If tough times are set to continue for a while longer, it would be logical to develop a sense of customer loyalty in patrons of your business.

Whether you own a bakery, a shoe store, sell farm supplies or build houses - these tips apply to everyone in business.

Loyal customers return to your business more often, resulting in more sales and lower acquisition costs.

Yet many businesses do nothing to encourage loyalty. Here are some simple steps to improve things.

Sooner or later, you are going to have to decide whether you want to get competitive by continually lowering your prices to beat competitors or by investing in the one advantage your competitors can't or won't replicate.

That could be the convenience you offer, your superior service or the reputation that you have.

What is superior service?

It is providing customers with service that is so exceptional, they wouldn't even think of doing business with anyone else.

Loyal customers will be much more likely to tell their friends about your business.

Therefore, not only do loyal customers spend more, they also help your business to grow by bringing in more new customers. And all this will cost you is some effort, which therefore makes it a very cost-effective proposition.

Building customer awareness, communicating your benefit message and creating customer loyalty takes time.

By offering your customers superior service, you will succeed in creating rich, personalised experiences which will lure customers away from your competitors - and help you retain them year after year.

Many successful organisations have used these three steps to build customer loyalty:

*Determine mutually satisfying goals between their business and customers;

*Establish and maintain customer rapport; and

*Produce positive feelings in the business and the customers.

None of the above requires a flashy advertising campaign or a massive marketing budget.

The steps are more about providing good service, understanding your customer and delivering on the promise you make to provide goods and services.

And while we have the added benefit of operating within a country town, it is good business to practise looking after those who look after you.

If you sponsor the local footy club, or always get your car serviced at the local garage, let them know about your business and strike up a relationship where you scratch their back and they scratch yours.

*Sara Morrison is business development manager at South West Credit.