Rewarding loyal customers – tricks of the trade

If the credit crunch proves to be as bad as some experts have predicted, it’s worth really cultivating your long-term customers. Offering discounts and special buying opportunities to regular customers shows them that you value their custom and keeps them coming through your door. Some ideas you could try include:
Invite customers to trial developing products and services for free:

Asking trusted customers to give you feedback on a new offer before you launch it will give them a sense of ownership over the product. It’s also likely to result in sales later on and good word-of-mouth recommendation.

Hold a preview event: If you're launching a new offer, invite your best customers to a preview event where they can buy it first. Make sure the event has an exclusive feel, that you provide good refreshments and your customers have networking time.

Offer preferential service terms: A large proportion of your profits may come from just a handful of high-spending customers, so it's important to provide them with a special level of service. This could be anything from waiving minimum order quantities to offering an out-of-hours service.

Offer additional products and services at cost: This works particularly well if the products or services are associated - for example, safety equipment to go with machinery. If the order is particularly large, include these extras for nothing.

Reward introductions and referrals: Give customers a reason to recommend you to friends by offering them discounts and free gifts in return for every new customer they introduce to your business.
Offer cumulative discounts on selected lines: Offer discounts to customers when they reach spending targets - for example, ten per cent off their next purchase for every £100 they spend. Make sure you publicise the scheme, though, and any cut-off dates.

work with a related business to offer reciprocal discounts: A classic example is a sports clothing shop that offers discounted membership at the local gym for purchases above a certain value. In return, the gym offers members discount vouchers for the store and access to special promotions.

‘BOGOF’: Buy one, get one free is a tried and tested method of encouraging short-term repeat sales. Be careful not to overuse this tactic, though, or people might start to question the quality of the goods.