Incentives to Drive Business

Last week, I touched on the importance of providing throughout all areas of your business. I also talked about the costs associated with obtaining new customers versus retaining existing customers. And since conventional business wisdom tells us that it costs 10 times as much to obtain new customers than it does to hang on to our old ones, our challenge is:

How do we keep our current customers?

There are lots of pieces that go into your customer service puzzle, but how about a list of some tangible things you can do (today, if you want) to satisify your current customers and let them know, "Hey, we appreciate you and thanks for your business."

1. Coupons: Lose the "for new customers only" tagline on the bottom of your coupons for a change. Reward current customers with coupons just for them.

2. Reward Cards: If you are a restaurant, sell product or even offer repeat services such as oil changes or haircuts, think about creating "frequent customer cards" where after a certain amount of purchases one is free or offered at a substantial discount.

3. Comment Boxes: Ask for feedback (and provide timely answers). Customers want to be heard. Set up a "comments" box near the front of your store or set up a form on your website. Don't forget to let those who comment know you hear what they are saying. You don't always have to do what they ask, but do let them know you appreciate the time they took to let you in on their thoughts.

4. Sneak Peeks and Exclusive Content: If you are more of a service-based industry or have a hard time coming up with "sale" items, offer exclusive information to loyal customers. Utilize your Facebook page to distribute content customers are asking about. Have a log-in area on your website where frequent customers can sign-in to access "member only" information.

5. Customer Appreciation Events: Maybe you are a business that requires a membership. If so, offer "member only" events or extra hours where members can come utilize your services before the general public. If you do not have a membership base, plan quarterly customer appreciation days with free food, giveaways, prizes and drinks. It's a way to say thank you to your community of customers and demonstrate new products or services you might have (and who doesn't like free stuff?)

6. Contests: Maybe you're launching a new product or maybe you'd like to create an e-newsletter. Host a contest where customers can contribute ideas for names. Or, maybe you want to collect food for the local food shelf. Solicit customers to bring in donations and give a reward to the customer who contributes the most.

7. Learn Names: I don't know about you, but I feel pretty special when I walk into a store, a gym, a bank, etc. and the person greeting me does so with my name. When you start learning your customers names and getting to know more about their family or interests, they see you as more than just a place that offers a service they need. They'll enjoy coming back and not just consider you an "errand" on their list.

8. Freebies: Just because. No strings attached. Rent a popcorn machine, stash a cooler of cold beverages by your front counter, comp a lunch for a customer that eats at your place every day. Small gestures like that are appreciated.

9. Referral Rewards: For those who focus on business to business, referral rewards are just one way to say thank you to current clients or customers. Offer a commission or percentage from a new business contract referred by another organization or business. Likewise, give other businesses a deal if you've been using their services (and vice versa) for quite some time. Collaborations can go a long way in the way of customer service.

10. Time: Don't we all wish we could add a few more hours into our day? Give your customers the gift of time by listening to them when they are with you. Whether you run a retail store, a service center, or are a doctor/lawyer/dentist, make each customer feel like he/she is the only one you are focused on at the moment. Ignore the phones and answer their questions.

So there you go. 10 ideas you can work on today to drive business with a focus on current customers. Feel free to share other ideas that have worked for you!

Melissa is principal at Allée, a strategic communications firm in Albertville. Reach her via email or on Twitter. Patch readers are also encouraged to join her at the B4 Small Business Planning Workshop in Albertville on August 9.