Let’s go back to the 80 – 20 rule. The economist Pareto discovered in the early 1900’s that 80% of the wealth in Italy was held by 20% of the population. I had written about this previously, but it is a good time to talk about it again. I am frequently asked questions about gift giving to clients. From What should I give them for Christmas? to How do I determine who my top clients are? Here are some tips to help you:
- Run a report by client and identify the top 20% spenders. Now, you have the answer of who to focus on. The top 20% will probably represent 80% of your business.
- The second question I am often asked is: How much should I spend on each client? That could vary depending on your budget. Your gifting should be a line item in your budget. If your overall marketing budget is 10% of your gross revenue, then perhaps gift giving could represent 2% of that amount. Convert that 2% into a dollar amount. Now you know how much you can afford to spend on gifts to your top clients.
- The third question I am asked is: What should we get them? There are several things you can do. The most popular item should be products from your spa, preferably branded items; such as robes, wraps etc. Or it could be something like a complimentary treatment or a gift card. It could be a book or something that has to do with health and wellness. This really should be planned far in advance and ordered during the end of August. But most important: It’s the thought that counts! Don’t get hung up on price.
- You could also recognize them as a VIP client in your newsletter or during your holiday party by giving them a different color name tag. They could receive a bigger and better goody bag. Get your brand to help you in recognizing your top clients who especially purchase products on regular basis.
- If you have no budget at all, you can send a Christmas/Holiday card with a complimentary upgrade for their next visit.
The fourth question I am asked is: What should we do for all the other clients? Sending holiday wishes via a card or an electronic card is appropriate.
Here is what we did at InSPAration Management this year. We gave our top 20% a gift. Then, we sent out a gift in our newsletter for all other clients to join us for a webinar in January. The webinar is for the Don’t Sell, Recommend! Our number one educational program, a value of $99, they can attend totally free. If you did not see it, and you are either a client or a newsletter subscriber of InSPAration Moments, make sure you sign up!
Hope you are having a busy month, and remember, the important fact is to recognize your clients and your team members!