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How Rewards Effect Customer Loyalty

Loyal Customers Want to Be Rewarded

A current (January 2016) article in Marketing News magazine, a publication of the American Marketing Association provides a summary of a larger study on the effects of customer loyalty on retail pricing.  In the “The Buzz“, an insight into scholarly study “Willing to Pay More, Eager to Pay Less: The Role of Customer Loyalty in Price Negotiations” shows some interesting information on offering discounts to customers.  In essence, offering continuous discounts to clients creates a “downward spiral” of pricing.  This means that the more discounts you offer a customer to maintain repeat business lowers your profit.  The article also states that “Loyal customers want to be rewarded, but rewards don’t have to be discounts”.  How can you be creative in your marketing efforts to reward your clientele without giving them discounts?  Easy!  The study shows that “free gifts”…. stand as effective gestures to customer loyalty”.  There are lots of ways and price points to give gifts.  

  • Promotional Gifts
    • Promotional products can serve two purposes for your business.  They can be branded with your company information while at the same time, be a free gift and hopefully be a useful item that will be used and/or seen daily
  • Executive Gifts 
    • Want to offer something a little, nicer, a little more perceived value, this category offers tons of ideas within your budget but can look and feel much more expensive that they are
  • Personalized Gifts
    • These are very, very cool.  You can personalized each gift with your logo AND the clients name and/or company.  Click here to see an example
  • Incentive Gifts
    • There are the Granddaddy of gifts.  These can be Top Brand/Name Brand Merchandise that can be branded and unbranded for your customer.  You can purchase the products as one-offs or create a branded web site where your customers can orders these types of gifts using a code you give them.  You can even give codes out that work for different price points.  C

All in all, giving your clients gifts is a perfect way to gather continuing loyalty from your customers. 

Sometimes it’s the Little Things

My wife and I just returned from Hawaii… I know, I’m a bragger… but actually we received the trip free as a sales award for my wife from her company Silpada Jewelry! Silpada always goes out of it’s way to give the top 4% who earn this award the best on the annual “SOAR” trip and even more to the 1% who earn the upgrade each year like my wife.

But sometimes it’s the little touches that matter and you remember. This year we walked into our room at the Waikiki, walked to the window and looked out on the beautiful beach and ocean from a high floor, but what we remember was the bathtub. Silpada had the hotel staff “paint” the word “Aloha” and the Silpada logo. Pretty simple huh? But memorable and probably free or very inexpensive to do.

So the question is, what little things can you do  for your clients to be memorable? Something as simple as a handwritten thank you card (yes, handwritten), maybe some donuts, flowers, something cool and useful. What have you done to impress a client?  Let me know.

I Feel the Need for Speed!

Speed Baby! More power Scotty! Go Speed Racer Go! Quickness is one the the hallmarks of a great company. How fast (and of course correctly) you perform a job is all important to your customers these days. We as a society are being well groomed to want it now not later. Nothing more illustrates how well a company can do this especially in this busy holiday season than Apple.

I needed a new charger for my iPhone 5 (having lost the new one within two days of buying it) and was in and out of the Apple Store (and you know how buys they get normally but during the holiday season… ouch!) How you ask? At the front of the store was a long table with the most popular Apple products including my charger. I grab one, the girl scanned it with her iPhone, swiped my credit card with an added devise on my iPhone, e-mailed me the receipt and I walked out of the store in under 1 minute. WOW!

Apple iPhone 5

So the lesson and the question is, “How can you do things faster for your client… with and without using technology?”

Can you:

  • Supply faster quotes/pricing?
  • Deliver faster?
  • Answer questions faster?
  • Eliminate the hassles so transactions with customer flow faster?
  • Answer the telephone, e-mails, contacts faster?
  • Acknowledge a client faster?

Right now…. pick one thing you think you and/or your company can make faster… and do it.