Developing VIP Clubs that Increase Business
One of the most obvious ways to generate more profits is to build up a VIP club. A VIP club is a group of people who will provide special perks on top of what other regular customers receive in exchange for being loyal. For example, you might offer them free tee-shirt printing or an exclusive bar that only the VIPs are allowed in. There are many reasons why this marketing strategy is useful, one being that it can boost your sales by leaps and bounds if done correctly. It is a simple idea that can work in a multitude of industries, but requires the right person to make it a success.
In this article, I will discuss the steps required to build a successful VIP club and its benefits.
Building Your Club
The first step is deciding what you want to offer your customers. A good way to determine this is by making a customer demographic list or 'sales funnel.' This is how people typically move through your business and determine if they are interested in buying your product or not. Take note of the last point they go through before they actually make their purchase decision. This point is often called an 'entry point. This is the point where you should be offering stress-free purchases. For example, if a customer enters your business and sees that you only offer shirts for men, they will not continue. However, if they see that you have a women's section as well as men's, they may make the purchase there. This is important because it shows them that your business isn't just an apparel store but more of an 'okay' place to shop.Along with this…
Your Perks
The next step after establishing your corporate customer base is to choose which perks you will offer. There are many different ways to get customers in touch with each other and increase your VIP club memberships. For example, it could be all about the perks rather than the membership itself. For example, you sell a free tee-shirt for VIPs only. All you need to do is have this printed up and hang it up in a prominent place. After a while, customers will notice that t-shirts are distributed to VIPs as well as non-VIPs. They will look around for the next time your t-shirt is for sale and see if they are still allowed into your club. If so, they will purchase their own shirt using their membership purchase as payment.
In more extreme cases, you can offer framed prints of your work or other exclusive merchandise just to VIPs only. To sell these items, you would have to have customers sign up for a VIP card and enter a special club URL. This is more expensive, but it can be extremely beneficial if you manage to get the right people in your VIP club.
To begin with…
Assembling the Goods
While this can be time consuming and even hard for some businesses, it is a good idea to make merchandise specifically for VIPs. This isn't just designating sections of your store or website as VIP-only areas (for example, a VIP section on your website that has larger images or more detailed product information). This means that each person who joins will get their own merchandise. For example, you could make a VIP card, put their name and an image on it, and then give them discount coupons or other coupons that are redeemable only in your VIP club store. This is not only an incentive for all new members to join your club (who can then decide if they like it or not), but it also helps boost sales by letting loyal customers know that they will receive merchandise the first time they buy.
As I mentioned before, a very important element is getting customers into your VIP club. The easiest way to do this is by making yourself seem more appealing to them. There are a few ways you can do this:
Offer Freebies
This one should be obvious. You want to give away free stuff to get people into your club. A great place to start is by giving out things that are commonly given out in other clubs. For example, if you are a tattoo shop, offer totally free tattoos. This is a great way because everyone likes getting more tattoos (who doesn't want another). It is also a risk-free way of attracting people into your club because they may not have been able to afford it initially and will now be able to get access for free!
Show off
You can also try selling merchandise that only members can purchase in exchange for membership. For example, you might advertise a limited edition shirt that is only available to members. VIPs will be eager to purchase this item in order to feel special. This can be very effective in certain businesses (such as restaurants) but may be ineffective in others (such as tattoo shops).
Offer Special Deals
The last way is offering special deals to people who are members. For example, if you are a restaurant, you could offer a three course meal for $25 rather than the normal price of $30. VIPs will feel special and may even go back more frequently because of your lower prices! Depending on your cost-effectiveness factor and how profitable the deal is, it is definitely worth considering this option.
As far as the price of the membership is concerned, this will depend upon how much money you are willing to invest or how valuable it is to your VIPs. Be careful though, if you do not charge enough, then it will be a waste of money and they may never return again. Sometimes, a low-cost membership like this can actually work out financially due to high volume. If you do offer this kind of deal, consider raising the price after a while because it can become less profitable over time due to low attendance (which results in low profits).
As for your perks…
As I mentioned above, many people will join your club for 'free.' This isn't always true though. After you sign up a new customer, you should offer them a special deal. For example, if you are selling a tee-shirt that costs $20, instead of giving it to the customer for free you could give them 100% off it for the first week. The first week is cheap and convenient for new VIPs so it's an easy way to get their money!
The goal of any perk should be to make the current customers feel like they got something extra in return for their purchase. You don't want your perks to diminish their loyalty towards your store and brand; you should strive instead to boost them.
Conclusion
Overall, offering VIP programs to your customers is a great way of boosting both sales and customer satisfaction. While there are many different options you can use, certain tactics work better with specific businesses. In every case however, it is important to keep the customers happy and leave them with a positive experience that will increase their loyalty.
As an extra note; remember that this can be dangerous if your business goes under. If you offer perks, especially those that cannot be purchased by non-members, then those members may feel cheated or put off by your business in the future. It is best to be upfront with VIPs and let them know what they are paying for as well as what they get from it in return.