The secret to build customer loyalty is something I learned from the great businessmen before me.
My father told me there are two ways to learn.
You can learn through your own experience (the hard way) or you can learn the way a wise man does.
“A wise man will learn from the mistakes of others.”
That is the premise I took when concocting my secret sauce for building customer loyalty.
Cash follows the “Golden Rule”
Let’s take a lesson from an entrepreneur who took hold of 1/4 of the American marketplace at the turn of the century.
First of all, who is the business mogul I’m talking about? His name is James Cash Penney.
He founded the department store chain JCPenney. Don’t worry if you’ve never heard of it. There aren’t too many of them anymore. We’ll talk about that too.
Penney began as a partner in two department stores in the late 1800s. After buying out his partners, he renamed the stores “The Golden Rule,” which reflected his store’s service policy.
This “golden rule” policy helped him open 893 other stores by the year 1958. The department chain even grew throughout the Great Depression. Old JC’s company model was based around service.
“Courtesy treatment will make a customer a walking advertisement.”— James Cash Penney
What I learned from that was that service was senior to price. Providing the customized service each kind of customer needs is the secret sauce to their loyalty.
Violating their own principles is what caused the later downfall of this retail giant.
Lower price doesn’t create customer loyalty
In 2012, JCPenney lost $1 billion dollars.
James Cash Penney built a successful brand on this concept of service and value to their customers.
The year 2012 was an economic recession for America, and the company stopped providing service and started slashing prices. JCPenney locations continue to close across the country to this day.
My secret sauce for building customer loyalty is an old recipe, but it works. If you take the time to really assess a customer’s wants and needs, they won’t just be loyal. You will acquire new customers as well.
Don’t mess with it — it works.