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Cultivating Customer Loyalty

You’ve managed to capture new business, and dazzled customers with your outstanding service. What can you do to make this win pay off again and again? Loyalty marketing plans may be the most valuable tool for cultivating repeat business.
Vernon Steiner recently started offering Glass Doctor customer protection plans at his Glass Doctor shop in Holmes County, Ohio, and he finds they help deepen client relationships and offer opportunities for more business—which creates customer loyalty.

When Steiner or one of his technicians goes to a home site for a window repair, the customer sees two prices listed in the book—the regular price, and a discounted member price. Invariably they ask how to get the member price, giving Steiner an opportunity to explain the customer protection plan and gauge the customer’s interest. “If you sell a plan for a year or two, you’re stopping that person from looking in the phone book for another glass shop, because they get a discount with you,” he says.

The Glass Doctor customer protection plans are popular with residential customers, for whom typical jobs range in price from a $150 insulated window unit to a $500 patio unit. “We knock 15 percent off, and if anything happens to the window within a year or two years, I’ll replace it for free.” Steiner says, “Eight times out of 10, they buy the plan.” Steiner also sells protection plans to home builders. “We’ll sell them a plan that gives them 15 percent off all their mirrors, shower doors, glass block, and so on. After they’re done with the house, they transfer the plan to the homeowner and that adds value to the house.”

Steiner says that these new homeowner plans offer another opportunity to get additional business: the six-month checkup. He calls the homeowner and offers a free 200-point inspection. If he finds stone chips or other window problems, the customer is eligible for a 15 percent discount on the new repair.

The plans are less popular with automotive customers, because the benefits are not as great. “We try offering the plan with every auto glass job that we do, but if we’re doing a $200 windshield, it’s not as good of a deal. We knock $60 off, but then they have to pay $40 for the plan.” Also, since car windshields are at greater risk of damage than home windows, the plans offer a discount rather than outright free replacement.

Steiner’s employees are fans of the plans, too, since they get a bonus for each one they sell. Overall, it’s a win-win proposition.