Content Update with Hasseman Marketing
The Three R's of Business
Repeat Customers Referrals
The gift needs to be nice enough to get your customer to act. Make the first purchase minimum enough that the proceeds from that sale will cover the cost of the item.That way you might break even on this transaction, but now you have a customer for life! Make it feel somehow “exclusive.”Maybe you only send it out in groups to your top 20% of clients.They are the most likely to give you the best referrals anyway!
How to Use Promotional Products to Improve Customer Retention
Let’s start with a statistic. It will really make you think.
Studies show that 69% of customers who leave you (as a customer, donor, supporter, etc.) do so because of “perceived indifference.” They will leave you because they simply don’t think you care.
Seriously, think about that. Nearly 7 out of 10 lost customers come down to the fact that you didn’t show them that you gave a crap about them.
Customer Loyalty—The Stakes are High, But It’s in Your Control
This statistic both frightens and excites me.
On one hand, it means that my customers could leave me because I have just been careless and lazy. It means that if I am not careful, my competitors could swoop in and take my revenue…just by caring more! Am I doing enough to show my customers, regularly, that I sincerely appreciate their business? Are you? The question itself seems scary.
And yet, on the other hand, it is an entirely fixable (and improvable) situation. If I am not doing enough to show them, I can fix it! It is totally within my power to do so. That’s a good thing. I don’t have to wait for some cosmic shift in the economy, or some other outside force to change. This is something I can fix all by myself. I just need to care more, and then follow through with actions to demonstrate that I care.
Create Systems to Improve Customer Loyalty
On the third hand (is that even possible?) I see this statistic about perceived indifference as an opportunity. It means that most businesses—and likely my competitors—are NOT caring enough about their current customers. That means I (and now you) can create systems that allow you to gain market share…through caring! How cool is that?
So how do we do it?
Let’s talk about two very concrete ways to ensure your customers always know you appreciate them.
Two Strategies for Customer Retention
Start a Habit of Sending Thank You Cards
It’s funny. Sometimes the things that make a big difference in your customer’s eyes are the simplest.
- Send your customers a card on their birthday.
- Send them thank you cards for their business.
- Send them a holiday card.
- Send them a Thanksgiving card.
Most people open their mail standing over the trash can because all we get are bills and junk mail. A heartfelt thank you card really stands out.
The reason most people don’t send out cards regularly is they lack a system.
Let’s face it; most of us have good intentions. But those intentions go out the window when we can’t find the right kind of card, or we can’t find a stamp, or we don’t have the person’s address.
We need to schedule a specific time each day (or week) that we send out cards. One of my favorite practices is to try to create a reason to send out at least one thank you card each day. Sometimes I send a card to thank a customer for a purchase they made. Sometimes I send one to someone who helped me. It’s a fantastic practice.
Two things will happen. First, your customers will NEVER think you don’t appreciate them. And second, you will have a better attitude about life. If you spend every day trying to find something to be thankful for—guess what—you will become more grateful. That’s not a bad side benefit for doing something to help you increase your business! Now let’s talk about how to create customer retention with promotional products.
Send Quarterly “Thank You” Gifts to your Best Customers
If you are like most businesses, 20% of your customers or clients produce 80% of your sales. It’s not a universal rule, but it is surprising how often it is true.
So those 20% are the clients you REALLY want to show that you care. So, in addition to sending them a birthday card, a Thanksgiving card, and thank you cards, you want to reach out with something extra special at least once a quarter.
Start by establishing a budget.
How much are you willing to spend over the course of a year in order to say “thank you” to these top clients? Remember, these clients are your bread and butter. This is probably not the time to go cheap. How much you can afford to spend retaining your best clients will be different for every business, but, in my experience, you don’t have to break the bank.
Figured out how much you’re able to spend per year, per top client? Now, just for argument’s sake, let’s assume this number is $100 per year. That is, you’ve determined that it’s worth it to your business to spend $100 over the course of a year to say thank you to these top clients. Divide your number by 4. This means you have $25 per quarter to create some sort of gift to give to these clients.
This is more than just a nice gesture. This promotional gift shows your appreciation for them, and it also showcases your logo, reminding them each and every time they use the gift that you are a great company to work with! The trick is to tailor the gifts to your audience.
Start a quarterly thank-you gift program and you’re now “touching” these clients 4 more times a year with a tangible, useful piece of appreciation.
A Plan for Thanking Your Best Customers with Awesome Promotional Products
How does this work? Let’s give you an example. Let’s say you are an insurance agent who has a wide variety of customers. You have business professionals, farmers, families and more.
This diverse group of customers gives you an idea of things you do and don’t want to give. So, your quarterly gifts might look like this:
Quarter 1: Roadside Safety Flashlight. This makes sense because you are not only promoting your brand, but you are showing you care about your client on the road.
Quarter 2: High-End Travel Mug and Cooler Bag. This is a cool combo because your clients might be thinking of vacations or road trips for the warmer months. Great way to remind them that you are with them through the miles and smiles!
Quarter 3: BBQ Set. At this point they will be in barbecue season with tailgating just around the corner.
Quarter 4: Executive Calendar and Tumbler. These two gifts are sure to stand out in the office and the home.
Obviously, these are just a few ideas to get you thinking. There are thousands and thousands of options. But these are some cool things that transcend generations and gender.
Streamlining the Process of Ordering Promotional Products
Also, here’s a quick tip to make this easier for you.
Call your promotional products consultant (that’s us!) and tell them your plans. We’ll help you find the perfect products that fit your budget and will be genuinely appreciated by each of your top customers. To make it even easier, consider ordering all four quarterly products at once. Have them shipped to you about a month before you need them, which allows you to spread out the cost over the year.
Pre-ordering for the whole year, “poof!” creates a reminder system for you, so you remember it’s time to say “thanks” again to your best clients. When the boxes arrive it’s time to start!
There are lots of ways to thank your clients, to kick the problem of perceived indifference to the curb, and to spread marketing joy all year round.
Get creative too and have some fun thanking your customers. You will be glad you did!
This post is an adapted excerpt from my book, Delivering Marketing Joy.
You can find all of the content we create on our blog page here. If you want to create a marketing campaign that truly hits the TARGET, check out our FREE TARGET Marketing Playbook here.
Last Week at Hasseman Marketing
Grow Your Fundraising Efforts Through Promo
There is a large group of people hovering anxiously around a painted line in the road. There is an electric energy in the air as they look at their watches. Some of the participants are stretching and kicking their legs in order to get ready. There is a shout from the front of the group, “Runners! On your mark! Get Set!” Then a shot rings out and the group of runners dash away in a group of controlled chaos away from the start line.
There are fast runners, slow runners, walkers, and weekend warriors. All of them have come to challenge themselves at this latest 5k. And all of them will be raising money for a cause. There are thousands of ways that organizations raise money to increase funds and awareness. Local 5K races are popping up everywhere. Why? Mainly because they are (relatively) easy to plan and there is potential for funds for the organization. (It doesn’t hurt that the organization can promote healthy living AND increase awareness as well!). And there is one thing that all of these 5K’s have in common.
It’s all about the SWAG!
Usually, it’s the race t-shirt that runners covet. But it could be the race bag, race medal, or all of the above! Runners want to challenge themselves to see how fast they can run. And they want to do it in a group for socialization and recognition. But don’t kid yourself. They want the race shirt. The lesson here is that (when done right) promotional products can have a BIG impact on your organization’s next fundraiser. The concepts on how promotional products can affect a fundraiser are similar to how they can affect behavior for a business. But just to get your creative juices flowing, let’s discuss a few here.
Increasing Donations
One way I have seen non-profits successfully use promotional gifts to help in fundraisers is to incentivize higher giving. The organization will create “gift levels” that inspire donors to give a little bit more to get the nicer gift. Obviously, if you are going to employ this tactic, you need to have promotional incentives that move the meter! The key is to focus on things that have really high perceived value, without breaking the bank! But you can see this technique successfully used by everyone from Big Brothers/Big Sisters at Bowl For Kid’s Sake to your Public Radio and TV.
When creating a program like this, value is very important, but so is exclusivity. If you can create a promotional gift that is a “one of a kind” then you have a great chance at really affecting behavior! If you want donors to really step up their donation, then you better step up your game. Think outside of the box here! What about a custom “lettermen’s jacket” that is done in the organizational colors? What about a custom guitar? Think of an “award” type promo that can be considered a collectors gift, but can also promote your organization for years to come.
The lesson is, if you want a big result then make sure you are thinking big with your items!
Increasing Participants
At the end of the day, you want as many people involved with your fundraiser as possible. One of the best ways to increase your membership is to offer an incentive to “sign up.” As an example, my team and I are helped a local mud run to increase racers and ultimately, increase donations to our local park. The race itself has been going on for years and was well-respected for the course and the obstacles. Now we just need to increase the number of racers! So the first thing we did was to improve the quality of the race day t-shirt. Many 5K races (and other local races) default to a basic cotton t-shirt for their race day giveaway. And for certain races, that is fine. The problem is, most serious runners don’t wear a basic cotton t-shirt when they are running. They want a nicer “performance” t-shirt. So by improving the basic t-shirt element, you not only increase the likelihood they will wear the shirt later (and promote your event) but the shirt also becomes a reason to do your race, rather than another.
As a runner, I know this is a part of the discussion when choosing a race. The other thing we wanted to do was incentivize early sign-up. Having racers signed up earlier has several advantages. You can better plan for everything from water stations to parking to even that t-shirt order. In addition, you get money in earlier to fund your promotional efforts. So one year we gave away a basic drawstring backpack for the first 250 racers that signed up. That quickly increased early sign-ups and helped us promote the event overall!
Promotion of the Cause
Of course, the long-term effect of these promotions is you also get to promote your organization or cause! At the end of the day, the reason you are raising money in the first place is so you can make an impact! By promoting your organization (long term) you not only increase your reach, but you also make fundraising in the future easier and easier. Why? Because donors are more likely to give if they know and understand the mission and impact of your organization.
So whether you are planning a local 5k to raise $1000 or a huge capital campaign with the intent of raising $1 million, make sure you consider the impact of including promotional gifts in the mix.
If you want to create the perfect race, sign up below here our free guide for planning your next 5k.
