12 Laws of Customer Loyalty

1. Build staff loyalty

It's a fact: firms with high levels of customer loyalty have also earned high levels of staff loyalty. It's darn near impossible to build strong customer loyalty with a staff that is in constant turnover.

Why? Because customers buy relationships and familiarity. They want to buy from people who know them and their preferences. Key rule of loyalty: serve your employees first so that they, in turn, can serve your customer.

2. Practice the 80/20 rule

In building customer loyalty, the 80/20 rule is alive and well. Roughly speaking, 80% of your revenue is being generated by 20% of your customers.

All customers are not created equal. Some represent more long-term value to your firm than others. A smart company segments customers by value and monitors activities closely to ensure high-value customers get their fair share of special offers and promotions. Unlike many firms that simply measure overall redemption, these savvy loyalty builders pay close attention to who redeems.

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Jill Griffin (jill@loyaltysolutions.com) is president of Griffin Group (www.loyaltysolutions.com), a loyalty research, seminar, and consulting firm founded in 1988. She is author of Customer Loyalty: How to Earn It, How to Keep It and co-author of Customer Winback: How to Recapture Lost Customers and Keep Them Loyal.