When someone asked me a few days ago whether Customer Loyalty still applies in a recession my first instinct was to check his temperature to ensure he wasn't spouting rubbish as a result of some unknown illness.
After-all, the first thing we do during a recession is cut costs. How we do it is irrelevant; even if it means giving up our favourite brands for cheaper options. Right??
But then again I still cut my hair at the same barber shop; still prefer the services of certain vendors, even though their prices are higher than others.
So what determines my decisions? What determines whether or not I'm loyal to a particular product or service?
What determines customer loyalty?
There are five factors that determine customer loyalty. Let's look at two of them today.
1. Core Offering
Is your core offering something that people need? Or is it simply a 'nice to have'?
Companies that are constantly focused on what appeals to the customers they wish to attract usually have a high percentage of loyal customers.
Some of the things they focus on include - location, opening hours, and how quickly they solve customers' problems.
2. Service /Products
What determines your Service / Product offering? Is it you or what the market needs? The days of thinking up a product and throwing it at the market are long gone. Today's winners are the companies that are focussed on what customers need.
3. Trust
Do your customers trust you?
Can they trust you to always do what's best for them?
Can they trust you to always put their interests first?
During a recession the last thing anybody wants is to take the risk of buying something from someone they don't trust.
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