3 ways to increase customer loyalty

 

NOVEMBER 1, 2011

Win Customers by Getting to Know Them

Only by truly understanding your customer can you deliver what they want. Technology makes it possible to get to know your customers more deeply. Here are three ways how: Acquire customer info. Use every interaction as an opportunity to collect data, and don't rely on the customer to provide it. Loyalty programs that include automated cards can gather data on spending behavior and preferences. Slice and dice the data. Don't use broad segments to create a marketing strategy. Finely parse the data so you can understand customers on a more granular level. Identify and cater to core customers. Instead of emphasizing how much a customer spends in one transaction, calculate their potential worth over time. This will help you identify core customers whose loyalty it pays to earn.

Today's Management Tip was adapted from Harvard Business Review on Increasing Customer Loyalty.