A recent research report on customer loyalty brings out some interesting points:

Eighty-two percent of Americans participating in customer loyalty programs have actively referred friends and family to their favorite loyalty programs, according to Parago’s 2004/2005 Customer Loyalty Research Report. The findings indicate that customers actively refer others to their favorite programs, especially high-income earners who tend to be more involved in loyalty and rewards programs.

So what does this mean to you? You want your customers to refer others to your business. The report highlights the reason for this:

With the cost of acquiring customers via traditional marking efforts continuing to increase, one can begin to imagine the dramatic effect referrals can have on a company’s bottom line.

Referrals are golden because people come to you with an established positive impression of your goods or services. Encourage your existing customers to refer others. The article continues with this advice:

The key to successful referrals is identifying the customers most likely to be advocates, then creating a focused referral program to track and reward their participation and subsequent impact.

You know your customers (well, at least you should) and can identify those that are already giving you comments and positive feedback. Invite these individuals to spread the good word about your company. Some may do it for free. Others may require a little compensation to motivate them. In either case, encouraging a system of referrals from your existing customer base can lead to magnificent growth and opportunities.

I recently saw an article about the Boating Industry’s top 100 dealers. They identify some important criteria for your business:

If your company:

• Displays a consistent and clear understanding that the profitability of the organization is directly related to the extent that it focuses on customer satisfaction
• Provides customers with an experience worth returning for and recommending to others
• Prepares for future success with sound planning, marketing and training initiatives
• Delivers on the dream that the boating lifestyle promises…

Then you need to apply and be recognized as one of the top dealers in the United States.

Now, before you think “I’m not in the boating business,” think about how these principles apply to your business. Ask yourself these questions:

• What are you doing to improve customer satisfaction?
• Are you getting any referrals? Why?
• Do your customers return? Why?
• Are you looking to the future, or resting on your laurels?
• Do you deliver on the dream and expectations your customers have?

Take the steps to be a top 100 company in the boating business, and apply them to your situation. In so doing, you’ll see the difference and can measure the success.

James Archer brings up some excellent points about naming your company:

1. Remember the Name’s Importance
2. Stand Out
3. Avoid Generic Surnames
4. Avoid Descriptive Names
5. Avoid Acronyms
6. Avoid Faux Latin
7. Avoid Names ending in -nt
8. Avoid Spaceless Names
9. Avoid “Tech Power Synergy” Names
10. Find Examples to Emulate

After reading his explanations, I’d have to say they make sense but they do leave me with a few thoughts:

What if you’ve already picked a name?

So you’ve had your company name for years. Are the points above useless? No! You market your company using your name everyday. If your company name is hard to spell, pronounce, or remember, try marketing your products or services by name instead.

Domain Names

Your domain name is your address on the Internet. If your company name is hard to swallow, it is a good idea to pick a different name for your web domain. I’ve outlined some steps to picking a great domain name earlier.

Phone Number

Often times your business will have a phone number like 1-800-CALL-ATT. Keep this simple. If your company name is too long or hard to fit the phone number format, try using a word that describes your services. For example, 1-800-FLOWERS gives both the name of the company and clearly defines the service.

First Impressions

Your company name is often the first thing a potential client will see or hear. Does it represent what you do? Does it convey a sense of professionalism?

Your return customers will have a hard time referring friends if they can’t pronounce or spell your company name. Choose a name wisely and the business will continue to roll in as easily as your name rolls off the tongue.

Before we begin, read what a “Return Customer” actually means to your business.

You and I both want to find, nurture, and keep return customers. On this site you’ll find examples from everyday consumer experiences in stores, on the web, over the phone, or walking down the street that provide valuable lessons to improving your business. I’ll search for news articles that can also teach us of what to do and what to avoid.

Welcome to ReturnCustomer.com!