As a marketer, one of the most significant traits you can possess is seeing an intelligent idea and knowing how to incorporate it into your business. And when I see things like that, I want to share them with you!
The real magic is being on the lookout for ways to make incremental improvements and finding levers to pull to help your revenue grow are the unspoken keys to business success.
For example, about a week ago, a friend of mine, Shane, was talking about coffee; he really loves coffee! I didn't know his passion for Java or his consumption levels, but it presents a fabulous opportunity.
Shane loves coffee, not just any coffee; he loves Starbucks coffee.
Recently, Starbucks contacted him; Shane drinks a lot of their coffee, enough to rank him among their top 2% in sales and consumption. Shane buys more Starbucks coffee than 98% of their customers worldwide!
Rightfully so, Starbucks now puts Shane in a special position. They are going out of their way to show him how much they appreciate him. Shane receives special offers from Starbucks. They send him all sorts of stuff and merchandise. They even pay for his Spotify account, and I'm sure he will end up with many other benefits, too.
Now, here's what being in that club means to Shane:
He's now even more likely to go out of his way to ensure his next cup of coffee is from Starbucks
He's motivated to drink even more Starbucks coffee; who wouldn't want to be in the 1% club?
And he feels rewarded for his loyalty, and he feels valued by a major beverage company.
From Starbucks' point of view, they're cementing Shane's loyalty to their brand and products.
Think about it, they see the enormous value in a customer like Shane and want him to know it!
Curious, what do you do for your best customers? Do your most loyal customers feel recognized and appreciated by you?
Today, how and how often do you show your appreciation to them?
Before we go any further, I want to set something straight, things are tough right now for microbreweries and massive companies like Starbucks, and one thing you can bet is Starbucks feels like they're getting an enormous benefit by ensuring Shane stays a loyal customer; that's why they're giving me lots of perks and benefits.
Let's explore what this could look like for you and your business
But, if you’re still not convinced, let me make it crystal clear for you; let's not get caught up in the numbers; let's focus on the concept. I want to keep the numbers easy to use to amplify things.
Here’s the story, you've got a microbrewery, you sell on-site, and if someone averaged buying 10 pints a week, they would be among the top 2% of your customers. And an average pint sells for $8.00. That equals $80.00 weekly in gross revenue, or $4,160 annually.
Jennifer someone, who is a regular customer and has reached the 2% Club at your Brewery, and she receives an email from you with the following information:
You welcome her; you express how much you appreciate her and her patronage. You mention that she will be receiving the following for free:
A complimentary piece of merchandise every quarter
50% off our special events, our Christmas party, St. Patrick's Day party, our Superbowl Bash, and our Memorial Day Summer Kickoff Party
So, what does this look like for you, and what does this look like for Jennifer?
For Jennifer, she feels special. She feels a new level of connection to you and your business. Her commitment and her affection for your business are edified. And she will tell others about this particular classification she's achieved; think about Shane here.
Hang on to your seat because this is really powerful!
Here’s why, let's look at the cost for you; your out-of-pocket expense for merchandise is $10 per piece, $40 per year. A ticket to your Special Events costs $20 each, so that's another $40 per year, making the total expense out of pocket $80.00.
You see, this is still a great idea if Jennifer doesn't purchase any additional products from you. But most people would visit your establishment more because of your generosity and appreciation; your business is even more inviting and accommodating to her, so she comes even more!
Consider this, let's be real conservative. Over the next year, Jennifer will average one more beer sale per week real easy, especially because Jennifer's told friends and invited people to visit you. And, if the total is only one beer per week, $8.00 a week, your loyalty program has generated a 10x return on investment. At one additional beer per week, that's $416.00 a year in additional gross revenue!
Best of all, others will want to achieve Jennifer's status, and your competition probably doesn't offer anything like it!
Here's the bottom line, if your Brewery's not where you'd like it to be, I'd make sure my top customers are as loyal as possible to me. That's a smart move going forward.
Another smart move is to jump onto my mailing list. I'm constantly sharing ideas and knowledge accumulated over decades of marketing and business experiences. I'm here to help you; jump on!