4 tactics to build customer loyalty for a brand

May 13, 2010 | Edited by Ken Beaulieu
Permalink: http://www.fuelnet.com/?p=6202

A new survey by Forbes Insights of more than 300 woman-owned small businesses, sponsored by Key4Women, found that less than 40 percent of respondents were using any kind of social media outreach as a customer retention and acquisition tool — a big surprise in the age of Facebook and Twitter. Moreover, a quarter of those surveyed said they didn’t have a company Web site.

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