Never Lose a Customer to a Competitor Again! Christina Rosa
Never Lose a Customer to a Competitor Again!
Service business owners (SBOs) look to larger competitors to learn new strategies to add to their playbook. Often, SBOs will overlook simple tactics that competitors use because they feel as though those strategies will not work in their business model.
For this post, we examined both Amazon’s Subscribe & Save feature, as well as service bundles from other businesses; to reveal a standard tactic and how to apply it.
Amazon’s Subscribe & Save feature locks in 100% of a consumers’ spending on a specific item. Why it works – It comes down to three key reasons:
1. Savings to customers who commit to multiple purchases in advance.
2. Engaging customers with the brand
3. Better product management and delivery
Customers are more engaged with a brand that can offer exclusive deals on products and services. Customers that are rewarded for their loyalty will grow an attachment to the brand while benefiting from bundle savings.
For the SBOs providing this subscription-based service model, the additional revenues are a direct result of locking-in users for a specified period (one month, three months, six months, or one year), or based on the number of services sold in the bundle at POS. This creates a “bulk purchase and sav[ings]” attitude in the mind of the customer which leads to a higher rate of total services purchased per future interaction, building customer loyalty and retention.
The Kicker – Bundles
If you have ever used these bundled features on Amazon or even bought a year’s supply of toilet paper at your local Costco or Sam’s, you may have become acutely aware of the savings that were passed on to you. One positive by-product of this strategy is the secondary benefit generated, i.e.: relationship building between brand and customer. Simply stated, this approach creates an automatic action from the consumer as to where that repurchase will take place. This, in turn, creates an engagement opportunity to be exploited by the SBOs.
SBOs who use this strategy can retain a customer longer by offering bundles. Additionally, with each bundle, multiple services can be sold at POS, thus increasing the lifetime value of their clients. This tactic is used to attract and retain customers through incentives which in turn lock-in future revenues. Instead of offering bulk products like Amazon or Costco, SBOs offer bulk services through bundles. By allowing customers the opportunity to purchase a bundle of services, SBOs can reap the benefits of locking in those sales.
The Benefits for Your Business
Businesses that use this model can sell bulk services – for a salon, it may be hair color and touch-ups, whereas for a spa it may be a specific number of massage sessions. The benefit to the business is an increase in sales per customer. This continuous interaction with a customer is a powerful tool to promote brand engagement.
Locking in customers sets a powerful platform to launch growth; you can use this same principle to engage your clients and grow your revenue stream. You can begin implementing this tactic by offering a bundle package to your clients which can improve engagement with your brand and lock-in clients for future services.
Let TapToBook grow your business by reaching customers where it matters.