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

Advisors such as Lentz, Bender and Friburg suggest a variety of creative ways to reward good customers and encourage them to return:

* Offer frequent framing programs. Customers often enjoy pursuing a purchasing goal at a single store in order to win a reward, whether it's a gilt certificate or a percentage off the next purchase.

* Hold special, invitation-only events. Nothing makes customers feel more special than to be "singled out" to attend an event just for them, whether it's to a show of their favorite artists' work, a holiday party or a customer appreciation day.

* Recognize customers' birthdays or other special days. Customers are bound to receive a number of congratulatory cards and gifts on their birthdays, graduations and anniversaries. But how many will come from their picture framers? Many of today's point of sale software programs allow retailers to keep track of their customers' important days. A customer who receives a card and gift certificate is sure to think well of the framer who sent it--more important, she will most likely come to the shop to redeem the reward.

* Offer unexpected services. Write handwritten notifications of new merchandise, or offer perks such as free coffee, snacks, pens or coffee mugs to make your customers' experience with you more enjoyable and memorable.

* Send "thank-you" cards. A mailing of personalized "thank-you" cards is just what Lynn Cowan, owner of Woodland Gallery in Elizabethtown, Ky., is considering adding to her own frequent framing promotion. "We've had customers who have been with us fur all of the 12 years we've been in business. 1 think it's a good idea to send them a card with a $25 certificate to say 'thanks.'"

The Power of Appreciation

It's true that a good deal, in the form of a discount, can at tract customers. But while marking down slow moving inventory is sometimes necessary, retailers may want to resist the impulse to engage in price wars with competitors. After all, price wars can leave both sides battered. And at best, "good deals" may tram customers to "wait for the sale," at worst, they can result in slave-wage price points for framers.

With that in mind, framers should not have to resort to deep discounts to build their customer base, said Lentz of SCORE. "Small retailers can't compete with the big boys on a daily basis by discounting," he said.

Personalized, reward-based promotions, on the other hand, can become a frame shop's strongest selling point and its most powerful promotional tool. They offer framers an opportunity to connect with their customers, create a fun atmosphere and have greater control over their profits. In the cud, such programs are less likely to attract bargain hunters and more likely to create ideal customers: those who return frequently, make multiple purchases and refer friends and family to the business.

It's for that reason that Cowan of Woodland Gallery has decided her frequent framer program--in which customers receive $30 off their next framing order after spending $500--is here to stay. "I mentioned dropping this program to my accountant, and he told me not to do it. He told me to think of it as a form of advertising," she explained. "Instead of spending a lot of money on advertising, I can offer this. It gives customers an incentive to come back in and tell other people about us."