How a New Customer Discount Is Killing Your Business

I renewed my car insurance recently.

Not the most exciting topic, I know. But I always think there’s something important to learn from car insurance companies.

They always offer an important lesson in how NOT to do business.

You see, every year when the renewal date comes around, they send me a letter thanking me for my custom and offering to insure me again for the year to come.

To really show their appreciation, they increase my premium.

I’ve never had a company that doesn’t do it.

The increase is never nominal – sometimes as much as 30-40%!

Now, while it would be so much easier to just let that renewal roll over, I’m not to keen on paying extra for absolutely no reason at all. It’s pretty much like a customer loyalty tax.

So every year, I run a quick search on a comparison site and within 10 minutes I’ve got a better deal and often better cover too.

Sometimes I give my existing insurers a call and lo and behold, they can offer me a discount if I’m willing to stay!

I get why they do it.

A certain proportion of people will just let the renewal run year after year without ever checking out the competition. But it’s a terrible way to take care of your customers.

During the lockdown earlier this year, we doubled down on taking care of our customers. Because customer loyalty is important to us – and we can’t expect you to be loyal to us if we’re not loyal to you.

What would you feel if in your deepest, darkest hour of need we abandoned you? Left you to fend for yourselves, navigating the choppy waters that 2020 had to bring.

That’s not the Lead Generation group way.

Instead, we got all hands on deck. We kept things going for our clients – putting new strategies in place, keeping their customers engaged through social media and preparing them for the post-covid future.

We lost some clients, of course.

Some went into complete hibernation and others sadly had to close their doors forever.

But we didn’t take our free capacity and drop down to a 4 day week. No. We used that capacity to serve our existing customers instead – putting in extra time free of charge to help keep things ticking over for them.

Because loyalty goes two ways.

If we treated our customers the way my car insurance company treats me, then we wouldn’t have the strong, relationship-based business that we do today.

So if you’re looking for a marketing company who will get to know your business, build a real relationship with you and stick by your side through the storms that the post-covid economy is sure to bring then give us a call on 01827 437971.