The article “Are You Really Committed to Building Customer Loyalty”, by Bob Greenwood outlines some of the challenges a jobber faces in retaining shop owners businesses. Most jobbers think that when a shop leaves a jobber business, they feel that it was due to price, but under further scrutiny there is more than 60 per cent chance that it was not due to price, but rather poor service according to Bob Greenwood.
Many jobber owners and managers execute their business strategy with a different set of priorities, often spending more money to gain new business rather than ensuring existing customer needs are met. Building client relations will lead to customer loyalty, therefore, jobbers must have a plan in place to accomplish their objective. The result of customer loyalty is beneficial to the jobber in that shops will buy more frequently, and those who have a positive attitude towards the jobber will also recommend other shops to do business with them.
Another important evaluation that a jobber must undertake is to properly measure the results obtained from investing in customer loyalty. The article outlines four areas that should be measured as follows. 1) Measure the total profitability of the jobber store, 2) Measure individual shop net profit to the jobber store, 3) Measure the number of referrals as loyal clients refer other shops, and 4) Measure specific lines where increased margins can be obtained. These measurements will reflect the level of success in achieving customer loyalty and furthermore, could be used as a benchmark for future objectives.
To build shop loyalty requires strategy on the part of the jobber, but it is also important to understand the reasons w ...