Finders, Keepers… or Not

Aug 28 2008

-Katie McGinty

Have you ever heard the saying, “A buyer is not your customer until they buy again.”? There is much truth in this statement.

The number one goal of most every organization is to increase revenue. Likewise, most companies allocate large amounts of time and money toward acquiring new customers who will enable them to achieve this goal. However, the number of companies who allot an equal or greater amount of time toward retaining current customers is much less, but arguably just as important. So, why is a buyer not a customer until the second time they buy your product/service? The first time, they are simply “trying” your product. If they are not pleased with the product or any other aspect of their experience with your company, they are unlikely to do business with you again. But when a buyer purchases your product/service for the second time, they become your customer. This second purchase could have happened for one OR several reasons: your product performed well or met their expectations, your customer service was good, your sales staff was friendly, and so on. The key is to give your customers as many reasons as possible to stay loyal to your brand.

The race isn’t over yet. Now that you have your customer, you must keep them. The next step is earning their loyalty. Understand and anticipate what their needs are going to be and develop your products to fulfill those needs. You must also know why they are doing business with you. Is it because you are the most convenient? The cheapest? The newest trend? Or because they truly love your product and trust your brand to meet their needs? Hopefully it’s the latter. Yes, the other reasons will bring you business, but they will not create lasting, loyal customers. The best way to build this trust is to consistently deliver a quality product/service that satisfies their need. Every business has competitors, but not every business produces quality products. Defining your brand based on quality will always set you apart and be recognized and appreciated by customers.

Quality = Satisfied Customers = Continued Business = Customer Loyalty

Another great thing about earning loyal customers is that a large portion of new business will come from referrals made by this group of customers. Seems like a win-win situation to me.

Just as product quality is important, it is equally important that quality is portrayed throughout all contact points your company has with consumers. Especially in your marketing efforts. Aside from past experience and word-of-mouth, the only information consumers will know about your brand is through the advertising and messaging you create. You want this message to represent the same quality they expect from your company; anything less will be detrimental.

Finally, reward your customers for being loyal. Yes, you are already anticipating your customers’ needs and providing quality products/services to fulfill those needs, but it never hurts to give them another reason to remain loyal to your brand. Before you can reward them, you must first identify the buying characteristics of your best customers. What do they most like about your product? Do they buy often or infrequently? What do they buy most often? Once you know these answers, you can customize the reward. For example, if you are a car dealer, your buyer is much more infrequent than a grocery store, and your reward would be tailored differently. When thinking about your reward, you don’t have to start big. Promotional coupons and discount offers are nice, but so are the small things, such as a personalized ‘thank you’ note or a birthday e-card.

Now, take a moment to look at your customer/client list. Eliminate anyone who was only a one-time buyer. Are your customers loyal?