Market

 BUILDING CUSTOMER TRUST AND LOYALTY

  

















The idea
Harley-Davidson overcame a turbulent past by building customer
loyalty—one of its most enduring assets. It was one of America’s
foremost motorbike manufacturers but, by the 1980s, sales fell
dramatically following tough competition from affordable, high quality Japanese machines. Harley-Davidson improved quality
using the production techniques of Dr. W. Edwards Deming. The
next challenge was to win back, and maintain, market share (it now
enjoys a customer loyalty rate of 90 percent).
Knowledge of customers’ needs and appealing to customers’
emotions helped Harley-Davidson to build trust and bond with
customers. Their managers meet customers regularly at rallies,
where new models are demonstrated. Advertising reinforces the
brand image, to promote customer loyalty. The Harley Owner’s
Group (HOG) is a membership club that entrenches customer
loyalty, with two-thirds of customers renewing membership.

Significantly, Harley-Davidson ensures customers receive benefits they value.
The result is that customers trust Harley-Davidson; this trust is
used to develop stronger bonds and greater profits in a virtuous
circle. RichTeer link, former chair, commented, “perhaps the
most significant program was—and continues to be—the Harley
Owner’s Group (HOG) . . . Dealers regained confidence that Harley
could and would be a dependable partner . . . [And] capturing the
ideas of our people—all the people at Harley—was critical to our
future success.”

In practice
•  Deliver customers a consistent (and ideally a “branded”)
    experience each time they deal with your business.
•  Be clear about the value proposition—what you are offering
    customers.
•  Provide incentives for new customers to return and reorder.
•  Reward loyalty for established customers.
•  Be competitive—what seems like a good deal to you may not match your competitors.   
•  Make the customer’s experience as easy and enjoyable as
    possible.
•  Reassure customers with a reliable service and product offer.
•  Continuously improve the process, based on customer
feedback.
•  Deliver reliability by working with partners and investing in
resources.



Digital Marketing Agency-Nikulsan Technologies