Loyalty Tip #9: Focus on Customer Retention, Not Customer Acquisition

Customer acquisition methods such as sales and Groupon really do bring more traffic into your store and give a short-term boost to profits. But using huge discounts and sales mostly attracts bargain hunters. These customers either don’t return; or worse, return expecting you to bend over backwards for them for very little profit just like last time.

If allowed to repeat, your store will build a reputation as a bargain bin, attracting more bargain hunters and forcing you to further lower your prices. This locks you into a constant downward spiral. The long-term drawbacks of having a disloyal, price-focused customer base far outweigh the short-term boost in profits. Attracting customers is not as important as maintaining good customers.

Good service and a loyalty program such as Retail Hero's Hero Points will lock in good customers who are willing to pay the listed price, and weed out the scrooges that give you headaches. Customer Loyalty is a long term strategy. It boosts profits in the future, over an extended period of time, and provides stability and security for your store.

Source: Loyalty 360 Releases Top 12 Customer Loyalty Trends for 2012 http://www.prweb.com/releases/2011/12/prweb9021678.htm

What Are Retail Hero's Customer Loyalty Tips?

At Retail Hero, our passion is making local retailers more profitable through customer loyalty, so that in turn they can make a difference in their community. We believe that customer loyalty is the vehicle for this difference.

We learned how retail customer loyalty works while we were developing Hero Points. Every revision comes after we learn more about how it works.

We want to share what we’ve learned with you. That’s why we’re starting a Customer Loyalty Tips newsletter where we’ll send you hints and advice for making and keeping customers for life. We’ll send you our passion.

The tip you read above was a sample of the type of information that you will receive. Read them, and sign up for our Customer Loyalty Tips newsletter to receive more of them in the future.

Retail Hero are the customer loyalty experts, with the first implementation of Hero Points in 2005. Since then, the software has undergone several revisions and hundreds of installations worldwide to become the powerful customer loyalty platform that it is today.

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Or contact Retail Hero now to learn how Hero Points Customer Loyalty will let you make your good customers loyal.