Customer Retention: Keep ’Em And Hold ’Em
While expecting no particular response, Faith spent $80,000 to send the missive to his customers. And although he won’t divulge sales made as a result of the letter, he says he was floored by the thousands of calls, letters and e-mails he received from customers expressing pleasure at his letter.
Gisholt also stresses the need for ongoing customer appreciation. Since 60 percent of his dog supplement continuity business comes in on the Web, his CSRs don’t get the opportunity to establish a rapport with customers. So, he recently implemented a call program. About two weeks after new customers place an order online, SmartPak’s CSRs call and give the following message: “Welcome to SmartPak, we’re delighted you’ve chosen to let us help you simplify feeding your dog. If you have any questions or things aren’t working as you expect them to, please give us a call.”
“When we do catch people live, they’re generally extremely happy we’ve made the effort to connect to them,” Gisholt says.
Also as part of the continuity program, his customers receive monthly e-mails several days before their orders ship. At that time, they’re given the option of canceling their orders entirely. While he recognizes that he’s inviting customers to leave every time an e-mail goes out, Gisholt believes it’s the respectful way to treat his customers. Plus, he also gives them the opportunity to add items to their orders and increase their average order value.
Gina Valentino, president of catalog consultancy Hemisphere Marketing, notes that continuous messaging and offers to valuable customers can add to your share of wallet. She notes how computer merchant Dell recently used a direct mail piece to celebrate its 22nd anniversary. Playing off the fact that 22nd anniversary gifts traditionally are copper, Dell sent a direct mail piece emblazoned with a penny in a champagne glass, along with a copper-colored gift card.
