Appealing to Repeat, Loyal Customers

Here is why it is so important to target current customers, as well as new ones: • Develop a data base with the appropriate customer information. This could be done by giving your shoppers a small prize for filling out a short form and then updating the information periodically.

Computerization is not necessary to do this, although it helps.
• Set up some type of frequent shopper program that can reward people for their continued patronage. The program does not have to be complex. For instance, many car washes give out punch cards (or a similar variation) whereby customers can earn free services based upon a certain number of washes.

• Communicate with repeat customers on a regular basis. Mail them a letter at least quarterly. Call them at least once per year. Customers are often quite impressed when they receive 'friendship' rather than "sales pitch" letters and calls. People like to feel appreciated.

• Run special events for good customers. This also lets them know how important they are to the firm.

• Offer extra services, such as free delivery or more liberal return policies, for good customers.

• Do not reward your new customers at the expense of the current ones. Think carefully about having promotions that offer benefits to new customers that are not available to current ones, such as reduced credit terms for first-time car buyers. Try to run promotions in a way that also offers benefits to current customers, such as also having special trade-in terms for people who have bought their previous car from the same dealer.

source: http://retailindustry.about.com/