Loyalty program?

[WillS]

I tried searching through other threads to find something in regards to loyalty programs and can't find anything. I'm trying to find out how you run a loyalty program with customers. Are you? We have had 3 people in the last week ask about loyalty, membership or even VIP memberships. Anthem Country Club, Henderson, a high end area we clean in often, 2 customers asked if they could pay something to be in a VIP membership program to where they received cleanings more periodic? Benefits, etc. Is anyone doing anything like this? Ideas?

We do offer discounts to return customers and money off in services based on referrals they send as of now.

 

[Hoody]

Yeah we did a Keep It Clean membership.

We gave them a choice of bi anually and 3 times a year cleanings. Bi-annually received a 10% discount off retail price. 3 times a year received 15%.

Their percentage discount included additional services they purchased that werent included in their program scope.

If they signed a 3 year agreement we would give an additional 5% discount, and 5 year was an additional 10%.

The cleaning program was paid for monthly. So lets say their cleaning program was bi-annual and $600 at each cleaning with the discounts, they would pay $100 a month.

600x2 / 12.

If they had a 3 times a year at 600 per cleaning with discounts calulated in, it would be 150 a month.

Works for both residential and commercial.

 

[hogjowl]

I do the normal "always clean" or "stay beautiful" SFS program.

 

[QDCC-Barry]

I was thinking about doing something like this before I read your question back on Dec 30 but I didn't have anything to say then. I think I've come up with something I'll try this year or so. It will take that long to figure out if it works I think.

First, around here, since the economy is really STILL not recovered to the point it was before (pre-2007) along with the fact a lot of hard surface, both tile and hardwood, have replaced carpet- hardly anyone cleans with the frequency they did before. I use to have many customers that cleaned every 3-4 months, more that cleaned twice a year. Not many do that anymore. It seems more and more customers are more like every 2 years now. There has been many customers that it's been so long that I heard from them I figured they died, moved or found someone else. Nope, the call me back eventually and have me clean. And no one else cleaned in the interim. So I didn't lose them but their frequency has been greatly lengthened.

So while it would be nice to have customers clean TWICE a year, the fact is if I could get the majority of my current database to clean ONCE a year I'd be happy as hell. And the fact also is they probably won't clean twice a year no matter what kind of incentive program I offer. So I'm designing this program to draw return customers back yearly at least. At least that's the plan that makes sense in my head. We'll see how it works in reality. At some point I'll add in incentives for upholstery and tile cleaning.

thoughts?

 

[PrimaDonna]

Wow...that's a big discount package. I might start with just 20% off and see how it goes. Don't give away the cow with the milk! If you find that it's not enough to tempt them or you aren't getting the response you wanted, then maybe tweak the offer and up the ante. With this one....how much more can you give away if it doesn't get the response you are hoping?

We just ran a promo/offer that I posted on Facebook and sent out via Service Monster to our client database. Most all the people that booked were existing clients. We offered one couch clean and protect for 50% off (Normally $150, with special $75) and then 10% off any additional work they had done at the same time they did the couch offer. Had a great response and a ton of upsell/add on. We plan to run a different Burdick's Bargain Buy each month in our slow periods (Feb, March and maybe April if we have a late start to Spring. We will also offer again in July and August as they are traditionally slower months due to summer vacations).

There is something to rewarding your loyal customers with discounts to keep them coming back instead of just offering discounts to new customers to get them to try your services. As they say, reward/reinforce good behavior if you want more of it. That being said, we are tying to figure out a program. Toying with a point system for every dollar spent. Kind of like the grocery stores and airlines do. Then they can redeem points for various percentage off their next job. Some people will get a thrill out of saving up enough points over time to get 50% off an entire work order where others will like to cash in more frequently for 10 or 20% at a time. Still trying to figure out how it will all work, but that is what we are toying with.

 

[QDCC-Barry]

Thanks Meg for your input. A couple of things...... It's 20% off anything ABOVE our minimum...meaning if a certain area's minimum is $150 and the job is $200 then it's 20% of $50 - or $10.00 - NOT $40.00. Also it is for cleaning of areas where the customer has pre-vacuumed and moved whatever furniture. I expect additional protector sales beyond the 2 free rooms. and $5 off $45 for the stairs isn't much.

Of course I hope the customer doesn't minimized it like I just did!

I just realized by looking at the ad again I need to put the value of the 2 free rooms of protector on there.

 

[PrimaDonna]

Thanks for clarifying....but that all seems so confusing to keep track of, and to do in order to "qualify" for the discount.

Imagine how the customer would feel trying to figure out what dollar amount of savings they are really getting?

There is a lot of text, what if they didn't realize or forgot that they needed to pre-vacuum and move furniture.? I know it's not your fault, after all it IS written in the offer, but you KNOW that people won't see it. Imagine the feelings it will create when you show up and then they don't "qualify" for the deal. Not a positive moment of truth.

What if you took out all the "requirements" and lowered the % off? Give them 10% off everything, no min charge and ...."open area cleaning only, furniture moved at and additional charge"

I think you are on the right path....just needing some refining. I'd love to know what others thinks as I'm only sharing my opinion and I have been known to be wrong.....

K.I.S.S. - for yourself, and for them.

 

[Doug Cox]

I do the "You keep calling and I'll keep coming" program.

 

[hogjowl]

Yeah. The "reward" my customers get is another outstanding cleaning and the opportunity to see me again.

 

[Doug Cox]

It's good to be an O/O.

 

[jcooper]

So I'm designing this program to draw return customers back yearly at least. At least that's the plan that makes sense in my head. We'll see how it works in reality.

I agree, Berry. Once a year would be ideal.

 

[QDCC-Barry]

Thanks for clarifying....but that all seems so confusing to keep track of, and to do in order to "qualify" for the discount.

Imagine how the customer would feel trying to figure out what dollar amount of savings they are really getting?

There is a lot of text, what if they didn't realize or forgot that they needed to pre-vacuum and move furniture.? I know it's not your fault, after all it IS written in the offer, but you KNOW that people won't see it. Imagine the feelings it will create when you show up and then they don't "qualify" for the deal. Not a positive moment of truth.

What if you took out all the "requirements" and lowered the % off? Give them 10% off everything, no min charge and ...."open area cleaning only, furniture moved at and additional charge"

I think you are on the right path....just needing some refining. I'd love to know what others thinks as I'm only sharing my opinion and I have been known to be wrong.....

K.I.S.S. - for yourself, and for them.

My wife said the same exact thing. I'm playing in my head with $10 off (but again above the minimum). But as you mentioned it is still a bit confusing. I realize a straight % off the total sale is the easiest but I feel my prices are already as low as I want to go. My average is around $200 but I do a lot of my $120 minimum jobs and I'm not so anxious to go below that, along with the 2 rooms of free protector. If my job average was more like $600 then I'd feel a bit better.....maybe!

I do like the verbiage about open area and additional charge for furniture moving. I should have worded it that way originally!

 

[PrimaDonna]

I like your wife....she's a smart woman.

Here's a thought....raise your minimum charge, so that when you give the discount, you can make the minimum charge you are currently charging. (When is the last time you raised your prices?)
If your min. goes up just $15 to $135 and you give 10% off, you're at $121.50. And then you are making $15 more on every minimum job that doesn't use the promo.

We just ran a promo for 50% off a single couch (which is normally $150, our minimum charge) and then 10% off any additional work they do at the same time as the couch promo. I thought we were going to have to eat some to just stay in front of our customers and keep some cash flow during the slow season. Sent it out via service monster to all our clients. Completed 4 jobs as a result of it so far. One was $117.66. so a bit below our minimum. All the others added on.....really added on. 4 jobs, $3178.20 so far and at least 5 more jobs scheduled with add ons on top of this. Try it....test it out. I bet you most people will add on and do more than the promo (you always have a handful of cheapskates, but the rest should make up for it).

Subconsciously, people buy more, when they think they are getting a deal. I have heard this concept before, but didn't really buy into it. Now I'm kicking myself for not having offered this type of thing sooner. This was our first try at it. And since most of the people who took advantage of it were existing customers, I realize how valuable having some sort of a loyalty program could be for us.

 

[QDCC-Barry]

Negative Nellie here..... Yeah I raised my prices last year. Went from 3 rooms for $100 to 3 for $120- each additional $40 - which is now my minimum for areas nearby. Farther out cities are $150/$200 depending on how far. Once I grow enough here locally I'm dropping the farther out areas.

Most cleaners around here are in the $25-$30 per room range. I see advertisements all the time that are 4 rooms for $99. That doesn't make me want to lower my prices but it does make me hesitate to raise them more. I get $45 for a set of stairs...up from $35 last year. Lots of cleaners are $25 per set. No one is near the $85 Mikey gets!!

I get a lot of calls from people who when they hear my minimum go elsewhere. That's fine by me - their loss - BUT I'm just not feeling the confidence of going up more.

I'm aware of the theory about people spending more when they think they are getting a deal. I'd think as a whole So Californians have at least some extra cash to spend but it seem not to be so. Tightwads living in a 4000 sq/ft house thinking they should be paying $150 to clean all the carpet!

I was told years ago if I started taking credit cards that customers would be more likely to add on knowing they could put it on a card. NOPE...I've seen absolutely no change in that area either.

I currently also working on SEO with a guy and other related stuff. I'm not starving by any means but just to average one more job a day would really make a huge difference at the end of the month. That's one of the few advantages of being an O/O. Small advances can be worth a whole lot more in the owners pocket.

That all being said....I'm still considering all your words of advice. Thank you so much!!

 

[PrimaDonna]

Only way to get rid of those price shoppers is to not be priced in or close to their price range.

If you have value added service, do things differently from those coupon guys to set yourself apart, people will have no problem paying that. Problem is, they see the price and BELIVE that all carpet cleaning is the same. It's your job to educate them so they see the difference. And that starts from the moment you pick up the phone and speak with them. Set yourself apart there, and they will realize you are more, but you are different because you didn't treat their call like the "other cleaners" they called that offer those deals.

We raise our prices EVERY year. 2 rooms $180, each additional room $80 is where we are for 2015.

 

[QDCC-Barry]

Depending on how much you pay your techs I should come work for you... Have any openings?

 

[PrimaDonna]

Negative Nellie here..... QUOTE]

As I learned from the wise Steve Toburen, try it for 3 weeks. You can always go back if it doesn't work. Then you can be as negative as you want and rub it in my face. But you'll never know, unless you give it a shot.

 

[PrimaDonna]

Depending on how much you pay your techs I should come work for you... Have any openings?

No openings for people who have industry experience. We like them green so we can train them our way. Old habits are hard to break....

 

[QDCC-Barry]

Plus the commute would be a obstacle.