A couple of months ago my fiancée and I had dinner at a nearby restaurant, and after the meal they gave us this envelope.
As you can see, it offers two rewards. At the very least it promises three dollars off your next order. It also entices you with the possibility of a bigger reward, but you won’t know what it is until you give the sealed envelope to you waiter upon your next visit. It could be an additional $5 or $10, or even $500. It’s an intriguing opportunity and it’s hard not to want to go back for another dinner.
I wonder why hobby shop owners don’t do something similar. Call me crazy, but if I were an owner I’d be doing everything I can to get my customers to buy my products, and a big part of that effort would be directed at my existing customers.
I’d periodically have flash sales and alert customers via email. Imagine, “25 percent off all plastic kits on Saturday from 10-noon."
I’d offer a rewards program for frequent buyers. For example, get a $10 coupon for every $200 you spend.
I’d offer a birthday discount, like 20 percent off order on your birthday.
I’d give a reward for volume purchases. For example, spend $250 and get $20 off your next purchase of $100 or more.
You get the idea. I realize there’s be a cost to programs like this, but I have to believe that $25,000 in revenue, for example, with a rewards program is better than $15,000 without one.
P.S. If you’re wondering what we ultimately got in that pretty red envelope, well, it’s a funny story. I didn’t realize there was an expiration date, so we didn’t get to use it. Turns out it was good for $50!