“All animals are equal, but some animals are more equal than others.” This is the line I remember from the book, Animal Farm.
Substitute customers for animals and you’ll be good. Customers who purchase more frequently and spend more money have a greater value. All customers are not alike.
Maximize Customer Value
The goal of every business should be to maximize the value of the average customer. One of the best ways to do this is to reward your most valuable customers (or those who you believe will become your most valuable customers) with benefits not provided to other customers.
The benefits could include:
- lower prices
- lower shipping fees
- free products
- product credit
Often, these types of benefits are provided only to customers who participate in the company’s Autoship program.
Customers and Representatives
When it comes to benefits, think of your representatives as customers who happen to sell and recruit. Be sure to offer to customers who are representatives the same or better benefits offered to customers who aren’t representatives.
If you use the term “preferred customer”, create a definition for preferred customer and use it in your marketing materials. All preferred customers should know who they are.