Be sure you're rewarding the right customers and not penalizing the loyal ones. Often companies get so wrapped up in trying to allure new customers or persuade those teetering on the edge of loyalty, that long-term customers are overlooked and their loyalty taken for granted. The same can be said for rewarding employees who grab short-term profits or granting higher salaries to keep those who find jobs at other companies.

Woo the ones that want you (employees and customers alike). Pursuing customers who are unsure about your business or who are sure that you're not right for them is an expensive and often fruitless exercise. Like any relationship, you cannot take your partner for granted. Romance the ones that want you. This will surely set the stage for a long-lasting relationship. We believe strongly in the merits of applying 80/20 analysis to all aspects of your business and this is no exception.

Coffee houses, beauty or nail salons and bakeries have great incentives for loyalty. Customers are given a punch card and after a certain amount of coffees or pedicures are purchased, customers are rewarded with a free coffee or service.

Credit card companies have also caught on to the importance of retaining customers. For so long they have been trying to lure customers away from the competition with lower APR rates. Now many companies are making a habit of offering low APR rates to existing customers as a way of keeping them. They also have invested large amounts of money to simplify the payment and purchase-tracking systems, so customers can quickly go online and handle their business.

Conversely, consider the mistakes of the telecommunications companies that delight us all by calling every night at dinner to offer us "so many free minutes" when we switch to their company. Ironically, as a long term customer of several telecom companies I have been offered none of these wonderful incentives and have experienced less than exceptional service. What they are actually doing is rewarding us for a lack of loyalty. If I continually switch telephone carriers I'll be rewarded with bonus minutes, free telephones and more. Yet, when I stay put I am rewarded with nothing more than the convenience of not having to switch telephone carriers.

Or consider the case of the professional printing house who, in order to meet their sales budgets would offer heavy discounts to new customers, but never to old ones as that might impact their profit targets for the following year. Put yourself in the shoes of the old customers - if after many years of loyalty you discovered you were being rewarded by being made to pay full price when the new-comers were getting serious discounts, how might you feel about looking for a new printer?

Woo the ones that want you - think 80/20

Romance is never easy, but it sure is easier when you're a wanted suitor. Here are some tips that you can implement in your own business.

-          Offer an appropriate incentive for repeat business. Offer a free service or product after a certain amount of purchases or visits.

-          Get to know your regular customers and make it easy for them to patronize your business. Think before they have to. Use what you know about them to offer the appropriate product or service. For example, if you know a client is about to have a baby, suggest some financial planning services to make sure the child gets a college education. A hairdresser with a client who wants to try something new but is frightened by anything too drastic would be wise to suggest a temporary color wash. She can try it out for a while and wash it out if she hates it. These suggestions let customers know that you're thinking of their best interest and not just trying to increase your bottom line.

-          If you are offering prospective customers a free gift or some other incentive, consider making the same offer to existing clients. Not only will it set you apart from the rest of businesses, it provides an opportunity for repeat business.

-          Find ways to acknowledge repeat visitors and let them know you appreciate their business. For example, send a thank you note or a coupon. Consider having a wall of fame area or a community corner to hang photos of customers.

-          Provide an opportunity for customers to give you feedback and then let them know when you have implemented their ideas. Avenues for feedback range from a suggestion box, a wall in a restroom, a corner of your web site, an organized meeting with regular clients where a facilitator solicits their ideas and complaints.

-          It's not enough just to provide an avenue. You have to commit to responding to the feedback, implementing an idea or offering a plausible and reasonable explanation as to why something can't be done.