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Building Buzz with a Personal Touch
May 06, 2008
To cultivate loyal customers, try an old-school approach
By Marc Wagenheim
High-value customers are the lifeblood of any organization. Indeed, according to a 2006 study by the Kamaron Institute, loyal customers spend some 80% more than others. Yet, customer loyalty seems to be declining across many industries.
So how can sales and marketing managers help their teams build customer loyalty, turning sometime-customers into loyal ones? Personal, authentic communication with the people who matter most to your business is a good way to start.
You already know customer communication plays a vital role in your company's success. In fact, your sales and marketing teams may be reaching out to customers or prospects throughout the year with sales announcements, coupons or similar materials. Unfortunately, there's a good chance your messages are thrown away with the junk mail that bombards mailboxes each day.
To cut through the clutter of mass mailings, consider communicating with your customers on a more personal level. Whether it's a birthday card, a quick thank-you to a customer for an order or a holiday wish, a personalized message from a member of your sales team tells customers they matter to your business.
Take, for example, the approach of the Busy Bee clothing retailer. The Springfield, Mo.-based business has thrived for more than 75 years, even in the face of stiff competition from much larger national clothing store chains. Brenda Gardner, sales manager for Busy Bee, credits this to two things: excellent customer service and, in return, incredibly loyal customers.
Busy Bee employees accommodate each customer's needs in-store, over the phone or online. As a result, they've created special connections. Two years ago, Busy Bee implemented a business greeting card program to help strengthen those bonds.
As employees rang up sales under each customer's name, they began recording customers' birth months in the database. Soon, they had enough birthdays to implement the card program. Gardner and her team looked at the total sales each customer brought in annually, then decided to send a birthday card to their top ones.
In January 2006, Busy Bee employees began signing and sending a birthday card to each customer on the first or second day of their birthday month. Tucked into the card was a personalized insert from Busy Bee, good for $10 off the customer's next purchase of $10 or more.
Within the program's first month, Busy Bee saw a 42% response rate from the cards. The program averaged a 36% response rate for 2006 alone.
Overall sales for that year went up 6.5%. And though the offer only required a $10 purchase, the average purchase with the birthday card offer was more than $42, post-coupon.
Perhaps even more importantly, Gardner has noticed a profound effect on the customers who redeem their birthday offer: They go out of their way to thank Busy Bee for the cards, more than just saying thanks.
This strategy also works for larger enterprises and sales teams, including those with a dispersed national sales force. Make sure you refer to the following points
• The cards your team sends out should be a direct reflection of your company's values and brand. Find a vendor who will work with you to customize a program.
• An online interface is paramount. When your sales team can access the program through a secure Web site, review their options and select a quantity, such a program becomes simple to use. Make sure the vendor provides centralized billing options and turnkey fulfillment.
• Finally, your team should write short, personal notes inside the cards, or at least sign their names in ink.
Marc Wagenheim is product marketing director for Hallmark Business Expressions (www.businessgreetings.com).
Sales & Marketing Management Magazine
This article is brought to you by Sales & Marketing Management, the leading authority for executives in the sales and marketing field.
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