If a customer can get a product or service just the way he or she wants it (customized,) that customer is likely to come back right? So, as a small business, how do you manage that? You can't stock your shelves with 100 varieties of shampoo (niche marketing), or follow-up with every customer at home (telemarketing). Customization simply means giving customers a reason to interact with you so you can learn what they need, and you can stock the right products accordingly.
What about commodities (products that are the same for everyone?) A customer is unlikely to be any more loyal to a drinking water supplier who says, "Good news, Mr. Smith! We have a shipment of drinking water just the way you like it," than he is to the supplier down the road who is selling drinking water for a lower price this week.
The secret is that even if your products can't really be customized (water is water), you can still provide a service that locks in customer loyalty. For example, the drinking water supplier might offer Mr. Smith a free gallon of water, every third time that he comes for a refill. The vendor would keep track of Mr. Smith's refill activity - and automatically know when he was due for a freebie.
Who Has It Worked For?
A successful example is a small family business called Johnsons Gas-n-Go - a country store with several gas pumps out front. Johnsons isn't in the best location, nor does it have the least expensive gas. Yet, they manage to do more business than any other gas station in town. How? Simply by giving customers more than they ask for. Every morning they offer free muffins, coffee, and tea to patrons who fill their gas tanks. Every afternoon and evening, they offer free cookies and coffee to patrons who fill their gas tanks.
The cost of offering those amenities is insignificant compared to the amount of business they draw because of it. Going the extra mile for the customer shows up tenfold in the Johnsons' return of investment.
Next Topic: Know Your Customers - Keep Your Customers