1) Attract the right customers for the right reasons
A very smart researcher once told me that 90% of loyalty problems can be traced to the sales process. This observation was based on many hundreds of one-on-one interviews with lapsed customers.

2) The most crucial time is the beginning
Buying your product or service does not mean they have a relationship with you. Are they open to it? Perhaps. Do you have to earn it? Absolutely. Their interest in your product is high, and they are willing to listen, but don’t be deceived, their interest in the category is also high. They are listening to what the competition is saying. Acknowledge them. Let them know, through words and deeds, that you value their business. Surprise them with value beyond your product’s functional benefits.

3) In established relationships continually reinforce the decision to buy
Once you have established a connection don’t abandon your efforts. The most important purchase isn’t the first, it’s the second. Reinforce how smart they are for buying your product. Give them every reason to buy from you again. Talk to them like you have a relationship, not like the sales guy trying to make his numbers.

4) Good customers expect to be rewarded
This isn’t to suggest that every customer gets a prize. Understand who your best customers are, the 20% of your customers who generate 80% of your revenue, (There is that good old 80-20 rule again) and reward them. Surprise them. Delight them. Make them customers for life. Make them so happy they tell friends and associates what a pleasure it is doing business with you. The ROI on these relatively small investments, especially compared to the cost of acquiring new customers, is huge.

5) The second most crucial time is when the relationship is at risk
Again, this isn’t for every customer, but for your best customers take the time to really understand what went wrong and then do something tangible to address their concern. Don’t take the relationship for granted. Whatever went wrong used up some relationship equity. You need to earn it back.

Extra points of interest …

• Customer relationship marketing is a very efficient use of resources in a challenging economy. Don’t cut budget here. In fact, add budget if you can.
• Make an active and tangible effort to build the relationship immediately after a customer’s first purchase. Their interest in you and the category is high, this is the time to stop being a product with a name and become a brand.
• Don’t be afraid to sell them more. But, take cues from their behavior. Don’t sell them the next widget on your product list. Sell them the widget that will most benefit them, based on their behavior. Done correctly, the sales process can become a relationship building tool.
• Customer service is a key element in successful customer relationship marketing. It’s a factor in every principle.

source:  James Hipkin