Full Version: Perpetual Discounts
From: Buzz [#1]
16 Mar 2007
To: ALL
I am upset and we are going to do something about it!
Our bank just had a promotion for new business and personal accounts. If you open a new account at a certain $$$ level you get a round trip plane ticket to anywhere USA. I have all my accounts at this bank and they say they cannot do anything for me unless it is new money!?!
This really burns me, but many companies work this way.
My cell phone company is always having promotions to get new customers and they rarely do anything to keep their old customers.
We give discounts when you purchase from us;
5% when you buy $500, 7% at $700, and 10% at $1000. Many will spend the $1000 when they originally purchase, but even I would not spend that much each time I buy. I don't want anyone to feel pressured to purchase more than they can afford to get the next discount.
I want to start something new (maybe someone else is doing this already?) I want my current customers to benefit!
My plan is perpetual Discounts. When you repeat purchase from us let us know and we will check your account. As you reach each level you get that discount. Once you reach the 10% level you will get 10% on any and all future purchases.
Small step, but it makes me feel like I did something!
From: Cindy (CINDYM) [#2]
16 Mar 2007
To: Buzz [#1] 16 Mar 2007
I have seen this type of discount level before. You make your regular purchases as normal, and then when you reach a certain $$$ amount, your costs go down by a percentage.
For instance, I think it is RSOwens who has or had the structure that if you reach one level you get 40% off, but when you reach another level, you receive 50% off the catalog prices. (they may have changed this structure).
I think that is a great idea of yours to implement this for your regular clients. I'm going to do some thinking on how to do a benefit for my regular clients. They might not reach a high $$ level, but they are loyal clients.
In regards to your bank, I'm thinking that closing your account and then reopening should qualify you. It would be a pain for you to change account numbers on a number of things (checks, bank stamp for instance), but the cost would be less than a plane ticket.
We had this happen when we bought the house our business is in. The week after we closed, the bank sent us a statement and in that statement it said that if we opened an account during the month of August we'd get an IPod. We opened our account in July. I should have gone down there and pushed it - I think I would have won - but was neck deep in the moving/remodeling phase and it wasn't high on my priority list.
Depending on who you talked to, you might want to keep going higher and find out how important you are to your bank as it is. Talk to the board of director members, the bank president etc. If you are not important enough to satisfy with this small item, then I'd think about changing banks completely.
Cindy
From: Stunt Engraver (DGL) [#3]
16 Mar 2007
To: Buzz [#1] 16 Mar 2007
A very commendable move on your part.
I know how you feel, about being told your old money isn't good enough.
The promotion, should be the promotion, regardless of the age of the money.
On your discount idea, I would think you could automate the tracking of customer spending habits, which would apply the discounts accordingly.
Message 6341.4 was deleted
From: Cody (BOBTNAILER) [#5]
16 Mar 2007
To: Buzz [#1] 16 Mar 2007
Tom,
It was good to talk to you again this morning....and I'm glad you published this on the forum!
Personally, I strongly agree with you regarding what companies do to attract NEW business, while seeminly taking EXISTING customers for granted. I'm sure that's why the "retention department" at many service companies (like our cell phone carriers) have gotten so large - they have to sweep up the frustration and disgust of the "forgotten ones"!
I could really get on a soapbox about this....it really annoys me. But I won't do it right now, because I have several orders to fill for my EXISTING CUSTOMERS!!
Thanks again for bringing this up, Tom!
Cody
From: Buzz [#6]
16 Mar 2007
To: Stunt Engraver (DGL) [#3] 16 Mar 2007
Dave,
We will have to look at the automatic thing. Usually we process the order from the order form and log it into the computer later.
Maybe we have to reverse how we do things and log it into the computer first.
From: Engravin' Dave (DATAKES) [#7]
17 Mar 2007
To: Cody (BOBTNAILER) [#5] 17 Mar 2007
Cody,
This discussion brings up a good question. What do you and others do for existing customers?
I send out thank you cards, but not consistently, and not to every single customer. I need to get better in this area.
I send out a nice gift around the holidays to customers who have reached a certain level of purchases with me.
I get the greatest response when I send local restaurant gift certificates to individuals who refer nice orders to me. That is a habit I want to fuel in my customers and it seems to work. It's a heck of a lot cheaper than paying a staffed salesperson. :-)
EDITED: 17 Mar 2007 by DATAKES
From: LaZerDude (C_BURKE) [#8]
18 Mar 2007
To: Engravin' Dave (DATAKES) [#7] 18 Mar 2007
Yes it is, BUT if you had a staffed sales person, perhap we would actually get to MEET you in VEGAS ( insert evil, couldn't resist the dig laugh here).
From: Harvey only (HARVEY-ONLY) [#9]
18 Mar 2007
To: LaZerDude (C_BURKE) [#8] 18 Mar 2007