It drives me a little crazy when I receive an advertisement in the mail from my cable TV or phone company offering me an incentive to sign up with them. First, I’m already a customer and can’t understand why they can’t figure that out. Second, why is the price they are offering a new customer lower than what I’m currently paying?
This concept, offering a new customer a better deal than an existing customer, is nothing new. (I’ve even written about this before.) And it’s not just cable companies that do this. The strategy is simple. A company wants to acquire new customers and is willing to cut its rates to do so. But, how do you think a customer, such as myself, feels when we see the deal, then calls the company to ask for the same deal, and is told that it’s just for new customers? Isn’t my loyalty worth something? I would think my loyalty would be an incentive to give me a better deal, versus giving a better deal to a customer they have never done business with before. But, apparently, that’s not the case with some of these companies.
Then, there are companies that take the opposite approach. One of those companies is Naya Traveler. They are a boutique tour operator, specializing in high-end, immersive trips to culturally rich destinations, and they offer a $500 discount to any new customer that signs up for a tour. But, if you’re an existing customer, the discount is $1,000. That’s twice the discount for a new customer. It’s obvious that Naya Traveler values their existing customers.
So, maybe you want to offer new customers an incentive to do business with you. And, maybe it’s an incentive in the form of a discount – something that existing customers don’t receive. I understand the strategy, but that doesn’t mean you can’t do something else for your existing customers. A cable company may offer a lower rate to new customers for the first year. That same company can offer their existing customers a bonus, perhaps a free month of cable or a free upgrade to a premium channel. This is just something that shows “a little love” to their existing customers.
So, when advertising and promoting to new customers, consider the message you are sending to existing customers. All customers should be treated equally as far as customer service is concerned. All should be made to feel special. But, when it comes to the deal, you might consider treating your existing customers, the ones that have shown you their loyalty, a little better.
The Market Isn’t Likely To Run Out Of Runway Anytime Soon
Cracking The Kindness Code: The Quest To Define Self-Compassion
How to Build Best-in-Class Websites with an Editorial Ethos
5 Non-Obvious Ways to Improve Your Sales
Know the Facts Before Considering an Annuity?
Use Strong Words to Use to Let Your Clients Know How Your Business Operates
54% of Americans Own a Life Insurance Policy, But One-Third Not Exactly Sure How It Works
3 No-Cost Creative Lead Generation Ideas You Can Implement Today
Six Reasons Why You Are Not A Strong Leader
When to Start Social Security for Singles, Marrieds, and Survivors
Equities20 hours ago
Value Investors Must Remain Confident When Your Strategy Does Not Appear to Be Working
Operational Excellence21 hours ago
How a $1.9B Firm Went From Losing Clients and Profits to Retaining and Growing
Leadership21 hours ago
Woman: When Will We Be More Than Enough In Business?
Learn2 days ago
Tapping The Unmet Medical Needs Investment Opportunity
Public Relations2 days ago
ETFs Versus Mutual Funds: What’s the Difference?
Learn2 days ago
Bitcoin Will Lose 50% of Its Market Share to Ethereum in Five Years
Learn3 days ago
A Better Alternative For Diversified Alternatives
Insights3 days ago
Small Business Owners Feel Excluded from the American Dream