Does Your Small Business Have a Customer Loyalty Program?, by Myra Corrello, PhD
February 5, 2009
Why do casinos, clothiers, hotels, airlines, and grocery stores spend so much attention and resources on their “rewards” programs? Simple, it keeps their good customers coming back for more!
Keep in mind it may cost as much as six times more to sell one unit of a product to a new customer as it does to sell the same additional unit to an existing customer. Therefore, one of the most effective business development strategies is to maximize your sales with existing customers! CLPs are ideal for helping accomplish this goal. The goal here is to spend more on your best customers because the return will be much greater.
Why do CLPs work? Because:
People want to feel special
People want to be treated differently than others
People want exclusivity / “premier” access
People love accumulating “points” for special rewards
People love unexpected gifts
So, what can you learn from the big CLP players? What do they do that you can mimic? Small companies have many options!
Consider:
Partnering with a hotel, restaurant, spa, etc. to purchase discounted packages and award to customers reach X level of purchases
Exclusive showings / parties
Exclusive seminars / demonstrations
Xth visit free programs
What other elements could you incorporate into your own CLP program? What great CLP programs have you seen other small businesses establish?
Myra
Helping Individuals and Organizations Increase Their Image, Influence, and Impact
MyraCorrello.com
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