavor you launch. Ensure that your next campaign produces great results by downloading your free copy of 5 Effective Marketing Tips to Engage Your Customers without cost or obligation.

• Have a clear goal. Your goal should be attainable and in line with the “game.” Remember that goals can be intermediate steps in the buying process. For instance, your game may focus on driving customers to your Web site, keeping your brand top of mind through press coverage, or elevating your customer retention program.

• Strip down. Try to make your game easy to play — you want as many people as possible to engage with your company. Though it may be tempting to ask participants to fill out a survey before they register for a contest, it may discourage people from playing at all. Try to get those who play to increase their engagement over time by sending your survey to the email address they registered with a few weeks earlier.

• Choose prizes carefully. Money, exclusive privileges, products, and a sense of achievement can all motivate consumers to participate in your game. Be sure to choose the one that makes the most sense for your company’s budget and the game itself. For example, a sweepstakes should focus on something tangible, while a recipe contest could do very well based on achievement alone.

• Cash in on publicity. People are obsessed with winning and with watching other people win (think television game shows), so be sure to make your contestants’ successes public. This will add value to your game and also give you rich publicity opportunities while building customer loyalty for your brand.

— Jessica Saint Jean

“Engagement” is more than just a marketing buzzword — it’s the critical component to the success of every marketing endeavor you launch. Ensure that your next campaign produces great results by downloading your free copy of 5 Effective Marketing Tips to Engage Your Customers without cost or obligation.

1. Put yourself in your customers’ shoes. To best serve existing customers, you have to understand what it is they are trying to achieve, who the decision makers are on their end, and how they operate, according to customer retention expert Colleen Francis of Engage Selling Solutions. She recommends having your salespeople write up a detailed account plan for your top customers. In it, include a review of the customer’s industry, their position in that industry, potential threats to their position (competition), and any customer satisfaction results. Share this dossier within your company to brainstorm ideas as to how you can maximize opportunities.

2. Consider “blue light” specials. Yes, K-Mart was doing them back in the day, and they work just as well for growing businesses in the Internet age (minus the light of course). According to Annie Wolock, owner of the e-marketing firm Keystone Media, special promotions are a great way to keep existing customers engaged. She recommends regular email promotions segmented by demographic, latest purchase, and money spent. By keeping customers “in the know” with special deals and discounts, they’ll feel special and more connected to your business.

3. Focus on service. Exemplary service is a surefire way to consistently set your company apart from competitors and remain tops in the eyes of your customers. CustomerServiceManager.com points out that customers will usually remember you and become a fan based on a particularly memorable (and hopefully positive) experience. Whether it’s fixing a problem with a product or providing actual human support instead of a phone menu maze, the easier you make it for customers, the more satisfied they will be. And satisfied customers are engaged, lasting customers.

4. Ask and ye shall receive. This may sound a bit over simplistic, but talk to your customers. Ask them questions; find out what it is you can do to keep them coming back. As Engage Selling Solutions’ Francis points out, finding the right questions first is paramount. Questions that reveal true buying motivations and get the customer engaged will lead you down the right path. Avoid falling into the realm of non-specifics and instead ask probing questions that clearly reveal expectations.

5. Do what you say. Proper follow-through is the sign of a great tennis or golf swing. It’s also a differentiator between a successful businessperson and a wannabe. You must be consistent from start to finish and show a customer that what you promise in the beginning is what you deliver in the end.

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In her new book, I Love You More Than My Dog: Five Decisions That Drive Extreme Customer Loyalty in Good Times and Bad, Bliss provides insight on the five essential decisions that lead to a loyal customer fan base and a successful customer retention program:

• Decide to believe. Believing in your customers means you trust them. By getting rid of rigid rules and policies as part of customer retention management, you will provide a more open and enjoyable experience for your customers, leading to stronger relationships.

• Decide with clarity of purpose. By establishing a specific culture for your business, you create the memory you want your customers to walk away with, leading to an experience they look forward to revisiting again and again.

• Decide to be real. Beloved companies know how to combine personal instincts with business decisions and forge personal relationships with their customers.

• Decide to be there. Building customer loyalty for a brand requires more than quality products or services. It’s about creating a positive experience for customers at every touch point. Bliss says companies that support their customers in this way “earn the right for their customers to return.”

• Decide to say “Sorry.” Admitting when your company has failed and then resolving to address the problem speaks volumes about your company’s humanity. Your customers not only will forgive you, but will also love you even more.

Think about it. When was the last time you received a handwritten card from someone that you recently did business with? Can’t remember? Probably because you never have. However, think how good you would feel if you did. Now, how about making your customers or clients feel good? Feeling good fosters stronger customer relationships, which leads to more referrals and more business, Busse notes.

Want to run a more customer-centric organization? Discover the top five tips for quickly and easily implementing a superior customer service experience. Download your free copy of Better Than Good: Customer Service Tips That Boost Profits without cost or obligation.

One simple but effective customer retention idea Busse recommends is to invest in a package of cards. Not standard thank-you cards, but something that resonates with you. You might even want to have several designs for different client groups, for example, one with flowers on them, and another with a beautiful landscape. Then, any time you get a new customer or client, send a card thanking him or her for choosing to do business with your company. After all, they probably could have gotten the same product or service from another company. However, they chose to get it from you. Aren’t you glad they did? Of course you are. So tell them.

Follow these quick tips from Busse to show some love to your customers or clients. They’ll love you back through customer loyalty.

• Be timely. As part of a customer retention program, send a personal thank-you note in the mail within seven days of receiving business from a customer or client.

• Don’t send a cheesy corporate card. Instead, find something that represents you or your customer or client.

• Make it personal. If you’re just going to write “Thanks for your business” and sign the card, don’t bother, you are wasting a stamp. Write a short note thanking the person for the specific product or service they bought or the referral they made.

• Don’t skimp. While email is free and easy to do, it won’t stand out like a handwritten card would.

• Build the relationship. It’s a good idea to thank potential customers for contacting you about your products or services, even if you didn’t make the sale today. The buying process can be a long one. And if a buyer is thinking about making a purchase, you can keep your business top of mind with a timely communication.

Don’t let another day go by without thanking your customers or clients as well as the many people that help you. We all remember those who are appreciative of our business and help us — and we quickly forget about those who don’t. Which do you want to be?

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• Eliminate the customer obstacle course. Who does the customer call? Sales? Operations? Customer service? It is in these handoffs that customer failures occur. Make it clear how customers can do business with you in a way that’s actually beneficial to them.

• Fix the problems. Customer satisfaction research has told us how we can improve, but we haven’t acted on the information. Customers read this lack of action as a lack of respect. Don’t talk a good game: address the top 10 issues bugging customers.

• Deliver what you promise. From missed deliveries to unwieldy warranty claims, customers are annoyed and aggravated — and they’re telling everyone they know.

• When you make a mistake, right the wrong. If you’ve got egg on your face, admit it. Then right the wrong. There’s nothing more frustrating to customers than a company that won’t admit it faltered.

• Work to believe. Very little respect remains after a customer is put through the third degree when they need to return a product, put in a claim, or use the warranty service. Suspend the cynicism and work to believe your customers. Most are going to honestly relay what is happening to them with your product or service.

Want to run a more customer-centric organization? Discover the top five tips for quickly and easily implementing a superior customer service experience. Download your free copy of Better Than Good: Customer Service Tips That Boost Profits without cost or obligation.

“Conflict is a normal part of business, and we all need to learn how to deal with it in the right way,” Kuzmeski says. “If a customer thinks enough of you to give you the chance to repair a bad situation, take it. Play an active role in making your customer happy so that you can be sure to keep him or her on board with you.” She offers these tips to keep your customer retention program strong and build long-lasting customer relationships:

1. Extend a peace offering. It’s easy to reach out to customers when things are going well, but don’t succumb to the temptation to avoid them when hard feelings are present. Proactively reaching out to your customers can squash any negativity they may feel for you. Even the simplest gesture can be effective: Offer an apology when you’ve made a mistake. Then, make things right by extending a peace offering. It doesn’t need to be anything extravagant. It can be as simple as a handwritten note, a refund, or a coupon.

2. Don’t follow your “strike back” instinct. If an angry customer calls you fuming mad, your knee-jerk reaction might be to argue. Remember, though, fighting anger with anger seldom works. No matter how tough it is, do the opposite of what you feel like doing. Take a deep breath and remain calm. And most of all, diffuse your customer’s anger by immediately assuring him that you will make it right.

3. Get them to listen to you by listening to them. Customers will listen to what you have to say if you respectfully listen to what they have to say first. Knowing that you are truly listening to their concerns can cause your customers to agree to your suggestions much more quickly.

4. Have a standard service protocol at the ready. As part of any client retention strategy, create standards, procedures, and methods for dealing with customers and servicing their needs. It can really help when it comes to resolving conflicts or handling a dissatisfied customer. By creating a service protocol in advance, you provide a way to “enforce” how client conflict situations are handled. This allows you and your employees to more easily resolve issues and deal with those impossibly and consistently difficult clients.