ould heed because business practices that disrespect existing customers and take their loyalty for granted risk losing them to competitors. There is nothing more infuriating to a customer to see someone new receive a better deal than them when they have been loyal and often ignored competitive offers. Relationships matter As Price points out, introductory offers and special deals to recruit new customers not only irk existing ones but are often also costly and less profitable than initiatives that focus on their current customer base. Price contends that many retailers are obsessed with chasing new customers when a 5 per cent improvement in the retention rate of customers they already have could boost profits by between 25 and 95 per cent. Recruiting new patrons is clearly a legitimate marketing objective because there is an inevitable attrition in the customer base of a business over time, but the challenge is to lure new buyers without offending those that are already customers. Customer loyalty is a first line of defence in the prevailing competitive retail market conditions, yet many retailers take shortcuts and fail to develop a genuine relationship with their customers. Reporting an 8.7 per cent lift in same-store sales for the first four months of the current half, Shaver Shop has announced it will launch a customer relationship management platform in the coming months. Cameron Fox, CEO of Shaver Shop, said the CRM solution is expected to significantly enhance the chain’s ability to engage with customers on a more personalised and timely basis across any retail channel. Fox said the CRM platform, which is provided by Salesforce, will deliver a “quantum lift” in its already 120,000-strong customer database and will also enable the retailer to offer a loyalty program in future. Fox said Shaver Shop’s investment in Salesforce represents a commitment to omnichannel retail, with online sales now reaching around 11 to 12 per cent of total revenue. Shaver Shop does have some two-way, non-transactional engagement with its customers through a blog feature on its current website, but it needs to be careful not to fall into the same trap as some other retailers that think CRM is only about online sales. Too many retailers have no genuine relationship with their customers, despite investing in CRM platforms that can help them to retain those customers and increase their purchases to the benefit of bottom-line profits. I do not regard emails from retailers that simply promote price promotions as the basis of a relationship. Retailers need to work harder if they want me to keep me engaged, it harks back to the old adage: sell the sizzle not the steak. Keep the website interesting To harness the power of the internet, retailers also need to rethink their websites which are too often product and price catalogues with limited investment in engaging and developing a relationship with a customer. Many potential customers know as much or more about the products they intend to buy than the sales staff in the store. Yet too many retailers miss the opportunity to provide useful product information and to establish their expertise on their websites – let alone to add content of interest to customers that is not simply about what the retailer wants to sell. Blogs are worthwhile, especially if they capture positive customer experiences and endorsements. Better still are the features that retailers like Kathmandu and Rebel include on their websites which advise customers on how to use products, events, destinations and customer stories. Kathmandu’s Summit Club is not just a loyalty shopping card but a platform that attempts to establish brand credibility and a shared interest in the pursuits of customers. It does more to build a relationship and retain customers than incessant emails promoting discount sales. The important thing to remember about CRM is that the relevance and value of the relationship is defined by the customer, not by the retailer.