Did you know it costs businesses a lot more to acquire a new customer than it does to sell to an existing one? Not only that, but existing customers spend on average 76% more than new customers. So customer loyalty really pays off, and customer loyalty programs pay for themselves. In this Simply Print Blog, we look at the benefits of rewarding your loyal clients, and which reward programs are best for your business.
Everyone is doing it.

Let’s face it. Everywhere you go, there’s a reward program on offer. It started becoming popular with Flybuys, but now everyone seems to be jumping on the bandwagon. And why wouldn’t they? Rewarding your loyal clients has proven to be one of the best ways to encourage customers to spend more. A rewarded customer is also more likely to talk about your business to other people. It’s like saying “I value your business, so here’s a gift as a thank you”. It could be a free meal after buying four, or it could be a discount off a purchase by earning points. Whatever you offer, the general idea is the return to your business is far more than the cost of the reward itself.

Why reward your clients?

Why would you voluntarily give up some of your hard earned profit? Why do supermarkets offer points which accumulate in the hope that one day we’ll receive something back? They do it because it shows they care for their customers, and people love the thought of being appreciated. They understand that giving away some profit to keep existing customers is much cheaper than the cost of finding new ones. And reward programs are a great way to get new clients too.

Can a reward program fail?

Absolutely. The key to a good reward program is to not make it too easy, but on the other hand, it can’t be impossible for clients to receive their reward. Many years ago, we printed a batch of reward cards for a hairdresser which offered a free haircut after six. The card had an expiry date of 12 months. This was a pretty good deal, because it was achievable from the customer’s point of view, and also kept them loyal. At the next print run, we were instructed to increase the haircuts required to 12, and change the reward to “receive the 13th haircut at half price”. Of course we did what she asked, but I knew it was a mistake. At the next print run, she reverted back to the old way, because no one was taking up the offer, and she even lost some customers. She said when she asked them for their reward card for stamping, most would say they forgot it. I asked her why she decided to change the reward program. Her answer surprised me. She said it was because too many people were getting free haircuts. This is commonly known as looking at the doughnut and seeing the hole. She’d failed to see that she probably didn’t give any free haircuts away, because most people would buy an extra haircut to get to the free one anyway. Instead, she was guilty of creating a mountain that was too high to climb, and a reward that wasn’t worth the effort. Even worse, she was giving the new reward card to customers who had used the old one. Not a good message of client appreciation

The Simply Print reward card.

Yes, we jumped on the reward card bandwagon years ago and it works very well for us. Ours is pretty simple. For every $100 you spend, you receive one stamp. When you have ten stamps before the 12 month expiry date, you get up to $100 off your next order. It’s very important that you have conditions, or else people will try and abuse it. We have a few conditions, but the most important one is the card will only be stamped when we receive payment, and customers with outstanding invoices are removed from the program. We don’t mind giving out $100 credits, but only to prompt payers.

We also give out referral vouchers. This one’s pretty simple too.
Clients receive a thank you letter with a 10% voucher attached. The client gives this voucher to a friend, and when they become a Simply Print client, we send a 20% voucher to the client who referred them. The 10% voucher for the friend has an expiry date, but the 20% voucher doesn’t, so they can redeem it at any time on their next order. It’s our way of rewarding our clients for spreading the word.

Best reward programs.

On a personal note, our family loves using reward programs. My wife Carey has a special purse full of them. Everything from kebabs to clothes to paint earns us points and rewards. Our favourite is Flybuys, but it may surprise you to know that we’ve never used it for a flight. We just get $10 off our weekly shop occasionally. The points really stack up fast when you take advantage of triple points vouchers at the bottom of the docket. We figure that if we choose, we can use that money we save to buy flights one day using any airline.

New specials.

As usual, we have some new specials to celebrate the arrival of May. If you follow us on Facebook  or Instagram, you’ll also get a reminder each month. We also have a countdown timer special on our website home page. Check back regularly so you don’t miss a bargain.

Until next month, if we can help with anything don’t hesitate to contact us.

Brett and Brad.