Creating Profitable Customer Loyalty Plans

One of the biggest mistakes I see entrepreneurs make in their marketing plan, is failing to include a plan that generates repeat business from their customers.  When we think in terms of new customers, our plans include advertising, social media, email, etc.  But do you have a plan in place that will help your current customers order from you again?  Better yet, do you have a plan in place for those customers to refer new business to you?  That should all be part of your “Customer Loyalty Marketing Plan”.

It cost 5 to 8 times more to get a new client than it is to get a current client to purchase from you again.  So customer loyalty should be top priority on your list.

When I started Doodads Promotional Products back in 1999, I tried everything under the sun.  Newspaper, radio, phone books (I know, ancient, right?).  After a few years of trying different tactics I looked back on my previous years and noticed that more than half of my business each year came from repeat customers.  That was a staggering amount and once I learned that, I learned that I needed to get good at keeping my current customers happy, but how?  Now, 12 years later I have a detailed plan for repeat business, and repeat business accounts for more than 65% of my business each year (even when my goal is to double my customer base, I still get MORE business from repeat clients) and I’m going to share it with you.

Here are 5 things you must know or do to have customers keep coming back for more:

1. Make Customer Service Your #1 Priority - Very few things can make up for poor customer service.  Even if you have a great product, if your customers are treated poorly they’ll find what they need elsewhere.  Put together a customer service plan.  Start by writing down all the points at which a customer interfaces with your business from the time they hit your website or store, to the actual purchase to what happens AFTER the purchase is made.  How can you show your customers that they are gold?  Make a plan for that and make sure it’s communicated well to all your employees.  Help your employees know and understand your customer service plan.

2. Thank Customers for Their Business – At the very minimum at the time of the sale, they should be thanked.  That happens verbally at a cash register or through a thank you email confirmation online.  But don’t stop there.  Send a note in the mail, reach out with a phone call, give them a promotional item or send an additional email thanking them for their business.  The higher the dollar amount of your product, the better the thank you should be.  Tell your customers through your actions that you know they have choices, and you are grateful they chose you.

3. Provide Customers A Reason to Buy From You Again Soon – Reward them for their business. Whether that is repeat customer promotions, frequent customer discount cards or bonuses, come up with something that makes your customers come back, and come back often.

4. Remember Them at Holidays & Birthdays - It’s that time of year when people send Holiday cards and gifts to thank people for their business for the year.  Don’t let the season pass by without thanking your best customers for keeping you in business.  Also, offer discounts on birthdays as another way to say, “We remember you!”

5. Relationships Matter - I learned long ago that people aren’t buying imprinted pens from me, they can do that anywhere.  They are buying the experience they get from ME.  Most of my clients have become dear friends, and that’s okay.  Now, I’m not saying that every customer should be on your BFF list, but remember that people buy from people that they know, like and trust.  If you run an online business or a store with huge traffic, you may not be able to remember everyones birthdays, but you can still be friendly in your interactions that say, “Your business matters to me.”  Return phone calls and emails.  Resolve issues quickly.  Go above and beyond when you do something wrong, and apologize for it.  Send emails that provide value and help them learn things.

Recently, I interacted with a company that really inspired this post.  Sarah Jane Studios offers a line of adorable illustrations that you can get on everything from notecards to fabric.  I’ve purchased Sarah Jane Studios products at local boutiques, and I know Sarah personally through Startup Princess (we even sat in traffic school together earlier this year .  She did the illustrations for this adorable Christmas book I can’t wait to get my hands on.  Anyway, I thought of her when I was looking for a gift for my mother, and started looking through her etsy shop.  I made my selection and then waited for the package arrive.

I was more than impressed with my package.  1. My package arrived in a timely manner.  2. The product I purchased (The “Have Joy” notecards in the top left) came wrapped with an adorable twine that makes me feel like I don’t have to wrap it, and makes my purchase look cute and festive.  3. I didn’t get a personal call, but I got an adorable “Thank You” card that I can reuse and share with someone else if I want (She thanked me AND gave me a BONUS at the same time). 4. She gave me a business card with her information if I have questions or want to make an additional purchase.  5. She took the opportunity to sell me on another product of hers (her adorable Christmas book) without making it too salesy.  And finally, 6. My receipt had a code for me to come back in January and make another purchase for a discount.  BRILLIANT.  In one package, for very little additional cost, she ensured that I was pleased with my purchase (which is HUGE, you don’t want customers to have buyers remorse) and she gave me reasons and opportunities to purchase from her, again.  A marketing and customer loyalty A+.

As you look at your marketing plan for 2012, what will your customer loyalty program look like?  How will you turn prospects into customers and customers into raving fans who buy from you over and over?

And now, the Startup Share:  What kinds of things are YOU currently doing to generate repeat business?  Share with us in a comment below and let’s help each other create loyal customers!

Michelle McCullough is the Managing Director for Startup Princess.  Michelle became a partner in Startup Princess  in 2008.  She is responsible for event planning, marketing, affiliates, sponsorships and partnerships. Over the past 3 years she has coached women entrepreneurs and helped them grow their businesses from “dream in development” to established thriving businesses.  Michelle is a speaker, strategist, success coach and a serial entrepreneur. She started Doodads Promotional Products when she was 19. And has also spent the last 12 years working in marketing and advertising. She’s worked in all aspects of the industry from production to creative and sales to management. On top of her full-time jobs, Michelle has cultivated her love for entrepreneurship by running Doodads as a successful side business. In 2008 when Michelle quit her full-time job to be home more with her newborn son, she moved Doodads to the front burner and doubled the income in 2008 and doubled it again in 2009.  Today it continues to thrive.  This year Michelle launched a coaching program called “The Life Balance Myth” to help busy entrepreneurs build thriving businesses AND meaningful personal lives.  She believes that life balance is a myth, but she provides practical tools to achieve personal and professional success.  You can learn more about Michelle at SpeakMichelle.com Michelle has 2 children under 4 and lives in Utah.

Highlights of #StartupChat “Sales Channel Discussion”

 

#StartupChat is a twitter event we host weekly to help startups grow. Join us every Wed 2pm EST on Twitter with hashtag #startupchat!

Recently we discussed online sales channels with guests who sell on eBay, Etsy, independent shops and more. Guests included @PlumDistrict, @sarahjanestudio, @ecoglominerals, @creativethurs, @mom4lifecom

Here’s highlights of the conversation:

When deciding how to sell your product or services, what should you consider?

Plum District: Consider your cost, time, and the value of a new customer. Are you interested in unloading product or obtaining new customers?

creativethurs: Choose a product that you love & inspires you that is also commercially viable

ecoglominerals: Find out who your target market is!

sarahjanestudio: Help the consumer visualize the product use. Photography & Presentation is key!

startupprincess Does your target audience (you’ve got one, right?!) want what you sell & are they willing to pay for it.

 

What benefits have you experienced from selling online vs off?

ecoglominerals: Huge benefits! I can be a work-at-home mom by selling online only. You can gain customers from around the world!

mom4lifecom: Online you are not limited by local demographics

creativethurs: Ease & privacy of selling online outweighs standing in retail space-love hearing from customers once they’ve made decision

sarahjanestudio: Selling online allows production on demand. Less $$ upfront

 

Why did you choose your specific sales channel(s)?

mom4lifecom: I stared on eBay, this allowed me to begin with a low startup cost, as business grew, I moved to a website

ecoglominerals: I’m not a fan of the fees that etsy or eBay charge, esp. when I can make my own website and cart that I like. More freedom! eBay and Etsy are great to start with as they can get you a lot of traffic! Gain a customer base first.

lepapierstudio: The more platforms you sell the better.

creativethurs: Important to remember that any online venue you choose to sell through brings exposure as well as possible sales

 

Tell us about the benefits of your sales channel(s)?

PlumDistrict: Daily deals offer a zero cost upfront marketing avenue for a business to reach a wide audience – for us moms

ecoglominerals: Freedom in webdesign, all aspects of a cart- you can choose the cart that works best for you. No fees besides normal hosting fees.

mom4lifecom: With our YouTube channel I have seen GREAT Google rankings from our videos within days of uploading them

creativethurs: New people find my work daily via @Etsy. It’s more than an online shop but a marketing opportunity as well

 

Expenses/fees to sell? When is it NOT worth it to pay fees to sell online?

mom4lifecom: If you are not able to measure results

ecoglominerals: When you are not making a nice profit or when gaining no sales/customers from specific channel

 

Any potential challenges for the consumer to purchase via your sales channel?

mom4lifecom: With my YouTube channel, customers need to be given a clear call to action 2 my website

ecoglominerals: Like all online sales, customer can’t see product in person so good photos are essential!

creativethurs: Not being able to see product in person b4 purchase. however once you build trust & relationship w/ customers = non-issue

PlumDistrict: One barrier is that we only offer our deals to registered users, although free, this can be an extra step for someone

 

What success stories have you experienced working with your sales channel?

creativethurs: I was able to make a full time living as an artist selling online

ecoglominerals: Being a work-at-home mom and working during naptimes and in the evenings when my hubby is home . Very convenient!

PlumDistrict: We have seen powerful relationships between the biz and their community evolve as a result of running a deal on our site

lepapierstudio: I was able to Quit my Day Job from selling online.

 

What recommendations do you have to get the most out of your experience selling online?

ecoglominerals: Advertise your business through social media.

mom4lifecom: Find other companies to cross promote with

PlumDistrict: Know what your objs are before you run a daily deal. If it is long term engagement, then this could be a great venue 4 your biz

startupprincess: I recommend impeccable branding, strong products & solid messaging for online sales

creativethurs: All the same advice for any business owner especially = be willing to be more transparent and be yourself

mom4lifecom: Use social media to connect w/ and get feedback from your customers

 

What secret to success is using a blog with your sales channel?

ecoglominerals: Keep it updated. It is a constant reminder that you are around and always improving your biz

creativethurs: Starting a blog was key in building my online business = a channel to share my art & let my customers get to know me

mom4lifecom: Having a blog has allowed me to put fresh content in front of our customers regularly while also helping google ranking

lepapierstudio: Having a blog allowed me to share my story and built a community. I would have never made it without it

 

Any other tips on How to ROCK Online Sales?

startupprincess: Be sure to offer a ‘freemium’ for people to sign up for newsletter

ecoglominerals: I am a big fan of social media. USE IT a lot. Do sales, giveaways (I do a lot!), have a newsletter, they all help!

creativethurs: Last but not least, try not to lose sight of why you created the product {you love} & started a business in the first place

 

You can see and hear more from @mom4lifecom and @sarahjanestudio at Touchpoint September 15-16! Join us! Use code ‘startupchat’ for $50 OFF

 

Meet Sarah Jane Wright, Founder and Owner of Sarah Jane Studios

The count down continues to this year’s 4th Annual Touchpoint Conference with only 14 days left! We are so excited for this years line up of talented and successful women who will be participating, one of which is Sarah Jane Wright who will be sharing tips on increasing online sales. If you haven’t purchased your ticket yet, you can still register here. We look forward to seeing you!

Hometown: North Potomac, Maryland

Current Residence: Provo, UT

Education: I have a BFA in Musical Theater.

Professional Background (brief, please): (THE VERY BRIEF VERSION:) I don’t really have one. (THE NOT SO BRIEF ONE)  I have been an artist all my life, and have been drawing and creating since I can remember. I studied art privately until I went to college where I chose to get a BFA in Musical Theater (another love of mine!) I graduated from college and actually started my private studio teaching voice lessons both at the university and in my own home studio where I started to get a feel for what it takes to start my own business. After the birth of my first child, and being pregnant with my second, I decided it was time to move back into my first love, illustration, and start my dream which was to illustration children’s books and create artwork for children.

What you wanted to be when you grew up: A children’s book illustrator and artist.

What you are: I am an artist and owner of Sarah Jane Studios: art and stationery for children

Brief Summary of your Start Up: I illustrate and sell vintage inspired original designs as giclee prints, stationery and paper goods both in my online shop and to retailers worldwide.

Company Website? www.sarahjanestudios.com

What inspired you? our family needed extra income, and I wanted to create art for children. I was inspired by other female artists who turned their art into companies, and thought “I could do that!”

How long have you been in business? 3 years

How did you fund it? I had very low start up costs which we paid for with our savings. Since then, we’ve boot strapped…investing more as we made more.

Do you have a Fairy Godmother (or Mentor)? Kelly King Anderson! Other ETSY artists and businesses as well as gracious people in the publishing and licensing industry who have shared their knowledge

Do you belong to any Business Organization or Networking Groups? Startup Princess!

Current Business Challenge? Balance. But who doesn’t have that challenge! For me, it’s challenging to know where to best put my creative energies: books, design, fabric as well as my managing energy into building the business. I don’t have much time, and I know that I can’t do it ALL, so I have trouble sometimes knowing where to best put my efforts that will support my business but still leave me time to be with my family.

What are you doing about it? I have learned that it’s ok to take time to see where things flow naturally. Trying to build too fast has it’s downfalls. I have learned that pushing too hard in a direction that doesn’t seem to “fit” is usuallly  a good sign to back off. Learning to build where doors fall open naturally, or where your drive and passion is strong enough push through is important. I’m learning to trust my instincts better.

Favorite motivational quote: “Nobody told me I couldn’t”  Sandra Boynton in response to being asked “What gave you the confidence to start your business when you didn’t even have a degree or any background?”

Family? I am the mother of 3 children ages 5, 4 and 1

If so, how do you balance family and business? In the beginning it was really hard…and I ended up doing family and business together all day. But after a few months, it was too draining and no body was happy. I have since confined myself to naptime and bedtime. Naptime went away for a good while, so most of my work is done at night…which means I’ve had to really simplify and cut back on all the extranius stuff that I could do for the business, and focus on the most imortant things.

Favorite book? I’ve had to cut back reading novels it seems…all my free time is spent doing productive things! But since my professions revolved heavily around children’s picture books, I’d have to choose: The Little House and Frog and Toad.

What do you do to relax? Hang out with my awesome husband, take hot baths, reading and looking at blogs/websites/magazines that inpsire me.

Thank you Sarah for the interview!

Meet Sarah Jane, Designer of Sarah Jane Studios

Sarah Jane is a wife, busy mother of 2 toddlers and an amazing illustrator capturing the attention Read more