Has Customer Loyalty Died?

I attended a national conference a number of years ago, and there seemed to be quite a discussion whether customer loyalty was alive and well, or had gone by the wayside resulting in a commodity market for the consumer. It was really quite interesting and did make one think about their own business and the relationships they have. Fast forward to today’s economic climate.......I think it might be a combined result of both.

True, the economy can effect the price paid for a product or service, hence the development of a commodity market. The result is the cheapest on the block wins. Price will always be a factor when choosing whom to do business with, but the heart of loyalty is to have the cost be replaced with investment. It is the investment of dollars spent that recognize value, and value is what is at the heart of customer loyalty. A truly loyal customer that recognizes the value they receive will always pay more for a product. That value is based on trust, being likable and providing knowledgeable guidance of the product or service they desire.

Consumers purchase name brand products for one reason: trust. Consumers choose the dealership for automotive service work for one reason: expertise. And consumers choose to do business with one financial planner over another for one reason; they like them. To earn that desired customer loyalty is not that difficult. It is understanding the value of that long-term relationship to your business and cultivating the environment to make it happen. Expect your employees to become an expert in their field and provide the training to accomplish this. Let your employees know you expect them to go the extra mile even before being asked by a customer; and become that likable person. And expect them to do as they promise customers, being easy to do business with a smile.

A company can have a dramatic impact over customer loyalty. If your company struggles in the commodity market, and striving to maintain solvency while offering the least expensive price to gain business, you must change your ways. For if you remain stagnate in those business practices, I can easily predict your future and it won’t be bright. Foster, cultivate and facilitate a healthy, infectious (and profitable) environment of the tools needed to promote customer loyalty...............and make a statement that customer loyalty is alive and well.

Just my thoughts...........blah, blah, blah.