Holiday Gifts from Your ISP

Christmas may be popular in Whoville, but when it comes to giving your customers gifts you may want to act a bit more like the Grinch. Your ISP should not be small hearted, there simply may be a better time to say thank you.

by Brock Henderson
Director of Marketing IgLou Internet Service
[November 29, 2000]

I don't believe in it. You read that right—I don't believe in giving customers a Christmas gift. Never, not ever … Period. No, I am not a Christmas curmudgeon—I do not reside in a cave on Mt. Crumpit sipping lettuce juice with my dog Max.

However, I do believe in giving your customers a gift as a token of your appreciation for their business—just not at Christmastime.

Timing is everything
There are two reasons why I think Christmas is not the appropriate time of the year to give your customers a gift. First, not all your customers celebrate Christmas and second, your gift won't stand out in the crowd—your marketing efforts will be lost in the holiday shuffle.

Consider giving your ISP customers a gift at any other time of the year other than Christmas, and your gift stands alone while you avoid insulting any of your ISPs non-Christian customers. You, your service, and your gift will be remembered and appreciated when it is given at a special time of the year.

For example, try saying thanks to your customers on Thanksgiving Day, or celebrate their birthday, or better yet—join them in commemorating their anniversary.

Thanks for your business
Thanksgiving may not be unique, but how often do you get a Thanksgiving Day Present? Giving your ISP customers a Thank You Gift will make a positive impression in their minds.

Is there a drawback to giving your customers a Thanksgiving Day Present? The large, single day outlay of cash could make such a program cost prohibitive.

For example, if you have 2,000 customers and you give each one a $10 gift, then the cost of your Thanksgiving Day Present promotion is $20,000. So the cost of a small cash gift could add up quickly if you have a large customer base.

They say it's your birthday
If you ask your customer for their birth date when they initially sign-up with your Internet service (to verify that they are a legal adult), you can easily establish a reminder in calendar program to send the customer a card or gift every year on their birthday.

Your ISP's customers will be flattered that you remembered and took the time to do something for them. A natural benefit to such a marketing scheme is that the cost of the program is spread out over the year.

Is there a downside? Some individuals are highly sensitive about their age and may find your birthday salutation a little insulting. You might need to gage each situation on an individual basis and decide whether or not to send your customer's something on their birthday.

Anniversary waltz
My favorite gift-based promotion is one that celebrates a customer's anniversary date with your business. Try giving your ISP customers a small gift or card on the anniversary date of their first year of doing business with you. By celebrating your customer's start-up date with your ISP business, the gift commemorates a special event uniquely shared by the two of you. It also demonstrates that you appreciate each customer's business, and as an added benefit, the cost of the program is spread out over the year.

Who gets what?
Now, who gets a gift—all of your customers? And do you give everyone the same thing? No, on both counts—because this commemorative marketing program could get way out of hand, fast. I recommend that you establish three or four levels of gift giving so your ISP clients perceive a different value with each year of service.

There are various ways of determining how much to spend on anniversary gifts for your customers. For your ISP's premium clients I suggest that you spend a percentage of the sales that they made with you throughout the year. Here are some guidelines on customer gift-giving:

• Level 1: A card pointing out that this is the anniversary of their first doing business with you. Sign it personally—do not stamp your signature or have it imprinted on the card. These people give you money for your ISPs goods and services. The least you can do is take 15-seconds to sign a card for every customer and thank them for their business. Cost: Budget just a couple of dollars per customer for some custom printed anniversary cards.
• Level 2: The vast majority of your customer base, 75 to 80 percent, might enjoy receiving a $5 or $10 gift certificate or cash gift on their second anniversary of doing business with your ISP. There are also referral programs you could utilize for coupons and other value-added free gifts for your customers. Cost: This will be the bulk of your anniversary gift recipients, budget $5 to $10 per individual client.
• Level 3: These customers are very important to your ISP business and they deserve extra consideration. Depending on how many individuals or companies comprise the top 15 percent of your sales, you might want to select a unique gift for each individual. Cost: Budget $25 to $40 per individual gift.
• Level 4: The absolute cream of your ISP customer base, the one to five percent of your customers that would send you into utter despair and a drunken stupor if they ever left your ISP business. These customers may not be your largest accounts—they might include prestige companies that you want to maintain because of their quality image in the community, or a non-profit group. Cost: Each gift should be selected for each individual customer to reflect the interests of the intended recipient. Budget at least $50 per customer, but $100 or more may be appropriate depending on how important the client is to your ISP business. After all, these customers are sending thousands of dollars to you each year so you can afford something special for them on their anniversary of doing business with you.
  

Make the moment last
Remember, if you get in the pattern of giving anniversary gifts to your customers, they expect it every year. Gift-giving becomes an annual event that cannot readily be terminated without offering an explanation to your customers. Just as a small gift lets your customers know that you appreciate their business, the lack of a gift could give your customers the impression that you don't care about serving them any more.

Giving your customers gifts won't supplant bad service or shoddy products from your ISP business. But anniversary gifts will help a good Internet service like yours increase sales and build a lasting relationship between you, your ISP business, and your clients.

— End

     

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