If you want to keep customers happy, you need to find ways to give back to these customers. Customers keep your business profitable, and it’s always cheaper to keep a current customer than it is to attract a new customer.
Consumer acquisition is the focus of 44% of companies, and around 18% of companies focus on retaining customers.
Giving back to current customers is ideal because 60% - 70% of customers will purchase a new product from you, while 5% to 20% of new customers will make the same purchase. Considering customer acquisition costs, it only makes sense to give back to the customers that are willing to purchase new products at a much lower cost of acquisition.
Giving back to customers can be done in a few ways:
1. Exclusive Discounts and Promotions
Papa Johns is one of the best in the business when it comes to discounts and promotions. While the pizza they make may be subpar compared to a small pizzeria, the chain offers deals that are often too good to ignore.
You'll find that the company tries to give back to their customers with:
- Point systems to earn money back on items
- Free items
- Discounts when sports teams score, win or reach certain milestones
Just the other day, the Papa John’s app notified me of a “special discount.” Sure, I have to give the company my business, but Papa Johns is willing to give me discounts for ordering from the company.
2. Offer Scholarships to Customers
Sometimes, giving back to customers means giving back to the community. There are a lot of ways to do this from paying for the dues of local sports teams or sponsoring events. Another great way to give back is through scholarships.
All this takes is an argumentative essay, a few days of reading through essays and dispersing the money to a lucky winner.
A lot of great companies offer scholarships, including:
- Dunkin’ Donuts
- Burger King
This is just a very short list of the companies that are giving back with scholarships.
3. Support Local Businesses
There's a good chance that some of your customers are actually business owners. These owners are going to need all of the support that they can get. And it’s very important that your business attempt to support these local entities.
My local Ingles, which is a massive supermarket chain, makes it well-known that they purchase local produce.
It's a great way to give back to customers and support the community. You can be sure that the farmers, their friends and family members purchase food from Ingles because of this approach.
Consistently giving back to the people that matter the most – your customers – will keep the doors open and the lights on. You have a lot of potential to give back, and this may be something as simple as offering free shipping to a loyal customer.
You can also choose to give away an item to a random customer or offer special discounts only to repeat customers.
Over time, you’ll build brand loyalty where customers will continue to frequent your business because they appreciate all of the giving back that you do.
About Al Davidson
Al Davidson founded Strategic Sales & Marketing, Inc. (SSM), where he helps deliver B2B lead generation services and appointment setting solutions for clients around the world. Under Al’s direction SSM has designed and implemented new business development plans for thousands of B2B companies which generated over 7 million new sales leads and millions of dollars to his clients.