Rewarding Customer Loyalty
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Loyalty is the most important quality in a client. So why does it seem to be the most underappreciated quality? Case in point, I saw a commercial for a new H.D. DVR system for the satellite company that I use. It was free, which made it even better. I was moving, so I knew they would also install it for free. I called up the satellite tv company (who will remain nameless). They told me it would be more than $450. I asked “Why?”. The lady on the phone said that it was for new customers only. I had been a customer for years, so I didn’t qualify. Also the installation won’t be free because that only applies to my old equipment being transferred, not the upgraded equipment.
I was shocked. I was actually being punished for being a loyal customer. Meanwhile, someone on the other end was being rewarded for being new. Now I understand the dynamics of enticing new clients to come your way. But there should be rewards for loyalty as well. If not for the moral argument, than at least for the purpose of building customer loyalty.
That experience is why I came up with the referral/rebate coupon at the Commercial Steam Team. Returning clients also receive 10% off automatically to reward their loyalty. To further reward them a step above they receive coupons to extend their loyalty discount to anyone they refer. On top of that they receive a $10 rebate as a thank you for referring the new client. This way the new customers are enticed, but the loyal customers are rewarded even a little more. Seems like a no brainer to me. Take care of what you got first, then worry about bringing in new clients.