Method 1: Offer a Discount
The next time you offer fridge magnets to your customers, include a ten digit "customer number" after your phone and fax numbers. Tell the customer that this number entitles them to a discount on their next purchase, and remind them to keep the magnet handy.
Naturally all of your magnets will carry the same number. Its simply a device to identify people who are calling as a result of your magnet promotion, and it will give you an easy way to gauge its effectiveness.
Method 2: Lucky Draw
Incorporating the same special number idea, offer to put the customers name in a lucky draw the next time they order and quote the number. For this to work, you must have a prize that is perceived to be of value to your customer. It might be an item from your stock or a free consultation related to your products or services. The important thing about requiring a special number to be quoted is the response it requires of your customer. It will encourage them to
1. Keep the magnet
2. Call your business ahead of your competitors because of the incentive
3. Do repeat business with you because the rewards are ongoing as long as they have the magnet
The Rewards Coupon
(While this doesnt involve the use of magnets, weve included it because it exemplifies the same principles.)
One of the most effective incentive programs weve seen recently is one employed by our local coffee shop. Customers are given a card with a series of small numbered squares along the border. Each time the customer buys a hot drink, the shop assistant stamps one of the squares. Every sixth drink is free.
The free drink costs the café a couple of cents in coffee or tea, but brings in $15.00 worth of purchases (5 hot drinks at $3.00 each), plus any additional income derived from the purchase of snacks to accompany the hot drinks. The snacks range from $4.00-7.00 each so any snack purchase increases the profits considerably.
The card has 24 squares in total and has an expiry date. If a customer used the entire card, the breakdown would be as follows:
1. Cost of promotion: 80 cents (4 hot drinks at 20 cents each)
2. Income from drinks: $60.00 (20 drinks at $3.00 each)
3. Income from snacks (maximum): $80.00-140.00 (20 snacks at $4.00-7.00 each)
Not a bad return on investment. And thats not taking into account the benefits of the goodwill engendered in the customer who feels she is being rewarded for her patronage.
These three promotional ideas wont necessarily apply to your business, but the concept of rewarding customer loyalty is certainly adaptable.
So how can you set up a rewards system in your business?
