By Rhonda Abrams, USA TODAY
In this economy, when small-business owners ask me what to do to survive, I always advise, "Whatever you do, make sure you do whatever you can to keep your current customers."
Customer retention is absolutely critical. That's why I'm embarrassed to admit that I just lost a major customer. And for the dumbest reason: We just failed to stay in touch with them regularly.
Now keep in mind that this is a customer — a good-size university — who loves our books. For years, they've sung our praises. On my list of satisfied customers, they were right there at the top of the list. It wasn't until we noticed — took way too long to notice — that we hadn't been getting orders that I picked up the phone to find out what happened. Another company (with an inferior product, I might add petutantly) had pursued them — "they really wanted our business," my contact told me.
Can we get them back? Yes, possibly. But it's going to take work. And we'll have lost a lot of money at a time when every dollar counts. And it was completely unnecessary. Don't let this happen to you!
Whether you call it customer retention, account management, relationship management, or just staying in touch, developing a strategy so that you don't lose the customers or clients you have is vital to the success of any business — especially now.
First, remember it's more expensive to acquire a customer than to retain a customer one. And your past customers are the ones who are most likely to be future purchasers. They've already shown they want and like your products or services and are willing to pay.
This economy makes customer retention strategies even more important because customer loyalty is weakened. Whether you sell b-to-b (business to business) or b-to-c (business to consumer), your customers are going over their budgets carefully; they're looking for alternatives. And with the pace of technological change and more ways to communicate (blogs, Twitter, Facebook), they're even more likely to be more exposed to your competitors.
That means you need a customer retention plan. Keep in mind that it doesn't need to be costly, time-consuming or difficult. You just need a few simple steps and always make it a priority:
1.Contact your top customers or clients regularly. Make a list of your top customers, at least 10-25. Call them each at least quarterly. Take the best ones to lunch or dinner — even if that means you have to hop a plane.
2. Keep your name in front of all your customers. Advertise regularly. Network regularly. Send e-mail newsletters regularly. The key is doing this regularly.
3. Give your current customers good deals. We're all used to come-on deals to attract new customers, but we then fail to offer similar discounts to current customers. Remember, your competitors are targeting your customers with deals.
4. Surprise them! Do something special and unexpected for some of your best customers. Send them a small gift. Add something extra to their order.
5. Keep track. Get a database, contact manager, digital address book. I'm always surprised by the number of businesses — especially small businesses — that do not have a good database of their past customers. Find a way to keep track of all your clients — past and present — so that you can easily and quickly contact them.
6. Communicate, communicate, communicate. All of us, myself included, take our customers for granted. As a result, we get so focused on doing our work, that we don't take enough time out to meet with, talk to, and more importantly, listen to, our customers. Stay in touch. Ask them what they need and want. Be part of their lives and businesses.
What about me and the customer I've lost? I'm getting on a plane and going to see them. I'm going to offer them extra-special service to get them back in my fold. And I'm going to be doing a whole lot of other business travel and phone calls in the next few months. I've learned my lesson. After all, a customer is a terrible thing to waste.
Rhonda Abrams is president of The Planning Shop, publisher of books for entrepreneurs. Her newest book isSuccessful Marketing: Secrets & Strategies. Register for Rhonda's free business tips at www.PlanningShop.com.For an index of her columns, click here. Copyright Rhonda Abrams 2009.
Friday, May 29, 2009
Friday, May 22, 2009
Godiva Offers Loyalty Members a Taste of the Good Stuff
By Brian Quinton for P&I
Luxury candy maker Godiva Chocolatier is launching its first loyalty program this spring, the Godiva Chocolate Rewards Club, offering fans of the confection free gifts and chocolate monthly for spending in Godiva retail stores, and free standard shipping for online orders.
Membership in the Godiva Chocolate Rewards Club is free. Registrants over 18 can sign up by providing a valid e-mail address. Godiva will use the e-mail opt-in to send notice of special offers and new product announcements.
Alternatively they can sign up at any U.S. Godiva Boutique by volunteering their e-mail address. The new members will then receive a membership card and can go to the Godiva Web site and enter their account number to activate their membership.
In exchange for that personal e-mail information, Godiva Chocolate Rewards Club members will be able to claim a free piece of Godiva chocolate every month from their nearest U.S. Godiva Boutique. The company operates 450 of these standalone boutiques around the globe. Members won’t be able to claim their rewards from the 10,000 specialty retailers who also partner with Godiva.
In addition, a single transaction of $10 or more at a Godiva Boutique in the U.S. will entitle the club member to claim a free gift reward from a participating Godiva boutique the following month. Members will be limited to one free gift a month, and will have to show their Godiva Rewards Club card or some other personal data to claim it.
Finally, members who buy chocolate or other goods from Godiva’s online store will be able to take advantage of free shipping within the contiguous U.S. To qualify at the time of their online orders, members will need to be signed into their Rewards Club account to let Godiva’s Web site look up their membership and eligibility.
To promote the launch of the loyalty program, Godiva is offering visitors who sign up for the Chocolate Rewards club a chance to win a complimentary chocolate party at their nearest Godiva boutique. The winner, chosen randomly from among those who register for the rewards club by June 12, will get to invite up to 25 friends along for an evening party of hors d’oeuvres and choco-centric refreshments at their nearest Godiva boutique. Attendees will also get to shop the store at a large discount during the party.
Founded in 1926 by Belgian chocolatier Joseph Draps, Godiva is now owned by Turkish holding company Yildiz Holding A.S.
Monday, May 18, 2009
Joining Loyalty Club #1 Way to Save
The Richmond Times-Dispatch's Accidental Chef, Kendra Bailey Morris, published her top ten cost cutting suggestions for thrifty diners. Topping the list is her recommendation to join one's favorite restaurant's loyalty program. More and more customers are expecting some kind of reward in exchange for their loyalty. Here's the full article:
DEAR ACCIDENTAL CHEF: Our family loves eating out, but since this economic nosedive, we find ourselves going out less and less. We want to continue supporting our local restaurants, and I would like time off from cooking. Any ideas on how the average family can still afford to dine out without breaking the bank? -- Hungry in Henrico
DEAR HUNGRY: I figure many of us are nodding our heads in appreciation of this timely question. Like you, we want to continue supporting our local restaurants, especially in such a questionable economic climate (they're suffering, too!), but how do we reconcile a night out on the town when menu prices seem to be increasing and portions decreasing?
The good news is, now more than ever, establishments are addressing this situation head-on. Never have I seen so many weekly specials, discounts or special promotions being offered on a regular basis. From half-off deals to $10 gift cards arriving by mail, restaurateurs are doing whatever they can to keep your business. With this in mind, if you play your cards right, you can enjoy the occasional night out on the town without emptying your wallet.
Check out these 10 cost-cutting suggestions before you make your next reservation.
1. Be a coupon clipper. Check newspaper-ad inserts or visit a restaurant's Web site to access downloadable coupons and special deals. Take a few moments to join your favorite restaurant's loyalty club online to receive additional promotions.
2. Happy-hour specials aren't just for drinks. Many eateries now offer food promotions during happy hour such as half-off appetizers and early-bird specials.
3. If you've got kids in tow, take advantage of "kids eat free" nights. Many restaurants offer weekly perks for families dining out, including discounted and free meals, usually with the purchase of at least one adult meal.
4. Go easy on the alcohol and dessert. Drinks are one of the fastest ways to run up your bill. Order water with lemon or have a pre-dinner cocktail at home instead. After dinner, enjoy ice cream or another dessert at home.
5. Take advantage of those three-course pre-theater deals (usually an appetizer, an entrée and dessert for about $25 per person). This is a great way to dine at a high-end restaurant minus the three-figure bill.
6. Do lunch or brunch instead of dinner. It's certainly not news that lunch prices are significantly lower, so take advantage of this. Instead of a Friday night dinner, take the whole family out for a relaxed Sunday brunch.
7. Enjoy your favorite restaurant at home. Grab some takeout for an intimate evening you can savor while wearing your favorite pajamas.
8. Split and share. Instead of ordering two entrées and having leftovers, split the entrée part of your meal, or order several appetizers to share as your meal.
9. Go ethnic. You can get a lot of bang for your buck dining at locally owned Asian, Mexican or Indian restaurants. While the ambience is often no-frills, a bowl of Vietnamese pho soup or a platter of tacos de carnitas will fill you up for less than $10.
10. Pay with plastic. Many credit cards offer dining rewards or cash-back bonuses for visiting certain restaurants. Be sure to join your credit card's rewards program to fully participate.
Lastly, no matter what promotions or specials you decide to partake of, always be sure to tip your server appropriately. A discounted meal doesn't mean your server worked any less.
Kendra Bailey Morris is a Richmond-based food writer, culinary instructor and author of "White Trash Gatherings: From-Scratch Cooking for Down-Home Entertaining" (Ten Speed Press). Send ideas, tips or culinary questions to info@theaccidentalchef.net or visit http://www.theaccidentalchef.net.
DEAR ACCIDENTAL CHEF: Our family loves eating out, but since this economic nosedive, we find ourselves going out less and less. We want to continue supporting our local restaurants, and I would like time off from cooking. Any ideas on how the average family can still afford to dine out without breaking the bank? -- Hungry in Henrico
DEAR HUNGRY: I figure many of us are nodding our heads in appreciation of this timely question. Like you, we want to continue supporting our local restaurants, especially in such a questionable economic climate (they're suffering, too!), but how do we reconcile a night out on the town when menu prices seem to be increasing and portions decreasing?
The good news is, now more than ever, establishments are addressing this situation head-on. Never have I seen so many weekly specials, discounts or special promotions being offered on a regular basis. From half-off deals to $10 gift cards arriving by mail, restaurateurs are doing whatever they can to keep your business. With this in mind, if you play your cards right, you can enjoy the occasional night out on the town without emptying your wallet.
Check out these 10 cost-cutting suggestions before you make your next reservation.
1. Be a coupon clipper. Check newspaper-ad inserts or visit a restaurant's Web site to access downloadable coupons and special deals. Take a few moments to join your favorite restaurant's loyalty club online to receive additional promotions.
2. Happy-hour specials aren't just for drinks. Many eateries now offer food promotions during happy hour such as half-off appetizers and early-bird specials.
3. If you've got kids in tow, take advantage of "kids eat free" nights. Many restaurants offer weekly perks for families dining out, including discounted and free meals, usually with the purchase of at least one adult meal.
4. Go easy on the alcohol and dessert. Drinks are one of the fastest ways to run up your bill. Order water with lemon or have a pre-dinner cocktail at home instead. After dinner, enjoy ice cream or another dessert at home.
5. Take advantage of those three-course pre-theater deals (usually an appetizer, an entrée and dessert for about $25 per person). This is a great way to dine at a high-end restaurant minus the three-figure bill.
6. Do lunch or brunch instead of dinner. It's certainly not news that lunch prices are significantly lower, so take advantage of this. Instead of a Friday night dinner, take the whole family out for a relaxed Sunday brunch.
7. Enjoy your favorite restaurant at home. Grab some takeout for an intimate evening you can savor while wearing your favorite pajamas.
8. Split and share. Instead of ordering two entrées and having leftovers, split the entrée part of your meal, or order several appetizers to share as your meal.
9. Go ethnic. You can get a lot of bang for your buck dining at locally owned Asian, Mexican or Indian restaurants. While the ambience is often no-frills, a bowl of Vietnamese pho soup or a platter of tacos de carnitas will fill you up for less than $10.
10. Pay with plastic. Many credit cards offer dining rewards or cash-back bonuses for visiting certain restaurants. Be sure to join your credit card's rewards program to fully participate.
Lastly, no matter what promotions or specials you decide to partake of, always be sure to tip your server appropriately. A discounted meal doesn't mean your server worked any less.
Kendra Bailey Morris is a Richmond-based food writer, culinary instructor and author of "White Trash Gatherings: From-Scratch Cooking for Down-Home Entertaining" (Ten Speed Press). Send ideas, tips or culinary questions to info@theaccidentalchef.net or visit http://www.theaccidentalchef.net.
Thursday, May 7, 2009
Five Steps To Bridge Loyalty Gap
Peter Clark, editor of The Wise Marketer, has published an updated edition of The Loyalty Guide. Below is an excerpt that deals with bridging the "customer loyalty gap".
How do you bridge the gap, then? Marketers need to learn to look at the issue from the customer's point of view, and that usually means the following:
1. Recognise that value is not the sole criteria for judging the loyalty of a customer.
2. Develop ways of identifying the truly loyal among the medium- and low-value customers.
3. Cluster customers using multi-dimensional modelling. The model will need to be built on several facets of customer behaviour (i.e. frequency of buying, engagement or depth of involvement with the brand, value of transactions, and tenure with the brand).
4. Develop a "benefits bouquet" to build and nurture relationships across the spectrum from low to the medium value customer. It is obvious that you can't spend the same amount of money on these customers as you can on higher value customers, but loyalty is not directly proportional to the money you spend: it is dependent on the care and attention you show to each customer - and that doesn't take much money at all. Simply ask yourself how you can make the customer's product experience better, and the answer will give you a range of loyalty-building tools.
5. Understand that loyalty is not just about rewards points and birthday greetings. It is the company's "burning desire" to ensure that customers get the best value for their money. And if you can translate that sentiment into suitable behaviour among employees - so that every customer gets the greatest attention they can get every time they go shopping - then the chasm will begin to close.
This article is an extract from the 36 chapters of detailed coverage in 'The Loyalty Guide III', which is The Wise Marketer's latest 920 page global guide to customer loyalty programmes, techniques, practices and theory. The report is available now, worldwide, for £1150 (approx. US$1995 or Euro 1495). See TheLoyaltyGuide.com for the free executive summary, downloadable chapter samples, table of contents, online searching, and online ordering.
How do you bridge the gap, then? Marketers need to learn to look at the issue from the customer's point of view, and that usually means the following:
1. Recognise that value is not the sole criteria for judging the loyalty of a customer.
2. Develop ways of identifying the truly loyal among the medium- and low-value customers.
3. Cluster customers using multi-dimensional modelling. The model will need to be built on several facets of customer behaviour (i.e. frequency of buying, engagement or depth of involvement with the brand, value of transactions, and tenure with the brand).
4. Develop a "benefits bouquet" to build and nurture relationships across the spectrum from low to the medium value customer. It is obvious that you can't spend the same amount of money on these customers as you can on higher value customers, but loyalty is not directly proportional to the money you spend: it is dependent on the care and attention you show to each customer - and that doesn't take much money at all. Simply ask yourself how you can make the customer's product experience better, and the answer will give you a range of loyalty-building tools.
5. Understand that loyalty is not just about rewards points and birthday greetings. It is the company's "burning desire" to ensure that customers get the best value for their money. And if you can translate that sentiment into suitable behaviour among employees - so that every customer gets the greatest attention they can get every time they go shopping - then the chasm will begin to close.
This article is an extract from the 36 chapters of detailed coverage in 'The Loyalty Guide III', which is The Wise Marketer's latest 920 page global guide to customer loyalty programmes, techniques, practices and theory. The report is available now, worldwide, for £1150 (approx. US$1995 or Euro 1495). See TheLoyaltyGuide.com for the free executive summary, downloadable chapter samples, table of contents, online searching, and online ordering.
Wednesday, May 6, 2009
CVS ExtraCare new savings
CVS/pharmacy, America’s largest retail pharmacy, today announced a special promotion called “Double My Bucks!” that offers double Extra Bucks rewards to customers purchasing prescriptions from May 1 through June 15 at any of CVS/pharmacy’s more than 6,900 locations. By simply presenting a Double My Bucks! certificate along with their ExtraCare card, shoppers will receive $2 Extra Bucks for every two prescriptions filled.
By using an ExtraCare card, CVS/pharmacy shoppers earn Extra Bucks rewards on nearly all purchases. Extra Bucks are like free CVS money. Throughout the year cardholders earn 2% back on non-prescription purchases and $1 Extra Buck for every two prescriptions purchased. Some Extra Bucks offers are instant coupons that print when you purchase specially advertised products, and quarterly Extra Bucks rewards are issued to cardholders in their first visit in January, April, July and October. These rewards are issued to cardholders at the end of each quarter on the bottom of your receipt and by email to cardholders that have provided an email address at CVS.com.
CVS/pharmacy’s ExtraCare program is the largest retail rewards program in the nation, with more than 50 million active cardholders. Enrolling in ExtraCare is easy and takes less than two minutes in-store or online at CVS.com. The program is free and members receive benefits such as money-saving offers on register receipts in addition to Extra Bucks rewards and instant Extra Bucks. ExtraCare cardholders can also provide their email address with their secure account online, to receive special savings and health & beauty information directly to their email inboxes.
To learn more about the program, consumers can visit http://www.CVS.com/ExtraCare.
Source: CVS
By using an ExtraCare card, CVS/pharmacy shoppers earn Extra Bucks rewards on nearly all purchases. Extra Bucks are like free CVS money. Throughout the year cardholders earn 2% back on non-prescription purchases and $1 Extra Buck for every two prescriptions purchased. Some Extra Bucks offers are instant coupons that print when you purchase specially advertised products, and quarterly Extra Bucks rewards are issued to cardholders in their first visit in January, April, July and October. These rewards are issued to cardholders at the end of each quarter on the bottom of your receipt and by email to cardholders that have provided an email address at CVS.com.
CVS/pharmacy’s ExtraCare program is the largest retail rewards program in the nation, with more than 50 million active cardholders. Enrolling in ExtraCare is easy and takes less than two minutes in-store or online at CVS.com. The program is free and members receive benefits such as money-saving offers on register receipts in addition to Extra Bucks rewards and instant Extra Bucks. ExtraCare cardholders can also provide their email address with their secure account online, to receive special savings and health & beauty information directly to their email inboxes.
To learn more about the program, consumers can visit http://www.CVS.com/ExtraCare.
Source: CVS
Feldman: Drip Marketing Interview
| The Database Diva, Lori Feldman, posted a |
Friday, May 1, 2009
Certified Oil Expands Loyalty Program to Grocery Stores
-By Convenience Store News Staff
Certified Oil Co., operator of gas stations and convenience stores in Ohio, is expanding its “Certified Savings Program,” a three-level customer loyalty program, to grocery stores, the company reported.
The program is being offered to grocery chains, as well as independent-owned grocers, in and around Columbus, Ohio, and will eventually expand to other geographic areas.
"The program provides a low cost solution to enable grocery stores to provide market basket rewards to build sales," said Wayne Wills, Certified’s merchandising director, and a former grocery industry manager. "Grocery partners will also enjoy additional traffic driven to their stores from our existing cardholder base."
Certified Savings has been available in seven Certified stations for the last few months, and by extending it to grocers and their customers, the company hopes to develop and maintain loyalty among current and future customers, while financially rewarding customers for their continued patronage, according to the company.
Through this new program, grocery partners will be able to reward customers with Certified Savings points to obtain fuel discounts of up to $1 per gallon at participating Certified Oil locations. Unlike other programs that require complete point-of-sale system integration, Certified Savings requires minimal upfront costs, the company reported.
The program will also benefit grocery partners by increasing their customer base as Certified Savings is being expanded to other retail partners such as restaurants, drug stores and movie theaters, and those customers will also be directed to shop at participating grocers.
"By adding a variety of quality partners, Certified Savings card holders will be able to quickly earn valuable gasoline discounts for shopping at participating grocers and other retailers,” said Greg Ehrlich, COO of Certified Oil.
"Consumers are looking for bargains now more than ever before, and Certified Savings provides grocery stores with a simple, cost effective way to deliver added consumer value and grow market share."
All Certified Savings cardholders, including customers of participating grocers, are provided with benefits at Certified convenience stores and gas stations. Membership levels are as follows:
-- Level one benefits includes product discounts and automatic entry into club programs, in which customers buy a designated quantity of a product—cups of coffee, for instance—with the next one being free. At this level, members are rewarded with points on their purchases and redemption options that include gasoline discounts and free merchandise.
-- Level two (which also incorporates level one) cardholders are provided the option of receiving two cents off per gallon of gasoline for enrolling their card for Automated Clearing House (ACH) payment. The ACH debit payment plan allows the cardholder to transfer funds by authorizing a party (Certified, in this case) to electronically withdraw funds from the cardholder’s checking account. This basically converts the loyalty card into a payment vehicle similar to a debit card, but with significantly lower processing fees, enabling Certified to pass on some of the savings.
-- Level three (which includes levels one and two) cardholders are offered three cents off per gallon of gasoline for paying cash. The Certified Savings program is Ohio’s first multi-merchant coalition program for service stations providing consumers with gas rewards.
Source: Csnews.com
Certified Oil Co., operator of gas stations and convenience stores in Ohio, is expanding its “Certified Savings Program,” a three-level customer loyalty program, to grocery stores, the company reported.
The program is being offered to grocery chains, as well as independent-owned grocers, in and around Columbus, Ohio, and will eventually expand to other geographic areas.
"The program provides a low cost solution to enable grocery stores to provide market basket rewards to build sales," said Wayne Wills, Certified’s merchandising director, and a former grocery industry manager. "Grocery partners will also enjoy additional traffic driven to their stores from our existing cardholder base."
Certified Savings has been available in seven Certified stations for the last few months, and by extending it to grocers and their customers, the company hopes to develop and maintain loyalty among current and future customers, while financially rewarding customers for their continued patronage, according to the company.
Through this new program, grocery partners will be able to reward customers with Certified Savings points to obtain fuel discounts of up to $1 per gallon at participating Certified Oil locations. Unlike other programs that require complete point-of-sale system integration, Certified Savings requires minimal upfront costs, the company reported.
The program will also benefit grocery partners by increasing their customer base as Certified Savings is being expanded to other retail partners such as restaurants, drug stores and movie theaters, and those customers will also be directed to shop at participating grocers.
"By adding a variety of quality partners, Certified Savings card holders will be able to quickly earn valuable gasoline discounts for shopping at participating grocers and other retailers,” said Greg Ehrlich, COO of Certified Oil.
"Consumers are looking for bargains now more than ever before, and Certified Savings provides grocery stores with a simple, cost effective way to deliver added consumer value and grow market share."
All Certified Savings cardholders, including customers of participating grocers, are provided with benefits at Certified convenience stores and gas stations. Membership levels are as follows:
-- Level one benefits includes product discounts and automatic entry into club programs, in which customers buy a designated quantity of a product—cups of coffee, for instance—with the next one being free. At this level, members are rewarded with points on their purchases and redemption options that include gasoline discounts and free merchandise.
-- Level two (which also incorporates level one) cardholders are provided the option of receiving two cents off per gallon of gasoline for enrolling their card for Automated Clearing House (ACH) payment. The ACH debit payment plan allows the cardholder to transfer funds by authorizing a party (Certified, in this case) to electronically withdraw funds from the cardholder’s checking account. This basically converts the loyalty card into a payment vehicle similar to a debit card, but with significantly lower processing fees, enabling Certified to pass on some of the savings.
-- Level three (which includes levels one and two) cardholders are offered three cents off per gallon of gasoline for paying cash. The Certified Savings program is Ohio’s first multi-merchant coalition program for service stations providing consumers with gas rewards.
Source: Csnews.com
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