Seems like companies put in a lot of effort to entice customers to sign up for their services and then do little to reward those who have been loyal for years.
For some of us older folks, remember when banks used to give out gifts such as clocks, iceboxes or even watches when you opened a savings account? Now they give gift cards, cash back and rebates when you open a checking account.
Wouldn’t it be nice if companies gave their loyal customers a bonus. Most companies try to increase the switching costs and make it a pain to leave. Think of cell phone companies a few years ago. Instead of making people pay a cancellation fee for early termination, how about offering a discount for users who have been loyal for a number of years and then increase the discount as number of loyal years.
After going to the regularly salon for let says for five years, think about how it would be nice to get a surprise gift card on your birthday from your hairdresser for a free cut and color. As a customer you would feel special and probably tip your hairdresser generously. The salon would may lose a few bucks but would save dollars advertising by the referrals and great social media posts you would generate. And not to mention it is much easier to keep an existing customer happy than acquire a new one.
Up until last summer I had been with my same car insurance company since I first got my driver’s license as a teenager which was a while ago. I would sometimes look around but my insurance company beat other quotes since I had a significant discount included in my price. Just in case you are wondering I had to finally junk my car after almost owning my car three decades! When I do buy another car, you bet I will at least reach out and get a quote.