I recently read an online discussion or should I say “debate” on whether or not offering a preferred customer program to your customers helps with repeat orders from them. What I saw was a lot of mixed reviews & statements regarding this…so I thought it would be a great topic to discuss here on my blog.

My thoughts are this:

If you are going to offer a preferred customer discount program of some sort to your customers, it should ONLY be offered to those customers who are already repeatedly buying from you. It should be offered as a REWARD for their frequest re-orders of doing business with you.

A preferred customer discount program should NOT be offered to all of your customers, especially if they have ONLY made one purchase from you. A program like that is meant to reward those who are frequently buying from you…not to those who contact you once, order and you never hear from them again.

Furthermore, You don’t want to go gung-ho with offering it to all customers because after all…if you are giving them all a discount well then…that is money coming out of your pocket since programs like this are at the consultant’s expense and not at the company’s expense.

The type of preferred customer programs I like are the ones that are punch cards and after the customer has made a certain amount of purchases with you…then you reward them with a discount off (let’s say their 10th purchase) or you offer them a free little gift. I don’t like the ones where you give the customer a discount on each & every order to reward their loyalty as that is money out of your pocket.

What are your thoughts?

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