Free Umbrellas-Except for Loyal Customers10/19/15
Have you ever been irritated by a business that has a special offer available only to new customers? It is especially bothersome when the result is that the new customer is getting a better deal than than the current one. What a way to reward those who are loyal customers of a business! “New customer only” offers feel like a punishment to the loyal customers who have been frequenting a business for quite some time.
Recently I was at an event and saw a lady behind a table calling, “Free umbrellas!” I could always use a new umbrella, so I ran right over. Well come to find out, the only people who were getting umbrellas were new customers for the company and unfortunately, I was already a customer.
Whether intended or not, these offers send a clear message to your loyal customers. That message is that you care more about landing a fresh customer, and that you take for granted that you need not worry about spending any time or attention retaining your long-time advocates. Cable and internet companies play this game all the time, it is yet one more reason we hate them.
Current customers are already buying your goods and services, giving you plenty of reasons to invest in this group. Current customers are also a source of additional revenue. Loyal customers are much more profitable than your average customer with your top loyal 10% spending three times more per purchase. On average, it will take you nine first time customers to get the conversion of one repeat customer.
In a world where consumers are bombarded by brands offering great deals to lure them away from the competition, it should be a no-brainer to make sure you let your customers how much you value them. And the worst thing you can do is send a message that you care less about them than a fresh new customer.
It is very expensive and time-consuming to get new customers- the payoff comes in retaining them longer and increasing the lifetime time value. The bonus is that these are are the same customers who will tell friends and family about how well- or poorly- you treated them
Consumers want to spend their time and money where they are appreciated and valued —Are you taking advantage of that opportunity?