Once that new customer makes a purchase, loyalty and repeat purchases are key to profits. As long as customers remain satisfied and interested in the product offerings, then they will return for repeat purchases and thus the merchant finds the formula for success in retailing. Merchandise selection, profit margin, transaction frequency, purchase volume, and other factors obviously affect the specific value of customers, but their impact is undeniable. Said Neil Kugleman, of Goldspeed (www.goldspeed.com), "It costs a great deal to acquire a customer, so once you've got one, whatever you can do to make it right is worth it."

Goldspeed, one of many successful Yahoo Store merchants, has some top tips to improve loyalty for those key customers.

Excel at Customer Service
For Kugleman, CEO of Goldspeed, an Internet-based jeweler, the unfortunate reality is today's standard for customer service is low. But, that means that a small business can stand out simply by doing many of the little things right. "When they get a phone answered on the first ring by someone who can help them and speaks intelligently, it makes a big difference," he said. "Most people are nice and decent. They like the personal service."

Kim Michaux, who runs seven Yahoo Stores (www.OneofaKindKid.com, www.SnipsnSnails.com, www.GigglesnCurls.com, www.CradlenCrib.com, www.MistletoenHolly.com, www.OldWorldNutcrackers.com, www.CollegeTeamShop.com), couldn't agree more. She sees the key to her businesses as prompt email and telephone outreach. "Customers are always shocked when you answer right away," said Michaux. So by responding promptly you can exceed expectations and delight your customers.

Personalized attention is another way to differentiate your service and gain customer loyalty. As a merchant with access to relevant information you can acknowledge a repeat customer and thank them for returning to shop with you, offer suggestions for additional products to compliment what they have already bought, and always ask, capture, and act on their feedback. These seemingly small and incremental elements equate to special attention, and customers welcome the personalized service.

Still others customers prefer the speed and efficiency of checking the status of an order, or confirmation of a return directly themselves. By offering choices and the flexibility for self service you allow customers to interact with your organization at their pace and comfort level, and with on line, self service you can also minimize costs.

Empower Your Employees
Having good people on the customer service front lines is crucial, but equally important is giving them the tools and authority to make customers happy. The customer service representatives for Michaux's stores thoroughly know the product lines for which they are responsible and are afforded the flexibility to offer free or upgraded shipping when the situation requires it.

At Goldspeed, Kugleman's goal is to have customer problems resolved on the first call or email. If the situation needs to be escalated, all pertinent details flow from one person to the next. "There's nothing worse as a customer than telling the whole story and then having to tell it all again," he observed. For Goldspeed, the result is a host of happy customers who go the extra mile to write letters in praise of the company's knowledgeable and responsive customer service representatives.

Other merchants empower customer services representatives to recommend alternative products if something is out of stock, and also provide service representatives the ability to include an additional item if there is an issue with an exchange. Access to information and the ability to flexibly execute within a dynamic environment will allow you to surpass customer expectations who would otherwise walk away disgruntled.

Know Where You Stand
Central to being able to provide superior service is the ability for customer service representatives to get a detailed snapshot of the customer's history with the company. For both Kugleman and Michaux, the e-commerce solution must contain accurate, up-to-date information so the problem can be resolved appropriately, and the customer has confidence in your ability to service them consistently.

With multiple call centers in different time zones, Kugleman's personnel remain up to date with customer situations using a single system. "You may want to provide great customer service, but you can't unless you have the infrastructure to pull it off," said Kugleman. OrderMotion, the system Goldspeed leverages, allows customer service representatives to see the complete history of the customer in real time and provide rapid and easy access to inventory information. With all this information available, Goldspeed is able to understand what's working for customers as well as measure and improve operations to continually advance.

Execute Flawlessly
In the end, of course, every component of every business has to run without errors. Double and triple checking everything is part of Michaux's success as well as a process that works for her organization.

Still, she combines it with acceptance of the reality that mistakes do happen. "When that does occur, it's a great opportunity," she says. "If you fix a mistake quickly and nicely, you can really turn a customer into a very loyal customer by going the extra mile."

And hopefully that customer will share their experience and encourage others to become customers as well.