How to Use Promotional Products to Improve Customer Retention

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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.

Add Proven ZIP To Your Direct Mail

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add zip to direct mail

 Gary Vaynerchuk said “Marketers ruin everything!”  Keep in mind that Vaynerchuk is a marketing guy.  But he points out that as soon as marketers find something that works, they (we) tend to use it to death until it becomes a nuisance.

Consider email.  We used to get excited each and every time we got an email.  We read every single one!  Now we can’t wait to hit the “delete” button so we can get rid of the nuisances.

The same can be true for many forms of Direct Mail.  Direct mail is historically a great marketing tool for small businesses.  It still can be.  The problem is, this is a case where some marketers have ruined it for the rest of us.  We know this as consumers.  Where do you open your mail?  Many of us answer that question, “Over the trash can.”  We are standing there (mentally) hitting the delete button on marketers.  Tell the truth, you are probably almost stunned these days when you get a real, sincere piece of mail!

So what can you and your company do?  You can stand out…that’s what.

One way you can stand out is to get noticed before you hit the “circular file.”  To do this, some marketers will create direct mail that looks like a real card.  Some will even go to the lengths of having someone hand write out the envelope.  This is a good news/bad news proposition.  The good news is, handwritten envelopes DO tend to get opened.  And if you have a small group you need to send a message to, this is a great way to make sure they see it.  The bad news with this tactic is if your customer opens mail thinking they are getting a personal piece of mail, and it’s just an ad, it can backfire.  You seem disingenuous, and the customer will likely (sometimes subconsciously) resent you and your company for it.

Another obvious way to get your message seen before it hits the trash pile is to scrap the envelope.  You can send a colorful postcard or a flyer without putting it in an envelope.  I actually like this tactic for some campaigns.  But this idea too, has shortcomings.  First, you are usually limited to what you can include on the space you have to imprint (especially with a postcard) AND you are never quite sure what condition your marketing pieces is going to arrive in!  Again, sometimes this is fine.  But sometimes these limitations are just too annoying.

One of the best ways to ensure a successful direct mail campaign is to incorporate promotional products WITH your direct mail.   The results of this math equation should really get your attention. Direct Mail + Promo = Marketing Gold! But why does this combination work so well?  Let’s get to it.

Getting It Open

First and foremost, using a promotional product can help you create what I call “bumpy mail!”  Bumpy mail (or dimensional mailers) are packages that are odd shaped or bumpy.  This unique shape calls to the customer or prospect “open me!”  Curiosity will help you “kill the cat” because your potential client will want to know what is in the package.

But don’t just take my word for it!  Let’s take a look at a study done in 1993.  This study, done by Baylor University, sent packages to 3000 school administrators.    They were divided into three groups.  The first group received an envelope with a sales letter, sales collateral and postage-paid business reply card   The second group received an envelope with similar contents plus a promotional product.  The third group received all of the contents listed above, delivered in a box with a die cut slot, instead of an envelope. The results (as you might expect) were impressive.

Those who received a promotional product in a dimensional package responded at a rate that was 57% higher than those who received the same promotional product in an envelope!• Response rates for the dimensional package recipients were 75% higher than for the group who received only a sales letter! In case you were skimming, you might want to read that last line again.  Response rates for the dimensional package recipients were 75% higher!  Wow!

Now I can hear those “Yeah-But” folks now.  “Yeah but the cost of shipping is going to be higher for that piece.”  Of course it will be!  But how much is a 75% increase in response rates worth to you?  Remember a key word here.  This is not a 75% increase in OPEN rates.  This is RESPONSE rates!  If you can’t increase your sales (and overcome in the increase in shipping) with that kind of response rate, you need to seriously reconsider your sales offer!

The Lasting Impact

Here’s the thing…if I ended the post with the above information it would be enough.  But the best part about adding a promotional product to your direct mail is I get to say “But that’s not all folks!” I have always wanted to say that! The fact is, when you add Promo to your Direct Mail, you get all of the other benefits of promotional products AFTER your customer opens the offer!

  1. Remember the Rule of Reciprocity: Customers feel good about you and your company when they receive something from you.  By adding something of value to the direct mail offer, you create a sense of value.  This creates a better opportunity to sell to this client long term.
  2. Totally Targeted: This promotional piece is still super targeted. You have reached directly into this prospects home or office…and are communicating to them there.
  3. Lasting Impression: You have now created a long term advertising message (if you chose the product correctly) long after the postcard, letter or flyer has been thrown away.

Find Your Watermelon

Years ago I was in a sales training seminar with a Promotional Products Industry expert, Cliff Quicksell Jr.  He told a story about a young industry professional that needed to get a message to only 6 people.  She needed to get it to them…and she needed to make sure they did NOT throw the letter away by mistake.  This young pro, as Cliff tells it, took a Sharpie and wrote the message on six watermelons…and sent them! “She had a tough time with the post office,” Cliff said.  “But she finally got them to take them. So I ask you.  You come in Monday morning and there is a watermelon on your desk.  Do you read it?”

I love that story!  The message is clear.  Find your watermelon! While you may not have to send giant fruit (though that would be awesome), you better stand out.  Promotional products can help you do that in a cost effective, results-based way!

This post is an excerpt from the book Delivering Marketing Joy. You can purchase that here on Amazon.