How Buying New Customers May Be Costing You Existing Loyal Customers

Are you buying new customers through special offers? Have you ever considered that these actions may be costing you your existing loyal customers?

Do you offer coupons to entice new business? Or maybe you give a preferred discount to a new client? If so, have you ever considered what your current loyal customers are thinking?

A successful business small business owner was sharing a story about her recent experience with a long time business. Over the course of 20 years, she had consistently patronized a framing specialty store located 20 miles away. She found the quality of work to be superior and was willing to invest not only the additional travel time, but the additional dollars that this store demanded.

Then she read of a special offer to new patrons providing a 20% discount on their framing needs. Never during the lifetime of her customer tenure did the owner of this small business provide her with any discounts; acknowledge her patronage or take any to further actions to develop a loyal customer relationship.

Now she is actively looking for a new framing specialty store because the Point of Connections - Seeing and Feeling - were violated. Additionally, the Points of Potential, the operating systems, that include processes, policies and procedures were not in alignment with the other purpose of business of building relationships.

In the book The Ultimate Question, the author explores the concept of bad and good profits. Bad profits are those where the business have tried to buy growth, to increase sales through new customers. Good profits are those where the growth comes from loyal customers.

Achieving those business goals comes from making the customer service experience exceptional through the Points of Potential and the Points of Connection. Just remember to be careful if you decide to buy customers or buy growth. For you may be also losing those existing loyal customers that are your competitive advantage.

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