The best way to build your business?
What is the difference between focusing on bringing in customers and building customer loyalty? If your focus is on bringing the customer in the door and making a sale, then your focus is on the “got’cha” factor. This is what makes the customer walk through your door and buy what ever product or service you offer. You presented a marketing campaign that made that person think it was a deal they couldn’t pass up or a deal that they absolutely needed.
A business that is focused on creating customer loyalty is focused on not only getting the customer in the door and making a sale, but in keeping that customer, building a relationship with them so that repeat business is generated. This relationship with the customer is built because of employees within your business, your management and service. Loyalty is not built out of a sale, it is not built because they came through your door today.
Let’s look at Best Buy as an example, they no doubt have many satisfied customers. These are customers that do their business with Best Buy unless another company offers a better discount, is closer to where the customer lives or has a larger selection of merchandise. There is very little interaction between the customer and the employees and management. They are working with Best Buy not Jill the cashier. There is nothing wrong with this, Best Buy is a very profitable company and they have hundreds if not thousands of new customers each day. But without the huge amount of advertising dollars, they would not be profitable or as large as they are.
Now compare this to John’s Entertainment and Electronics. They are not a franchise, they do not spend thousands of dollars to advertise nationwide and bring in people from everywhere. But they have been in business for 75 years, they are a multimillion dollar company and they have a huge customer base. Their employees have been with them for years, they know most of their customers by name or at least by need. Their customers will come to them over Best Buy any day even if they are slightly more expensive. They are not interested in the next big entertainment company that has the larger selection or that is offering a “great discount” to all new customers. Why?
John’s Entertainment and Electronics has focused on the customer not the sale. They meet the needs of their customers and they treat them like people, not sales numbers. Problems are addressed and worked on, if there is an item that John’s does not carry they will special order for the customer. They do not need to waste the money on advertising because their customer base tells their friends and family members that if they need anything in electronics or home entertainment John’s is the place to go because of the service and the selections.
Creating customer loyalty allows your loyal customers do your advertising and marketing for you. As a customer which store would you prefer, one that doesn’t really care if you come back after you made the purchase today, or the one that knows you by name and can meet your every changing needs, the company that values your business? Now which company have you created? After reading this article, which one do you want to be?
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