The problem, and how you can fix it.
Most marketing and advertising campaigns focus on generating new business or attracting new customers. Unfortunately, some of these campaigns actually have a negative impact on their existing customers.
| A personal example: My local Financial Establishment has a promotion for signing up with their credit card. It’s something to the effect of “you can win an exotic trip” by applying. Who wouldn’t want a chance at that? So me, being an existing card holder with this particular establishment, asked the teller if I am automatically entered since I’m a current member. Her answer: “it’s for new customers only”. |
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“But, I want a chance to win the trip. I’ve been a card holder for quite a while with you. Are existing card holders not eligible for the draw?”, I asked.
“Sorry, it’s only for new customers that sign up for (this particular credit card)”.
My first instinct was to say: “That’s bullsh*t!”. I didn’t, though, but that was my initial reaction.
In her defense, these rules were implemented by the Credit Card Company and not by them, which I found out by asking a few more questions. But most people probably wouldn’t have probed that far. They probably would have a similar initial reaction to mine above, and left with a feeling of being taken for granted. In my opinion, this generates one of three possible responses from your existing customers.
1. “Oh well, I guess that’s the way it is.” – many will either forget about it completely, or they will accept it but with a feeling of resentment for being overlooked as a loyal customer.
2. “I’m cancelling my service with you, and then re-applying so I can be eligible for the offer.” – Yes, this actually happens. This is counter-productive and wastes your customers time, and your company’s time.
3. “I’m cancelling my service with you, and signing up with your competition.” – While I have not researched any specific statistics, common sense suggests this probably happens more than many will admit or worse, even realize. Chances are you or someone you know has done this.
So, what can you do to avoid this from happening to your business? Send out a little blurb to your clients such as:
Bill – You’ll likely see “Promotion X” being advertised soon in order to generate new customers. While that is its main purpose, I certainly wouldn’t want to fail to reward you, one of our most valued customers. So, if you’d like to take advantage of it too, you can do so anytime before the deadline date. Ask I ask is that you give me two referrals I can send some information to and use your name with.”
Wow. Not only have you solidified your relationship with your existing customers by including them in upcoming promotions that specifically attract new business, you’ve also created a way to ensure your prospect list grows by two referrals should your existing customers want to be included in the promotion. Win for your existing customer – Win for you.