“NEW CUSTOMERS ONLY” and Customer Rejection
Don’t you just hate that…when you see a deal or offer and in the fine print it says…New Customers Only. Price discrimination is a known promotional tactic…just think about senior citizens discounts. Consumers are cool with that–Senior Citizens have earned it. But to reject a frequent customer is just bad business.
Whatever happened to the idea of…”it’s easier to keep a customer that gain a new one.”
Think this scenario through….When a current customer tries to redeem your new customer only deal and the merchant denies them, what kind of lasting impression does that leave your current customer? The customer that has been paying you all this time. The one that helps pay the bills month after month and you just denied them.
This new customer that gets this killer deal…what if they are just a one time customer? What if they take your deal and run? But that loyal customer who you have just offended now may decide to leave. You have actually planted a seed of doubt about your relationship. Just for the potenial of that short-term gain of a new customer that may or may not work out.
I get it. The value of new customer over the lifetime justifies your deal–but only over the lifetime of the customer. It’s ironic isn’t it? Your attractive offer that your loyal customer just tried to redeem may very well be the reason he/she goes to your competitor and that lifetime customer calculation is null and void.
What’s the solution?
3 things you can do to reward and inspire loyalty:
- If a loyal customer wants to redeem the deal, go ahead and let them. Don’t plant any doubt. Think of it as a thank your gift.
- Create a loyalty program. Every time you come in get 10% off one product or your total order. Or the come in 8 times and your order is on the house. Give people a reason to come in beyond that first-time offer.
- Thank your loyal customers. You would be surprised what a simple thank you will do. You can send a thank you card with a great coupon, or send a free product…or just the card will do. It’s the little things that get noticed these days.
Customers can easily come and go, but the companies that create these relationships make it difficult for people to switch. So stop just offering the great deals for new customers and consider offering more great deals for repeat customers – that is really how you will stay in business and ultimately grow.