How The Ultimate Insiders Use Incentive Programs To Drive Your Competitors Crazy!Part Six
As you previously discovered in part five, about strategically using some really cool, low cost high powered incentive programs.
It’s a proven way to create some serious long term repeat customer and client and employee/associate loyalty. Don’t you agree? Now then, as you recall in part five, it ended with you asking questions.
Mainly, you wanted to know (more like discover) how was our extremely savvy restaurant owner able to initiate, let alone implement all the various (yet to be proven!) marketing strategies and tactics, if they only had a mere $2,500 dollars in their slush/marketing fund?
It would appear on the surface initially, to be a bit of pickle, would you not agree? Let’s look under the hood and see if this is really an unsolved mystery or not…
Because more than likely, there’s a completely logical (not to mention) extremely profitable marketing explanation! Let’s have a look and see!
Have You Finally Seen Enough To Realize You Definitely Need To Be Utilizing Some Proven Incentive Programs Or What?
Now then, on to the question (s) at hand. First off, remember the savvy restaurateur originally accepted $2,500 dollars (or X) in cash upfront from another local business owner/service provider, in exchange for the exclusive rights to leave their extremely time sensitive VIP new customer only discount coupons, on either the car seat or mirror of the restaurants customers.
Now let’s do some marketing math.(You know, some of that lifetime customer value type of marketing math. Because the restaurant is fairly upscale, that means some of these customers (more than likely) earn anywhere from high five or six figures per year, right?
Which means, since they’ve got lots of discretionary income, they’ll be spending lots of it! So the restaurant owner has the jeweler (or savvy company or service X) run their lifetime customer value numbers too.
Which (as you already know) and appreciate, includes repeat purchases, referrals, testimonials and all upsell purchases etc!
After the jeweler runs those initial numbers, they readily agree with the restaurant owner, that it’s more than worth it to invest $5,000 dollars upfront for this monthly exclusive right!
Now the restaurant owner shows the jeweler how they can creatively structure the this particular co -op arrangement, so it potentially can cost the jeweler little or nothing upfront!
Here’s how; the jeweler will (via the restaurant owner) go get two other savvy think outside the box business owners to piggy back on side B of their index card, by offering one of their best market tested lead capture page type of extremely time sensitive offers on side B.
And they’re each willing to invest $3,000 each, because just like the jeweler, they’ve got lifetime customer values too!
Well now, let’s see how things are shaping up for the jeweler now! They charged two other local businesses, $3,000 each to piggy back on side B of their offer and ended up netting $1,000 dollars!
Plus they net 100% of the entire back end repeat business from now on! Or the savvy restaurant owner can keep whatever they charge the two business owners on side B, and explain that the jeweler will still net 100% of the entire back end sales from now on! (Remember, the jeweler probably doesn’t think this way about marketing! So it won’t occur to them to leverage the side B of their index card.)
Unannounced Incentives Equals More Positive Word Of Mouth And Mouse!
In any event, the jeweler will give the restaurant owner(s) and their entire staff, their choice of any one piece of jewelry, at the jewelers actual cost! With one exception!) The jeweler will really make sure that restaurant owners female front desk staff will have some really eye catching earrings, necklaces and or bracelets etc!
Because you can bet, the female customers will want to know where they got them! And that’s when the restaurant associate will pass the jewelers card to whomever asks and on the back side, it will have the persons name.
The associate will simply hand write in a date fourteen days out. And after that, the VIP new customer only discount rate expires.
How’s that for generating some really powerful long term positive word of mouth and mouse? Now has the question of whether some proven incentive programs can and will make you more money, been answered to your satisfaction? If so…..
Please list at least two simple spin off concepts (in the comments section below) that you can apply to your business, product or service in the next 30 days or less!
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Hi Mark,
Your post offers a new dimension of prosperity to your readers.
It is important to offer incentive programs that get results. So many business people waste money and squander goodwill by setting up incentive programs that do not work.
Rachel Lavern recently posted…Brand the Heck Out of Yourself
Boy you got that right Rachel!
Far too many cash starved small business owners and or service providers are stuck in
the traditional way of doing things!
And unless you have extremely deep pockets,
it simply won’t work for the typical small business owner with extremely limited funds!
Hopefully, the proven marketing solutions you and I advocate for, will start to become embraced
more and more! Thanks for stopping by and sharing your thoughts and your support! Both are much
appreciated!