Boost client loyalty with reward programs: keep customers coming back for years by showing them that framing at your shop has its own rewards

Art Business News, August, 2003 by Tricia Bisoux

One of a retailer's biggest challenges isn't how to get customers to come into the store--it's how to get them to come back. To achieve that goal, small business owners often experiment with sales, seasonal promotions and advertising to attract new customers and encourage old customers to return.

Many retailers have found, however, that building a loyal client base often doesn't depend on gimmicks, promotions or even price points. Often, it's simply a matter of finding ways to say "thank you" to customers for their business. Customer rewards programs, which can range from free cups of gourmet coffee to frequent framing cards to invitation-only events, can do what a dozen discounts cannot--turn a customer's first-time purchase into a long-term relationship.

The goal of customer appreciation-based promotions is to make clients feel special every time they walk into the shop. The result, framers have discovered, is a growing base of customers who return because they enjoy the relationship, not because they want the best price on the block.

Tangible Rewards

Finding tangible ways to say "thank you" to customers has helped Amber Nye of the Hunter Lea Gallery & Frame Shop in Ludlow, Vt., find and keep customers, even in tough economic times. Customers who make five custom framing purchases at Hunter Lea Gallery receive 50 percent off the sixth. In addition, customers who bring in four or more pieces at one time get 10 percent off the entire order.

Nye views these promotions as different from straight discounts, not only because she is happy with her final profit margin, but also because the program encourages customers to make multiple purchases. "I've read that people purchase custom framing an average of only six times in their lifetimes, so we want to encourage them to make those six purchases with us," said Nye.

And, if Nye is lucky, the program will encourage them to make a few more, she added. So far, customers have enjoyed the challenge of filling up their frequent framing cards. To date, the shop has 225 active cards, and a number of customers, Nye noted, have gone through one or two cards already.

"We're in a ski resort town, and we have a lot of second homeowners coming up from Connecticut and New Jersey," she pointed out. "Because of our frequent framing program, they're actually starting to bring pieces to us from home."

Bellevue Art & Frames of Bellevue, Wash., offers its clients a similar program, in which customers who reach $1,000 in purchases receive a $100 gift certificate. Customers can use the $100 on anything in the store, from its custom framing services to its inventory of art materials, jewelry, candles and gifts.

"The $100 gift certificate is a significant reward," said Robin McLane of Bellevue Art. "When somebody has spent $1,000 with me, I want to acknowledge them with more than just a 'thank you very much.' The $100 is a tangible reward for them, and if they've spent $1,000 with me, I've still got a good margin."

Joe Lentz, a business advisor from Panama City Beach, Fla., agreed that customer incentives can be the lifeblood of a small retail shop when it comes to cultivating a consistent customer base. Lentz is a volunteer with the SCORE Association of Washington, D.C., which provides advice to small business owners nationwide.

"Any small business owner who tries to maintain a status-quo attitude is bound to suffer. In order to keep and grow the business you have, you need to be aggressive in your thinking and creative in the way you entice customers to keep returning to your store," Lentz said. "Loyal customers are your foundation. Rewarding customers for being your best customers makes good business sense."

A Competitive Edge

The reality of today's market is that competition among frame shops is increasing at a time when many people are cutting back on discretionary spending. Framers are finding they need more than a quality product to stand out from the competition, whether it's the mom-and-pop shop on the corner or the big-box retailer down the street, remarked McLane of Bellevue Art & Frames.

"We're in the Seattle area, so our custom framing department took a big hit when the dot-coms went downhill," said McLane. "In our area, we have 40 picture framers on the east side alone, and a big-box chain has just opened in the area. In this economy, we have to do whatever we can to survive."

Michael Couvillon, owner of The Frame Corner in Austin, Texas, also finds that the current economic slump has made it necessary for him to find more aggressive ways to win customers over. "This is a competitive market, and there are a lot of frame shops out there. What I offer is not that much different from what many others offer," said Couvillon. "What I can offer is a relationship."

To help build customer relationships, Couvillon offers a loyalty incentive. Customers who spend $750 with the shop receive $50 off their next purchase. "With the frequent framing program, people remember our name. They come back to us to accrue that $50 reward," said Couvillon. "Fifty dollars isn't really that much money compared to the dollar amount they spend, but it offers a huge benefit to us. It gives us a connection with customers, which is one of the most important things in building a loyal customer base"