Are you providing discounts to your customers?

April 30th, 2016

Customer Discounts | LP Solutions | Advice

 

Are you providing discounts to your customers?

Discounts can be in the form of free service or product. Discounts aim to benefit both the customer and the business owner. For the customer, it is a direct incentive, while for the business owner it is a long-term investment in the existing and potential customers. How do you go about offering discounts to your customers? How are you making sure that such discounts have a positive impact on your business? Customers may need to be rewarded in the form of discounts to remain loyal.

Are you giving your customer a discount for putting up a yard sign?

A yard sign will be seen by neighbors of the customer, which will help to attract potential customers looking for the services you offer. Your reward should be based on the length of time the customer leaves the yard sign up. The longer it’s up, the more of a discount they receive.

Are you giving your customer a discount for paying cash?

Offering discounts for customers who pay cash will reduce your time involved for check processing and credit card fees. Also, eliminate account receivables with customers who pay on credit. You can have discounts apply with invoices over $200, $300 or $500 payment in cash. It will encourage your customers to spend more, which is a plus for the company. Make sure you know this up front prior to the job beginning.

Are you giving them a referral bonus?

Referrals are the seeds to your business growing. You should reward your customers for any one of their friends who uses your services. This will create a chain of referrals and your customers will gradually increase.

Are you selling them an extended fixture warranty for the faucet you just installed?

Customers need assurance of the quality of product they are getting. If you are selling them an extended fixture warranty for what you have installed, they will feel safe and confident to purchase fixtures from your company for the extended warranty. Have different extended warranty pricing, one to ten years.

Are you selling a low cost yearly maintenance agreement for free house inspection?

It is the perfect way to retain your existing customers. During the free inspection, you might find something that needs fixing which means more sales for your company. Free inspections are great when your employees are down and have nothing to do. Send idle employees for inspections. If you have limited access during your inspection, make sure you have something to take pictures with so the customer can see the problem. It will make them feel more confident knowing that you are not just making up a story.

Are you advertising on free websites of all your deals this month?

It is free, what do you have to lose? It is a WIN WIN scenario where potential customers can contact you to take advantage of the deals you have to offer. Post an ad on Craigslist for free and use this platform to market your company.

Do you have a monthly deal on a certain item?

To keep customers glued to your company, you should put up an item every month showing your monthly sales. Make sure the sale mentions, “July’s is 25% off name brand disposals”. Your customer does not have to search for when the ad is valid. Do your customers text? Get their approval and send out texts when you have monthly deals or spur of the moment sales. When customers know about your monthly deal policy, they will be checking your company every month to see what you have to offer. Provide up and coming sales 12 months in advance so they can see what you have to offer, so your customer can plan ahead.

Do your technicians carry $20 gift cards, to high-end restaurants with them, when a customer spends over a certain amount?

With a culture of “what’s in it for me”, talking personally with your customers puts you on a personable level. You are not just a “tech”; you are there to create longtime customers that will always want to spend more on your services. Have your tech find their favorite restaurant and offer the $20 gift card to a customer who spends over a certain amount. The amounts are up to you.

Are you giving your customers a discount if you use their picture and a testimony on your website?

Potential customers will trust the reviews of other customers who you have worked with. Powerful stuff! Give discounts to customers who agree to have their picture and testimony uploaded on your website. This will draw more customers as they will have faith in your services and products.

Do you do a free inspection when you go out to do every single service call?

A free inspection will have you earning the trust of a customer. Free inspections can yield new opportunities for your company as there may be a hidden problem the owner was not aware of that needed replacing or fixing. Make sure you let them know it will only take 5-10 minutes for the inspection. If you tell them a ½ hour, that is time they were not planning on and may cut into the customer’s day. Simply asking them for a free 5 minute inspection is no big deal.

Are you giving discounts to the military, nurse, police, EMT and fire fighters?

The police, nurses, the military, EMT and fire fighters all interact with many people on a daily basis. Offering them discounts on referral basis will increase your customers. These first responders are a very tight knit group of people and tend to stay with people that take care of them. Show them the utmost respect in all you do for them.


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