Manage your customer service

Good overall service is the best way of generating customer loyalty. You can also help strengthen relationships with customer loyalty schemes. This can work for new and old customers.

Loyalty programmes reward customers for behaviour that benefits your business. Rewards can include:

• fixed or percentage discounts
• extra goods 
• prizes

They can also be used to persuade lapsed customers to give you another try.

Your customers' view of the service you provide will influence their loyalty more than rewards. Be sure to tackle any perceived customer service problems before implementing a scheme.

Examples of customer loyalty rewards

You can decide to offer rewards based on:

• repeat custom
• cumulative spend
• orders for large quantities or with a high value
• prompt payment
• length of relationship

For example, a car wash might offer free cleaning every tenth visit or a free product if a customer opts for the deluxe service. A mail-order company might look to revive the interest of lapsed customers by offering a voucher. You can improve response rates with such vouchers by setting an expiry date.

You can also provide key customers with loyalty cards that give them a discount on all their purchases.

Promote your loyalty scheme

Employees who deal with customers' orders should be fully aware of current offers and keep customers informed. Consider traditional marketing, digital marketing and social media promotions.