Here are five ways to generate customer loyalty -- especialy in a recession:

1) Provide more frequent progress reports: Show your customer or client the work you’ve been doing and the results you’ve achieved.
2) Get some face time: If you deal mostly by email, web-connection or phone, make an effort to meet in person.
3) Ask for feedback: Never assume a customer is completely satisfied. Throughout the work process, ask how your customer feels about what you’re doing. Then take action on any suggestions.
4) Tune your offering: As proud as you may be about your product or service, remember it’s being made or done for the customer. Make certain you know what they want, and when they want it.
5) Be open to change: Especially now, customers may want to change terms, conditions, purchase orders, payment processes or other things. Customers will appreciate if you show a willingness to work with them on adapting to new conditions.

Source: http://blogs.business.com/w...

Coincidentally I found an article yesterday on the Cisco Systems website about making every customer contact a personal one. It has 10 helpful tips for using technology to provide customized, personalized service for customers (such as having all customer data available when customers call). By making it more personal, you can provide better service, build loyalty and retain customers better. The article is called, The Basics of Serving Customers Better.

Source: http://www.cisco.com/cisco/...

Good question. I think that building an honest, personal relationship is at the core of creating customer loyalty. If there's a complaint, listen to it and own it. Don't brush it off. If there's a compliment, make sure to thank the customer. Ask for specifics in both instances.

Don't be afraid to recommend a competitor. I'm sure there will be people who disagree philosophically with this. But, my opinion is that nothing shows your honesty more than being willing to admit and accept that a competitor is offering something of value. This does several things. It shows that you have industry knowledge beyond your own realm. It shows that you are listening to your customer and recommending what is best for him or her, not what is best for your bottom line. And, because you are willing to recommend a competitor, it lends credence to everything you say, including when you recommend your own products and services.

Hopefully it is clear that you cannot fake honesty. People will see through it in a second. Doing this will kill customer loyalty and there may not be a remedy.