by Shawn Wells

Created on: July 14, 2010

Many people, including widely published authors like Timothy L. Keiningham (Loyalty Myths: Hyped Strategies That Will Put You Out of Business, 2005), say that there is no truth to the well known adage about loyal customers making or breaking a business financially.  However it only takes a few trips to the local grocery store to know that a loyal customer base is what keeps a business going.

Transient business is all well and good.  Summer vacationers stopping at your store to browse your stock and maybe make a small purchase or two.  But these are customers that, for the most part, are never seen again.  The people that keep your business going are the ones who come back day after day and week after week.  These are the costumers you want to attract, first of all, and then keep returning to you.  

So the question of relevance is: how do you create a loyal customer base?  There are several widely used methods, all successful to some degree or another.  But in every case there are some simple basics to follow.  

Step one: make your store inviting.  A handpainted sign over a screen door wont attract many people in the community to you.  A professional looking sign, on the other hand, with your store name in big letters and bright colors, maybe even with a catchy slogan added in, will catch people’s attention.  They’ll know your store is there, and know why they’ll want to shop there.  Would you as a customer rather shop at “Al’s Fish Market: The Freshest Catch of Your Day” or some place called “Al’s Fish?”  

Step two: hire the right employees.  It sounds simple, but I’m not just talking about someone able to work the cash register or push a broom.  Customers want to be greeted by a smiling face.  By someone who will talk with them about the weather, or about local politics, or about how tough the economy is right now.  A friendly environment means happy customers.  Happy customers are customers that want to come back.  

Step three: don’t overprice.  Yes, you need to make a living.  But the people you’re selling to have to make a living also.  If an item you’re selling is twice as expensive as the same item in a WalMart two miles away, people will drive the two miles to get that item.  That being said, if one or two of your big ticket items are considerably more expensive,

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