When I had a store in California, I always had a pot of coffee and free pastries for the customers. It was a rubber stamp/craft store, and there was a table full of class supplies that the customers could come in and play with all day at no charge. My feeling was to make the shop homey, give them something to eat, and make it fun to stay longer. The longer they stayed, the more often they went home with a full shopping bag and free samples they had made.
So if the LQS were mine, we'd have a pot of coffee and free snacks for the customers. There would be free BOM patterns. At least one class a month would be a free one, and it would cover a different block or topic each time. There would be a sewing area where they could sew and get free advice during the day. And of course, at least one pot luck a month. Whenever possible, I would have visiting teachers present a class, and there would be classes every weekend. There would be at least one sale a month, and regular customers would get extra coupons. Most importantly, I would ask the customers what they want to have in the store, and do my very best to get it.
It's important to have every customer feel she is the 'favorite.'