Enjoy Your Stay If you own an online business, you won't want to miss these tips for creating loyal customers.

Finding customers. Serving customers. Keeping customers. Youknow this song and dance, whether you're a dotcom or abrick-and-mortar. In fact, competition in cyberspace is as fierceas ever-it only takes one click to get to the next e-tailer. Sofinding customers isn't the main challenge-it's keepingthem. Ellen Reid Smith, author of e-Loyalty: How To Keep Customers Coming Back ToYour Website (HarperBusiness) and founder of Reid Smith andAssociates, a Web marketing strategy firm in Austin, Texas, has afew pointers for you:

First impressions count.Think about the product and/or service you're selling, andpaint a picture of your target customer. Then design your Web sitearound what is important to that group. Are they teenagers? Gourmetfood connoisseurs? Soccer moms? "When they first come to thesite, your target customers need to see themselves in yoursite-they need to see their products, their needs," says ReidSmith. The marketing methods you would use in a traditional settingstill apply here: Do your research, and get to know youraudience.

Be a problem-solver. Thinkabout when you are the customer-do you only want to be shown abunch of products, or would you rather be told how that productcould solve one of your problems? Most people are moved by thelatter. Don't overwhelm your Web site viewers with a bunch ofproducts on the first page; you need to sell a solution to them.Whether you're peddling jewelry or public relations services,convince your buyers how you can make their lives easier. That way,"you're or-ganizing your company around customers ratherthan around products," says Reid Smith.

Reward the loyal. Don'tlet your best customers feel undervalued. You (hopefully) know whothey are-the people who buy your stuff time and time again. SaysReid Smith, "30 percent of your customers could be [incurring]70 percent of the sales." You want to entice that exceptionalcustomer, not just the average one. Poll them to see what theywould like to see on your site. Traditional research can sometimesbe misleading-you'll learn what the average Joe wants, but notwhat the super-loyal Jane wants. "The value of keeping aloyal, high-value customer is so much larger in terms ofprofitability than a low-value customer," says Reid Smith.

Be at their service. Investas much as you can afford in terms of customer service. If thatmeans hiring more customer service reps or buying a better phonesystem to facilitate your customer calls, do it. "Scrimping oncustomer service is not the way to build loyal customers,"says Reid Smith. Note: In order for your customers to come back,they have to have, at the bare minimum, decent service. But if youwant them clamoring for more of your product or service, make suretheir experience exceeds what your competitors offer.

Make it hard to leave. Thatdoesn't mean a lengthy checkout process, of course; just afabulous site-with the best product, service, price, fulfillmentsystem or whatever-that makes defecting to another siteunthinkable. Harness anything that can set you apart from thecrowded Net marketplace. "[Make customers] realize that toleave this supplier or vendor or retailer or Web site, 'I'mgoing to have to give up XYZ to do it, and I'm not willing togive that up, therefore I'm going to stay,' " explainsReid Smith.

The most important thing to remember, though, is to create yourcustomer loyalty program in the early stages of designing your Website. "That's probably one of the biggest mistakes,"warns Reid Smith. "Most people try to hire me once their siteis already up, and I end up having to redesign the wholething."

Contact Source

• Ellen Reid Smithwww.e-loyalty.com