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.

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