Customers are now in charge. Thanks to the growth of the Web,
it is easier than ever to comparison shop and switch from one
business to another with the click of a mouse. However,
research has found that in the online market, customers yearn
for trustworthiness more than ever.

Customer relationships are a company?s most valuable asset -
worth more everything else combined as no customers = no
business. Getting and keeping more customers who stay with you
longer is crucial. If your customers are loyal to your
business, they will be much more likely to choose you over your
competitors. Loyal customers will be much more likely to tell
their friends about you. Loyal customers spend more and bring
in even more new customers. Loyalty is immensely valuable.
Research has shown that a 5 percent increase in customer
retention rates results in a 25 percent to 95 percent increase
in profits.

It?s easy to say customers are our most important asset but
turning CRM strategy into bottom-line results is hard work. It
means winning the battle for customers? hearts and minds every
day, with each interaction at every customer touch point.
Long-standing relationships only arise from trust gained over
many transactions and by customers' belief that the company
wishes to keep them around rather than drive them away.

Creating a customer-focused company starts with the definition
of a CRM strategy, which must then be filled out with new work
processes, organizational changes, and even a revamped
corporate culture.

To create customers for life, customers who will become
advocates with the perception (and don?t forget that perception
is reality) they need to believe that you do what's best for
your customers, not just what's best for your bottom line.

To do that you need to:

1) Find out what customers want and know what you are providing
matches that. Do not start with the bottom line. Profit and cash
flow are residuals of attention to the needs and preferences of
your customers. Of course, profits are crucial. But long-term
cash flow and profits come from regular customers.

2) Be honest and keep things simple, listen, communicate openly
and keep your promises. Deliver what you say you will. Far too
many businesses focus on ways to keep customers, only to lose
sight of the fact that their product or service simply isn't
what it should be. Make certain that the core of what you do is
deserving of long-term customer loyalty, and then look for ways
to nurture it. Make it simple to do business with you.

3) Practice what you preach and preach what you practice. Treat
your customers like you would like to be treated and then go
even further by, in that classic phrase: exceeding their
expectations. Give customers reasons to stay. Great service or
products are terrific, but it never hurts to lure customers
into the long-term fold. How about discounts for regular
customers? Customer loyalty is needs to be appropriately valued
and rewarded.

4) Nurture employees. ?Old-fashioned? solutions still provide
the edge. Research shows that a personal relationship with your
employees is the key to keeping customers loyal and that happy
staff keep customers coming back. Treat your employees as you
would want to be treated year after year. Not only does that
encourage staff to also do their bit to entice customer
loyalty, it's emphasises a supportive, responsive environment.
Employee loyalty needs to be appropriately valued and rewarded.


5) Use sensible marketing practices. Not many people enjoy
being inundated with telephone calls and mailings so don?t do
it! Test, test, test and track the customers who come back.
Once you know who your best customers are, the real work
begins?convincing them to stay forevermore. Repeat purchase and
retention rates capture the real financial ramifications of
whether or not a company is delivering high value to its
customers.

6) Know the value of your customers, segments and groups. Know
who is likely to be loyal. Some customers are more trouble than
they're worth. Monitor what goes into keeping a customer
satisfied; if it's too costly or simply too much work - it's
wrong to say that everyone should be a lifelong customer.

7) Use effective CRM systems, don't let the systems use you.
Don't be driven by the vendor or consultant - use them, they're
likely to know the technology far better than you. But let
customers' needs and everything above drive how you use the
technology. Remember it is an aid not an end.

That?s all there is to it!


About The Author: Richard Hill is a director of E-CRM Solutions
and has spent many years in senior direct and interactive
marketing roles. E-CRM - http://www.e-crm.co.uk - helps you to
grow by getting you more customers that stay with you longer.
We provide practical solutions that pay for themselves. We help
you to make sure that your marketing works.