This particular plan works best in a retail environment. Some service oriented businesses may also benefit.
Referrals, as I have mentioned on numerous occasions, is the number one way to get new quality business. But that is not all.
Let’s assume that you have a decent customer base and they are loyal to you. Do you go out of your way to let them know that they are special? Do you reward them?
One of the reports I was reading said that “…it can cost five times more to acquire a new customer than keep a current one….”
With that in mind and that a small percent increase in customer retention can increase your company’s bottom line in double digits or more.
So, let’s take a case where you opted to send all of your existing customers a two fer offer on any product in your store. This would be equal to a 50% discount on everything.
And it was only good for an extremely short window.
Then a couple of weeks later, you make another offer of say 50% off any single purchase with the introduction of a new customer AND that customer would also get 50% off any single item purchase.
Then, about a month later, you come up with another customer only offer and again tie it to a new customer.
As you might be able to see, this could be a whole lot cheaper than trying to get new customers through traditional advertising.
