Scenario: You sell (a) pizzas, (b) office supplies, or (c) rent video cassettes. Your product is similar to your competition, your price is similar, and there's a limit to how much service you can offer to get more business. How do you (1) keep your customers loyal to you while at the same time (2) increase your sales per customer.
The Blockbuster video store near my office pulls people into their store through the chain's overall advertising campaign. But once you're inside, they offer a special incentive -- if you rent 3 or more videos, you get a free box of popcorn. Now why would anyone rent three videos at a time, when you only have two days to watch them? Most people will rent two videos at a time -- your first choice and another one in case your #1 choice is a dud. The free popcorn offer makes that third video less expensive and worth the extra few bucks ... you'd buy popcorn if you went to the movies, and here they're giving it away free ... sort of. I watched the counter one day and was amazed at how many people rented enough videos to qualify for their "free" popcorn. Cost to Blockbuster? A box full of popcorn costs about a nickel, plus the cost of the box (another nickel). Worth the expense (they also sell the popcorn for .99 a box).
But suppose you're selling pizzas or office supplies? I'm grouping these two together because all office supplies are the same whether you buy from store A or store B. And pizzas, for the most part, are the same (okay, those of you who think I'm wrong just bear with me ... most pizza places in my neck of the woods taste about the same). Both are generally delivered to your office or home. As long as the delivery and the service are the same, how do you get repeat sales?
Solution: a twist on the popcorn idea. Buy a case of jelly beans, licorice, lollipops, or any item that won't go stale. Divide the case into small bags (for example, 10 jelly beans per bag) and have your delivery people tape the goody bag to your delivery box (the non-perishable quality is important for office supplies which are usually loaded on the truck in the morning and delivered throughout the day). Your customers will appreciate the extra thought and will remember the little "extra" they got with their last order. Your prices may even be a bit higher than the competition, but you'll be remembered as the vendor of choice because you offered a little something extra with your product. Again, your cost is about a dime. Your benefits are loyal customers who will remember you and recommend you to their friends and business associates. Well worth the dime!
Important: Once you start this freebie program, you must stick with it or your customers will remember you as the company that "used" to give away jelly beans but, all of a sudden, became stingy. Quick way to lose those loyal customers. Note: You can always vary the snack ... your customers will appreciate your originality and start looking forward to your surprises.