In checking over my list of my son's back-to-school needs, school shoes were at the top. Well, I thought to myself, it’s time for a visit to Gino’s Shoe Store, in Dallas, where, incidentally, I have purchased my son’s shoes since he entered toddler-hood.
In anticipation of writing this article, I contemplated for some time about where and/or how to begin. As if a light bulb popped on in my head, I recalled numerous conversations that I’ve had over the years with friends who also live in the Back Mountain. As most conversations go when you have a family to feed and clothe, these discussions inevitably come around to: “Where did you buy...?” and “How much did you pay…?”
The bottom line in many of these conversations has been that we do our best to purchase what we can in the Back Mountain in an effort to support our local economy. “We should keep our money local” is the general consensus. How true—it is very important to be loyal to our local independent businesses.
But, what exactly is customer loyalty? Every person you talk to can give you a different definition based on his or her personal experiences and lifestyle choices. This is where the concept of loyalty becomes personal, or should I say interpersonal? Based on everyday life applications, we can be loyal to a friend, loyal to family, and loyal in a love relationship. Even man’s best friend can be loyal to his master.
Can loyalty be applied to the relationship between business and customer, or vice versa? It most certainly can.
In writing the opening paragraphs above, I became aware that I can indeed make the decision to be loyal to a business– but the reasoning behind that decision is where it becomes a matter of personal choice. I choose to purchase my son’s shoes at Gino’s because it offers top-quality shoes at fair prices. But, as I broaden my own perspective of loyalty even further, I realize that in doing so, I am also being loyal to Back Mountain businesses.
Loyalty Begets Loyalty
Reciprocally, businesses can also be loyal to their customers- enter a marketing strategy known as customer loyalty programs, defined as a structured, long-term marketing effort that provides incentives to repeat customers who return often, and in doing so, shun the competition.
To a certain degree, I guess you could say that loyalty begets loyalty. To be rewarded for being loyal to someone or something creates a relationship that is maintained by a continuance of that behavior.
In retail, these programs generally reward loyal customers with discounts, special offers, rebates, points, or prizes. Prime examples of such clever marketing strategies are frequent buyer programs that some businesses offer. For instance, Outrageous, in Shavertown, has an incentive-based punch card system for coffee customers. As soon as the card is filled, the next cup is on the house.
To cite another example, supermarkets offer the ability to sign up for frequent buyer club cards that yield savings each time they are used during the purchase of one or more of the store’s weekly specials. Many markets go the extra mile and accrue points for every dollar spent. While, in some instances, points can be used for even better advertised specials, others are occasionally tabulated for and can be used to obtain free merchandise, such as turkeys during the holiday season. I admit proudly that I subscribe to every card within a 20-mile radius of my home.
As a society, we are all loyal in one way or another. What about brand loyalty? Many of us have consistently purchased the same brand of toothpaste, coffee, and soap and even tend to frequent the same local pizzeria. But, noting the downturn in our present economy, there are economists who allude to a trend in today’s consumers opting for less-expensive alternatives. For instance, there was a time when the majority of car buyers consistently purchased the same brand or model car or even the same brand television or refrigerator. Today’s consumers, however, are being dissuaded by the best bang for their buck. A prime and definitely current example of this is the government’s “Cash for Clunkers” program. Consumers are literally being driven to car dealerships in search of the most cost- and environmentally-efficient alternatives.
Universally, however, there is no accepted definition of loyalty and, therefore, what qualifies someone as a loyal customer. Some claim we should measure customer loyalty by how much it contributes to the bottom line. Others believe that it should be based on a customer’s frequency of return. And, still others claim it's the customers' overall attitude toward the business that best describes loyalty. Here is what just a few of our advertisers, our friends, had to say about customer loyalty.
Mom & Pop Perspectives
Elva Valentine, Valentine’s Jewelry, Dallas, admits that she constantly thinks about customer loyalty...
“My most loyal customers are advocates for my store. They recommend us to their friends, family, and associates, and that helps us survive and thrive. A loyal customer is also one who checks with us first if he/she needs or wants anything in a category related to one that we sell. Loyal customers are friends and will tell us if they have a problem with our merchandise and service so that we have an opportunity to make a necessary correction. We love our loyal customers and are always looking for ways to reward them for their loyalty and friendship.”
“We have people who are ‘regular’ customers who live in Philadelphia, New York, and the Washington, D.C. area whose primary reason for coming to the area includes shopping at Valentine’s. We have customers from Texas and Florida who stop in when they come to visit family, make a wish list, and then call to order when they have an occasion. Why? There are probably many reasons. While many jewelry stores have as wide a selection of price points and range of styles, I’d like to think that many come to visit us as well as browse. We concentrate on long-term relations and are both customer serviced and service oriented. They get their jewelry cleaned and polished while we update each other on what’s happening in the Back Mountain as well as their activities. We are happy to see them whether or not they make a purchase. People can sense that and feel comfortable.”
George Creel, Really Cooking Café & Supper Club, Dallas, defines loyalty as: fidelity, constancy...
“Customer loyalty is when you have a person who comes to your business regularly. When they are not able to come, they refer their friends to us. They are the booster and fan club of our business. In other words, the customer is a constant and faithful supporter of your business… Any business can always find a fan base just by being consistent. Look at how many truly mediocre to poor chains are in America today. As long as you remain consistent, even consistently poor, you will find people to support you. What the customer today will not tolerate is inconsistency. In our case, to earn our guest's loyalty, we strive to keep our food, service, and atmosphere at the same level, so that our guests always find coming to Really Cooking Café a fun, relaxing, and pleasant experience...”
“There is a true trust and bond that starts to happen between a regular guest and Really Cooking Cafe that is a part of that loyalty. The guest knows that whether they come in for one of our New York-style cabaret shows, Sunday brunch, or for an evening of entertainment and good comfort food, they will always be treated like one of the family and we will always give them our very best. Because our guests get that from us, they give us their continued patronage and loyalty in return. Nothing is more valuable than the customer who truly loves your business.
