Method 1: Offer a Discount
The next time you offer a promotional product to your customers, include a 4-10 digit number on the product. Tell your customer that this number entitles them to a discount on their next purchase, and remind them to keep the product handy so they can quote the number when ordering. Naturally all of your products will carry the same number. It’s simply a device to identify people who are calling as a result of your 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 customer’s name in a lucky draw the next time they order and quote the number. For this to work, you must have a prize that's 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
- Keep your promotional product handy
- Call your business ahead of your competitors because of
the incentive
- Do repeat business with you because the rewards are
ongoing as long as they keep the promotional product
The Rewards Coupon
(While this doesn't involve the use of promotional products, we've included it because it exemplifies the same principles.)
One of the most effective incentive programs we’ve 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 that’s 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 won't 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?
...more business promotion articles
