Treat Your Current Customers Better than Your New Customers
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.
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.
(Copyright © MMXVIII, Shep Hyken)