Eat. Get your car washed. Improve customer loyalty.

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I live in a small town. Like most small towns, this one has a coffee shop. It’s an old-fashioned one. Kind of like walking into a Norman Rockwell painting. Anyway, let’s call it “Mike’s Coffee Shop.” There are no lattes. No cappuccinos. No espressos. Just plain old coffee, breakfast and lunch.

Like most coffee shops in a small town, Mike has his “regulars.” You know, the people who frequently eat there. As a result, the waitresses (its old school…there are no waiters) know the regulars names, their kids names and their grandkids names. Where they live, went to school, where they do their food shopping and a ton of other, oftentimes intimate information. And, when they see these customers sit down in their booth, they’ll ask if they’ll be having their “usual.”

Some of Mike’s regular customers are also small business owners. So, Mike is a great resource for all types of services. Whatever you need, there’s a good chance Mike will be able to make a referral. Everything from lawyers and contractors, to realtors, insurance brokers and car wash owners.

Which brings me to what Mike did over a recent holiday season.

As a reward for his regulars, Mike partnered with the owner of a local car wash and handed out coupons worth a value of $10. It was a perfect gift and a practical one too. One based on need. To get rid of all the road grime from the winter. And it was unexpected.

What was in it for Mike?

Knowing Mike, he really wasn’t concerned about what was in it for him. He just did it out of appreciation for his regulars. But, I can tell you he got a ton of good will. With his customers and the owner of the car wash.

Just for laughs, let’s look at some numbers.

Assume the regulars eat breakfast at Mike’s Coffee Shop only on the weekends. From experience, I know that usually means two people with a very conservative bill of $15, excluding tip. From experience, I also know that the regulars go to Mike’s at least 40 weekends each year, which, by my extraordinary computational skills, equals an annual expenditure of $1,200 for each couple.

Now, there are all kinds of ways to calculate ROI and I’m not going to get into it. But, anyway you look at it, for roughly a $10 investment―and after deducting for expenses, labor, overhead and everything else that goes into an ROI formula―for a very small investment, Mike has helped to further protect his business with his gesture of appreciation and strengthened his relationship with his regulars.

Sure, more than likely Mike’s regulars will still continue to frequent his coffee shop because of the value, the service and the ambiance. With or without a car wash coupon. But, the point is, he made an investment in his customers to show his appreciation for their investing in his business.

The owner of the car wash cleaned up too. (Sorry, couldn’t resist.)

Mike also provided increased awareness for the owner of the car wash (who, by the way, also made a minimal investment). The $10 car wash was a good deal in and of itself (especially as it was a hand wash, not machine). Once you got there, you had an option to get additional services for a few extra bucks. No hard sell. In fact, no sell at all. The prices for the extras are on a sign as you waited in line. You could up-sell yourself. Or not. I opted for more extras, as others I assume did too. And this particular winter was a long, dirty one. So more than likely, the people with the coupons will be returning for other car washes.

It was a win-win-win.

Mike gives his regulars an unexpected and practical reward in appreciation for their patronage. In return, he strengthens that relationship and enjoys positive word-of-mouth advertising. Plus, Mike further reinforces his relationship with the owner of the car wash and also improves awareness for that owner’s business as well.

Pretty simple right? Treat customers like you’d like to be treated. Surprise them once in a while.

Let’s see how Mike did regarding Customer Retention and Customer Loyalty.

1. Was his “giveaway” practical and based on need? Filthy car. Chance to get it washed for free? Appreciative customers. I’d say yes.

2. Did the customer have to do something to get the reward? Eat. Then drive their car to the car wash.

3. Does his service/product provide value? $7.50 per person for two eggs, bacon, juice, toast and bottomless coffee? Coupled with good, friendly service in a welcoming environment. That’s a big “yes” for me.

4. Did his gesture foster goodwill ? You betcha. Not only with his customers. But, with the car wash owner as well.

5. Did his gesture have marketing “legs.” The best kind of legs…Word-of-Mouth Advertising.

6. Did the owner of the car wash get a good return on his investment? More awareness. Exposure to new customers. Opportunity for a “self-upsell” on the part of the customer. Repeat business. Check the “yes” box again.

7. Did Mike get a good return on his investment for protecting his business? You do the math.

Smart companies, like Mike’s, value and reward their customers. In return, those companies are rewarded with loyalty. And it doesn’t always have to be driven by disruptive technology. Or complicated programs.

It’s just about good customer service and appreciation. Here are some other great examples.

How about you? Have you received an unexpected reward for being a loyal customer lately? Better yet, have you given one? Tell us about it.

Flickr photo: Mike Garofalo

Bob Musial
Bob Musial is a business development coach, author of "Soft Skills. Hard Returns." and humorist who works with professionals to help improve their competency in getting, keeping and expanding business. He's easy to reach. Pretty easy to talk with too.

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