Schedule a demo

Why Thank­ing Your Cus­tomers is so Important

The fact that you run a busi­ness that is still func­tion­ing means that you know it’s impor­tant to thank your cus­tomers! In an econ­o­my where com­pe­ti­tion is ever-increas­ing and con­sumers have more options than they’d ever know what to do with, it’s even more cru­cial to cul­ti­vate a loy­al cus­tomer base. So today we’re going to take a look at why — and how — to thank your cus­tomers effec­tive­ly with­out break­ing the bank.

Why it’s a big deal

Let’s just look at some num­bers, shall we?

  • You know the 8020 rule — 80% of your company’s future rev­enue will come from 20% of your exist­ing customers.
  • Accord­ing to Forbes​.com, attract­ing new cus­tomers costs a com­pa­ny five times more than keep­ing an exist­ing customer.
  • The same arti­cle notes that it’s about 50% eas­i­er to sell to exist­ing cus­tomers than to brand-new prospects.
  • Accord­ing to a Gen­e­sis Glob­al sur­vey cit­ed by cus­tomer expe­ri­ence firm Smile​.io, 68% of busi­ness­es have lost a cus­tomer because that cus­tomer felt the busi­ness was indif­fer­ent to him or her.
  • The same sur­vey also revealed that 86% of Amer­i­can shop­pers are will­ing to pay more for bet­ter cus­tomer expe­ri­ence, and 38% attribute a good cus­tomer expe­ri­ence to personalization.

Final­ly, a Har­vard Busi­ness School study deter­mined that increas­ing cus­tomer reten­tion rates by 5% can increase prof­its by 25% to a whop­ping 95%.

To sum­ma­rize: Your cus­tomers need to know you appre­ci­ate them — indi­vid­u­al­ly and per­son­al­ly. Ensur­ing they know their val­ue to your com­pa­ny will help keep them brand-loy­al. Keep­ing them as your cus­tomers allows you to most effec­tive­ly sell, increase prof­its, and keep your busi­ness thriving.

And how do your cus­tomers know they’re appre­ci­at­ed? You might have this already in hand, but it’s nev­er a bad thing to get more ideas. So read on!

The Pen Is Mighty

Accord­ing to account­ing solu­tions firm Due​.com, includ­ing a sim­ple state­ment of thanks on an invoice can increase the per­cent­age of invoic­es paid by more than five per­cent. When you’re a con­tract­ing firm with invoic­es rang­ing from sev­er­al hun­dred to sev­er­al thou­sand dol­lars, does that ever add up!

In an era of e- every­thing — e‑mail, e‑billing, e‑newsletters — go ana­log and send a hand­writ­ten note. You can even jot a quick line on your invoic­es if you mail them, or send a sim­ple, classy (and, of course, brand­ed!) thank-you card. But the pow­er of just a few sec­onds to write a kind, appre­cia­tive word to a cus­tomer can be e‑normous. It’s per­son­al, it’s sim­ple, and it’s e‑ffective. (See what we did there?)

As you write those notes, make it more than a per­func­to­ry Thanks, Jim!” Take an extra 45 sec­onds to write a sen­tence or two, using some pow­er words to make the most sig­nif­i­cant impact. Make sure it’s nat­ur­al, first of all, but include words like grate­ful”, appre­ci­ate”, rec­og­nize”, and acknowl­edge” — accord­ing to cus­tomer ser­vice expert and author Adam Toporek, these words can help express your thanks with a lit­tle more gen­uine oomph.

While you’re liv­ing in the writ­ten world, con­sid­er allo­cat­ing some bud­get for hol­i­day cards. Remem­ber­ing your cus­tomers at Thanks­giv­ing or Christ­mas with a sim­ple card recap­ping your year and thank­ing them for being part of it can be an effec­tive way to build a lit­tle top-of-mind aware­ness and stand out among the busi­ness­es they’ve worked with over the course of the year. Or, if you don’t want to get mixed in with the rest of the sea­son­al mail, send a card for a dif­fer­ent hol­i­day, like Valentine’s Day, East­er, or even Christ­mas in July. Final­ly, if your busi­ness offers a dis­count for vet­er­ans, con­sid­er pulling the list of folks who have qual­i­fied for it each year and send­ing a sim­ple note thank­ing them for their ser­vice on Memo­r­i­al Day, Vet­er­ans Day, or the Fourth of July.

A Pic­ture Is Worth A Thou­sand Words

To build on your thank-you cards, con­sid­er some oth­er (free!) ways of using visu­als to rein­force your grat­i­tude. This is where Com­pa­ny­Cam can be great! When you fin­ish a customer’s project, cre­ate a cus­tom gallery, with Before and After pho­tos and a clean time­line. It only takes a few min­utes to cre­ate some­thing so per­son­al that also shows off your work. Bonus, they have those pho­tos for doc­u­men­ta­tion with their insur­ance com­pa­ny, banker, or oth­er records, so you’ve giv­en them some­thing with actu­al val­ue that, thanks to Com­pa­ny­Cam, cost you about two min­utes. Cou­pled with a per­son­al­ized email, this can have a real­ly last­ing impact.

If you have cus­tomers who are espe­cial­ly social media-savvy, you can also ded­i­cate a few posts per month to cus­tomer shout-outs. A sim­ple Insta­gram pho­to (again, with Com­pa­ny­Cam, you’ve got albums full of pho­tos at your dis­pos­al!) or Tweet with a gen­uine sen­tence of thanks to a cus­tomer, iden­ti­fied by name (stick with first name and last ini­tial if you aren’t sure they’ll like the shout-out, or if you’ve had an awe­some inter­ac­tion and they’re OK with it, tag them for extra empha­sis) can go a long way in a cul­ture that thrives on recognition.

Actions Speak Loud­er Than Words

If your bud­get allows, con­sid­er what you might be able to tan­gi­bly offer repeat cus­tomers. It doesn’t have to be much, and it doesn’t even have to be con­sis­tent! A ran­dom rebate for cus­tomers who have done busi­ness with you before can cre­ate a sto­ry they’ll love shar­ing. For instance, give your sales team the dis­cre­tion to offer a $25 Thanks for your loy­al­ty!” dis­count each month for a cus­tomer who they’ve worked with before, and make sure your accoun­tant item­izes it that way on the invoice and the sales­man writes a per­son­al note on the bill before it’s mailed. On a bill mea­sur­ing in the hun­dreds or thou­sands, it’s not a huge deal to your bot­tom line, but imag­ine how val­ued that cus­tomer would feel open­ing the mail and hav­ing $25 put back in their pock­et, just because.

Anoth­er idea, if your bud­get allows, would be a loy­al­ty pro­gram, offer­ing spe­cial dis­counts or upgrades for top cus­tomers. Depend­ing on your indus­try, this could be a tricky thing to pull off for con­trac­tors, but if imple­ment­ed cor­rect­ly, it can be effec­tive. Maybe it’s a main­te­nance pro­gram (for a small fee, you’ll inspect the giz­mo you installed on an annu­al or semi-annu­al basis, and any repairs would be done at a 5% dis­count) or a com­pli­men­ta­ry upgrade for cus­tomers who have worked with you on two or more past occa­sions. Look for ways to increase the val­ue of work­ing with you again — even if cost isn’t the most effec­tive dri­ver for cus­tomers to a busi­ness, it’s still a nice way of say­ing thank-you and mak­ing pre­vi­ous cus­tomers feel exclu­sive and special.

Final­ly, time is mon­ey, and if you can’t swing a dis­count pro­gram, you can still like­ly spare a few min­utes for a per­son­al phone call or two on a reg­u­lar basis. Ask your sales team to pro­vide you the name and phone num­ber of repeat cus­tomers, and call a cou­ple of them each week or each month just to say thank-you. A call from some­one in lead­er­ship at the busi­ness is still a big deal to many cus­tomers. It doesn’t need to be a long con­ver­sa­tion, but a quick call to say you appre­ci­ate that they have so many options but they came back to you to ser­vice their giz­mo can set you far apart from the every­day trans­ac­tions they make. 

Your mom always taught you to say please and thank-you…and those lessons nev­er get old. Mak­ing sure you appro­pri­ate­ly and ade­quate­ly thank your cus­tomers is crit­i­cal, but not hard. Take the time to do it well…and your busi­ness will thank you.

LinkedIn icon Share

Sign up for a free account.

Get your team up and run­ning in less than 3 minutes.

No credit card required Available on iOS, Android, and Web