How do I reward loyal customers?

Q. What are inexpensive ways I can reward repeat customers and increase shopper retention?

A. Many stores offer “customer loyalty” cards that mirror airline frequent flyer miles. The more money they spend in the store, the closer they work toward some item or amount of in-store credit. However, research has shown customer loyalty cannot be bought with loyalty programs. At best, rewarding good customers can be a part of an overall retailer/consumer relationship-building experience. The following are some inexpensive suggestions for keeping your best customers happy.

• Establish rapport with familiar faces.
When you see a customer on a regular basis, don’t be afraid to strike up an appropriate conversation. Customers feel valued when the merchants they call on know them and know what they buy.

• Deliver truly excellent customer service.
Nothing will get you further with an already established customer than taking your level of customer service to the next level. Giving little discounts where you can and letting them in on upcoming sales or merchandise that is new to the store will make them feel important. They will reward your behavior with sales and rave reviews. There is no better advertising than a happy customer.

• Be cautious about hard and fast return rules.
Maintaining guidelines regarding exchanges and returns is important for running your store, but don’t let firm rules that don’t account for special circumstances or loyal customers get in the way of doing friendly business. You can turn a loyal customer into an enemy if you make that customer feel like his or her situation is not important. Given today’s competitive retail market, taking a small hit on a return item is worth it when that customer repeatedly returns to your store and tells friends about the excellent service.

Do you have a retailing question? Ask Michigan Retailers in writing:
by mail: 603 South Washington
Avenue, Lansing, MI 48933;
by fax: 517.372.1303;
by e-mail: tscott2@retailers.com.