How many loyalty cards do you have in your wallet right now? Do 
they mean anything to you or are they just more stuff making your 
wallet strain at the seams?

No, this is not just about the merits of loyalty programs. It is 
about the cost and the struggle to retain customers and whether 
it's worth it or not.

We have all had nightmare customers; think back to the beginning 
of the interaction. Did you bend the rules; maybe you had no 
rules at that point in your businesses evolution? It's possible 
that the transaction started off right and somewhere along the 
way went sideways. Did you worry about what they thought of you, 
your product, or service and bend over backwards to control the 
damage? What was the outcome of that? Are they still your 
customer or after you gave away the farm, did they disappear 
forever?

It's human nature to want everyone to see value in what you have 
to offer. It's easy to assume that everyone is your customer; 
they are not. The greatest respect you can show for yourself is 
to identify who your ideal customer is and work to attract that 
customer.

Common thought is it's an expensive process to go out and get new 
customers.  ...but sometimes, you have customers that are too 
expensive to keep. You think in terms of not excluding someone 
who may want to do business with you. If you have accurately 
identified the characteristics of your ideal customer and use 
the messages that are most effective at motivating them in your 
marketing and advertising, you will attract more customers that 
will appreciate how you do business, see the value in your 
products and services and act as your unpaid sales force.

If you feel a loyalty program should be a part of your marketing 
initiatives, there is no rule that says it has to be available 
to all of your customers. Why not make it available based on 
specific criteria and goals you set?  Rather than struggle to 
be everything to everyone, isn't it a better to have customers 
strive to be whom you want as a customer?

Companies with the greatest loyalty factor are not always the 
biggest businesses or market leaders. Those that market to a 
specific niche generally have the have the greatest loyalty. 
Their positioning is not based on price but on the specific 
characteristics and needs of the market they serve.

While you are in the building phase of your business, defining 
what you do, acquiring/developing new products and services, new 
customer acquisition is crucial. Later as your business matures 
and your focus on product development is less intent, customer 
retention becomes more important.

Regardless of where you are in the life of your business be true 
to your core customer and stop bemoaning the ones who got away. 
Sometimes you can count yourself lucky for the ones you lost. 

Nancy Fraser is the President of Nota Bene Consulting. With 
over 25 years in marketing & advertising, she leads a team of 
specialists in graphic/web design, SEO, marketing, advertising 
and branding. If your marketing efforts are hit and miss you will
appreciate the Free information available in the Notable News.
http://www.notable-marketing.com