The Art of Year-End Client Appreciation: Building Stronger Relationships

January 5, 2024

Amid the bustling preparations for seasonal celebrations and the end-of-year hiatus (or upsurge in activity in some sectors), the importance of appreciating your steadfast customers can sometimes be overlooked.
Client appreciation should be a core strategy for small business owners, and December is an ideal time to show your gratitude and foster customer loyalty.

Why client appreciation matters

A successful business needs customers who keep coming back. Building a strong, lasting connection with a loyal client is a cost-effective form of advertising, as it’s likely to produce positive reviews and word-of-mouth referrals. A Nielsen survey found that 92% of consumers worldwide trusted information such as word-of-mouth recommendations above all other forms of advertising.

Repeat business and referrals help you to grow your market and research has also shown that retaining a customer may cost far less (and increases profits far more) than acquiring a new one. The cost of serving loyal customers generally decreases over time, and they tend to buy more as the relationship grows.

Pass on savings and incentives

A 2022 report revealed that 79% of consumers are more likely to do business with a brand if it has a loyalty program, and that the most appealing type of loyalty program is one that offers cash back – in other words, a loyalty discount.

If you don’t already have one, December could be an appropriate month to start your loyalty discount program. The discount or cashback could take the form of points earned on purchases, redeemable for a credit against future orders. Not only will the customer be happy to receive a credit, but may also return to spend again so that they can take advantage of it.

Also consider sending your existing customers an email with special offers, such as a discount on their next purchase or free shipping. They’ll appreciate the chance to make savings at a time of year when budgets are often stretched.

Give a gift

Gifts are often the best way to make your clients feel special and appreciated as the year draws to a close. A recent global survey of business gift recipients found that 83% of respondents felt closer to companies that sent them a gift.

There are lots of options for business gifting, and it doesn’t have to be expensive. Small, thoughtful items can make a big impact. You may be able to support another local business offering handcrafted products or a gifting service in your area.

You could also give customers the option for a donation to be made in their name to a charity or cause they care about. For your most valued customers, make your gift even more personal by attaching a handwritten note.

Take a break and prepare for a prosperous 2024

While you are concentrating on appreciating and retaining your customers to lay the foundations for a successful year in 2024, don’t forget to show yourself some appreciation for all your hard work in 2023. Finding time to take a break with family and friends will recharge your batteries and give you the opportunity to come up with new ideas to drive your business forward in the next 12 months.

And if those ideas need finance, don’t forget that your broker will be on hand throughout the festive season for advice or support as needed.

---

This information is for general information purposes only. The information contained herein does not constitute financial or professional advice or a recommendation. It has not been prepared with reference to your financial circumstances or business and should not be relied on as such. You should seek your own independent financial, legal and taxation advice as to whether or not this information is appropriate for you.