Customers are the vital link in all business. Customers' likes and dislikes determine the saleability of the products and hiring of services of any business firm. Therefore, one can term customers as the kingmakers of the market. Therefore, it is important to have a good loyal customer base for any company to survive in this globalized competitive business era. For that, companies need to develop good relationship with customers. It will not emerge out of blues a day. There is a concentrated effort required for building good relationship with customers. Developing relationship with existing customers and potential customers are equally important if the company want to improve sales, profit margin, and customer base.

Customer loyalty is more of an emotional attachment. The approach of the salesperson or service provider will be key factor in creating customer base. Research stats shows that 20 % of the customers account for the majority of the buying in the case of repeat business. During sales interaction, the sales person gets to know about the personality, needs, as well as interests of the customer. If the sales person can build rapport with the customer in long-term, repeated business with that customer will be possible. If good relation not built, there is every chance for loosing a customer to another competitor who provides similar products or services. It is important to let the customer know how much you appreciate and value him or her regularly. Make the existing customers happy and loyal by sending emails or postcards sometimes for thanking them for choosing to do business with you. Customers might like this gesture and chances are more that they remain loyal to the company. When you are releasing a new service or product, let these loyal customers be the first ones to be informed. If you can give them special discount prices for being loyal, certainly it will be great.

It is easy to think that, it is not worthwhile to pay attention to the section of people who does not do anything presently with the company regarding business. However, it is a big mistake, as anyone can be a potential customer any time. Potential customers are a new source for increasing the customer base and they are the future partners vital for the business. It will be foolish to think that existing customer base will remain like that. It is always brighter to look for new customers for increasing customer base in order to gain more .Otherwise business will remain saturated and chances for erosion of existing customer base is always there. Therefore, companies should target potential customers with newsletters and ads to lure them towards it. Many of them might know about your services or products, but did not buy anything until now from you. It is a good ploy to intimate them that they are always welcome for doing business with you. Providing them with some samples to feel the quality of your services products will be a good step to convert some potential customers to loyal customers. Addition of new customers will balance any erosion in existing customer base, also takes forward company towards new heights. If a company can develop good relationships with existing customer base and potential customer base, it can sustain growth for longer period.