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Rewarding Long-Term Customers

Monday, December 05, 2011   By Mike Reddy

 



Customer loyalty is not to be overlooked - at any time of year - but during the holiday season it is opportune to show a little extra appreciation for those who keep your business alive.

Depending on what research you look at, selling a product or service to an existing customer can be five to eight times more profitable than selling the same product and service to a new customer.

Think about the contribution your long-term customers have made to your business over the period they have been dealing with you. It can be quite considerable. So it makes sense to try to keep your existing customers happy.

Take another look at your marketing priorities and make sure that you have allowed financial and time resources to properly care for your most profitable customers - your long-term ones.

Insert cards or vouchers with their regular purchases or even change the signature panel on your email template to include a holiday message.

Another tip is to forge partnerships with other local businesses, and offer service/product trades as a reward. If you sell paper, join up with an ink supplier and offer cross-business discounts or gifts as a holiday incentive.
 
You can not only improve relationships with your suppliers but also keep your long-term customers happy with something they were not expecting.
 
Start the New Year by promoting a carefully designed customer rewards system. With our exclusive RAN ONE tools and resources we can help you here.
 
Offer your dedicated clients an incentive for their loyalty. With the technology available today these systems can be relatively easy to implement. Award points for purchases that can be redeemed at the end of a quarter for discounts or small gifts.
 
Factor in a small budget for the year that is dedicated towards the program and set aside inventory at the start of the year if necessary.


Mike Reddy is a Chartered Accountant, business coach and advisor helping businesses in Sydney, Melbourne, Brisbane and Gold Coast to easily increase their profits and cash flow. He is currently President of the North Sydney Chamber of Commerce, a Regional Councillor for Sydney North East and a member of the Institute of Chartered Accountants Sydney leadership team. As well as advising businesses, Mike presents business development seminars and webinars and is regularly contacted by the media to comment on small business matters. You can connect with him on Facebook, Twitter and Google+.