Customer loyalty matters because selling more to existing customers is easier, and cheaper, than finding and selling to new ones. Loyal customers tend to buy more, more regularly. And they will frequently recommend your business to others.

A total approach

Make customer care a key part of your business strategy. Effective customer relationship management means organising your entire business to focus on the needs of customers. List your top key accounts, and give these customers the best service. Make sure customer-facing employees have access to all the information they need to serve customers efficiently.

Give them the power to make certain decisions independently. Draw up a set of procedures and standards to be used wherever customers have direct contact with your business. For example, set standards for speed and courtesy when answering phone calls. Learn as much about your different customer segments as you can. Find out what, when and how customers buy, and use this information to improve the service you offer.

Use your database to record information about your customer's buying habits so you can tailor your offer and service.For example, a travel agent could send customers information about their favourite resorts at the time they normally book holidays. As part of your sales and marketing strategy, set out the levels of service you plan to offer your different customer types. For example, you might assign key account managers to your largest or most profitable customers. Find out more about your customers by generating opportunities for feedback

Develop a brand around your company, products or services. If customers can identify with your company and feel good about it, they will be more likely to remain loyal. Create a consistent, clearly defined identity for your business or product. Advertise to build brand awareness of your product or service. However strong your brand is, it should always be accompanied by consistently high levels of customer service.