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    0 Replies Latest reply on Jun 30, 2008 3:49 PM by rontowns25

    How to Get Customer Loyalty in Franchising!!!!

    rontowns25 Adventurer
      Know these tips and communicate them to your franchisees. Attracting new customers is important, but maintinaining your loyal customer base is even more important!!!!!

      Tip #1: Know the +real+value of your product or service.

      Loyal consumers will
      continue to come back to your business because they believe that there is some
      value to it. A customer will hear about your product or service, try it once,
      and if they are happy with it, they will come back time and time again. There
      is a sense of reward or value that they associate with your product. When you
      are trying to attract your ideal client, you have to know the unique value of
      your product or service that will create loyalty in your consumers, and tell them what it is.

      Tip #2: Know the lifetime value of your customer.

      Not every customer is worth
      the same amount to your business. Someone who spends $50 a month is not worth
      the same as a customer who spends $500 a month. Look at your database and see
      which of your clients are most profitable to your business. These people are
      your ideal clients, the ones you need to target for consumer loyalty.

      Tip #3: Create a reward program for ideal clients.

      The 80/20 rule applies here.
      This means that you need to identify the 20 percent of your consumers who are
      generating 80 percent of your revenue. These people should be given the most
      benefits, privileges and perks. Typically it is best to reward these consumers
      with something that is in sync with the product that they attracted to. For
      example, if you have a customer who spent $5,000 on your designer jewelry, you
      could give them a $100 off coupon for their next purchase. This not only shows
      your appreciation for their return business, but it is also an investment to
      get them to come back again.

      When providing incentives or
      benefits to your most important consumers, an element of surprise or wonder is
      always great, especially when it is unexpected. It always creates the best
      response because it makes them feel valued and appreciated. These small actions
      establish that bond that in turn becomes consumer loyalty.

      Tip #4: Communication is Key.

      When you establish a
      trusting relationship with your loyal consumers, you have to have great
      communication. Loyal consumers are loyal because they feel like an integral and
      important part of your business and
      your success. Keeping them informed of the good and the bad is essential!

      Open and honest
      communication not only strengthens the loyalty of your customer, but they will
      support you though tough times. As a company if you are in sync with your
      consumers and there is clear communication between the consumer and the
      company, it is a straight and mutually beneficial relationship.

      The bottom line is that loyal
      customers are the best and most powerful source of free advertising and
      publicity. Loyal customers become advocates; they will refer your business or
      service to friends or family because they have established a relationship and a
      bond with you. They will typically spend more money with you per product
      category. They will typically try out the new products or services you provide.
      Most importantly they will give you feedback, since they feel like an important
      part of your business they care enough to tell you how you are honestly doing.
      Loyal consumers are the key to your business growth and success.

      There is a library of tips here...