According to Pareto’s Law, 80% of your income will be generated by 20% of your customers.
These high value customers should be treated well so they continue to purchase from you and act as business promoters. One of the best ways to do this is to offer your best customers special deals.
Learn more about how you can use special offers to your best clients to retain them for longer and generate additional income.
What Are The Benefits of Positive Client Discrimination?
Many brands consider special offers only for new customers as a way of attracting them to the business. This can be very effective, though sometimes it only encourages a one-off purchase.
Offering special deals for your best clients can be a good way of increasing the revenue you generate from them. It creates solidity in the business-customer relationship and means they are more likely to return to your business when they need to buy another product in the future.
This can drastically reduce the costs to secure the same level of revenue as marketing to current customers is cheaper than finding new customers.
In addition, those who are your best clients are likely to be talking about their experiences to their peers. This word of mouth marketing allows you to reach more of your target market and generate new customers, at zero cost.
What Kind Of Offers Can You Give Your Best Clients?
There are many different styles of positive client discrimination. One of the simplest offers is a discount they can use next time they make a purchase. Many lifestyle businesses like fashion houses do this. Normally the offer contains a minimum order amount in the terms and conditions.
Another offer which can be made is giving away a free product with the next purchase. Many businesses offer a free product when a certain amount has been spent or when a high profit item has been purchased. Sometimes the offer product has been branded as a way to serve as a reminder of the business.
These offers are typical in the marketplace. However, there are other ways you can reward your best customers. For instance, attempt to align your business with strategic partners.
Insurance brokers are very adept at doing this. Compare the Market offer buyers of insurance a free soft toy as a reward for buying insurance through their system. With every purchase of insurance or switch of energy supplier the business rewards customers with another soft toy. This has been running for several years and has proven very effective at achieving returning customers.
Other businesses have offered discounted event tickets or vouchers which can be claimed when a purchase is made with a strategic partner.
How Do You Determine Who Your Best Customers Are?
For this system to work you need to be able to identify your best customers. One of the best methods for identification would be to calculate the average spend over a customer’s lifetime; the Lifetime Customer Value.
You could also use the average spend on a single transaction. However, this is not the best statistics to use. A customer might go into your shop and spend significantly above your average spend but will never return. Another customer might spend far below your average transaction in several transactions and therefore over their lifetime spend significantly more.
You’ll want to know the distribution of these statistics so you can determine who is in the top 10-20% of your customers.
Once you have identified those figures you can see who lies within the top bracket and therefore who your best customers are.
Another option you have is to see is who interacts with your brand the most online. If you have an active social media account and you realise a select few customers are constantly pushing your brand and giving it more exposure these become some of your best customers. They may not spend enough directly but they may direct other purchasers to your brand.
How Do You Provide The Offer To Your Best Customers?
Once identified, you can distribute your special offers to your customers. There are many options available; each one has different requirements for information you have collected about your customers. Here are those options:
- Social Media – Social media is one of the easiest and quickest methods you can use to distribute codes or links to a webpage providing details of the offer. Social media is a really good method because it can create further exposure when your customer shares your message. This can attract more of your target audience to use your business or to increase their spending.
- Email – Email is one of the most common ways special offers are distributed. It is simple to do when a new email list is created that targets your best customers. This is also a secure method if you are using special codes to enter at checkouts. However, it can also be ineffective if the email goes to their spam folder or it arrives in an out of date account.
- By Post – Writing a letter to your customers is a more expensive way of providing special offers. However, using techniques such as lumpy mail you can increase the uptake of your special offers.
- In Person – This is one of the hardest ways of delivering special offers to your best clients. Unless you are very familiar with your customers and interact with them frequently you will find this method almost impossible.
Whichever method you use to inform your customers, remember to tell them exactly why they are receiving the offer. This will increase the word-of-mouth marketing expanding your business’ reach.
Offering a single deal which is only applicable to your business’ best customers is a good way for increasing retention and revenue. Discover who your best customers are and reward them. They will then spread word of your generosity and bring in new customers for your brand.
- Calculate your average lifetime customer value.
- Determine a point at which a customer becomes one of your top.
- Figure out what offers you can afford to give the customers.
- Distribute the special offer to your best customers.