Variety seekers are looking for new experiences and deal seekers only consider price. Although the behavior of these customers is extremely unlikely to change, many meeting industry companies have more than doubled the promotional budgets aimed at capturing them over the last five years. Save your money and send them to your competition.

While some people do want a relationship with an organization, the scam pointed out in the best selling business book, Loyalty Myths …is it’s only about 10 percent. Today’s customers have access to almost unlimited information and, with the exception of very high-end products and professional services, exhibit very low commitment.

Although many organizations must seek variety for their meeting locations, they may be able to use the same audiovisual, catering, meeting planner and incentive gift providers. Recognize the reality of the need for variety in some cases while holding clients accountable for their needless utilization of variety in other situations.

By carefully examining the “variety” question you may find that many of your existing clients may have a lifetime value far less than what you’re spending to maintain the relationship. Recognize the reality of their behavior, find out how, if at all, you can win more of their profitable business and, if you can’t create win-win, move on.

Investigate the assumption that it costs five times more to acquire a new client than to retain an existing one. What additional cost did the new “vendor” incur when you went to a new conference, tried a new restaurant, changed your CPA or flew on a new airline?

Challenge the myth that existing clients increase their level of buying more products and services from you at a rate greater than new ones. Are your “best” customers purchasing at full margin or discounted prices? Having a stable of “volume buyers” may make your prospecting and sales life easier, but be killing your profitability. In effect, clients paying full price are carrying the load for the discounts you’re giving to others.

Although wallet share is very important, many customers scam organizations because they demand an unreasonably high level of service or are totally price driven. They aren’t helping you by backing up the truck and filling it with discounted goods or demanding price or fee concessions at the expense of your generating a profit.

You don’t want to keep all of your customers, only on the profitable ones. Scamming customers may complement you saying they delay purchases and wait for you. If waiting means a “special offer,” no business ever lasted by giving its products or services away. Have the courage to explain this to your “best clients,” and I’m sure that your “best clients” will recognize that you’re worth it!

If the time involved and your costs of business per transaction remains the same, yet you’re revenue per transaction drops for those doing the greatest amount of business your strategy needs rethinking. If you believe in treating everyone the same, discount pricing for a select few is certainly discriminatory.

Marketing and advertising scammers will have you believing your promotion budget is devoted entirely to attracting new prospects and clients. However, much of it is meant to reinforce and maintain awareness among current customers and the awareness of your “brand” in the marketplace.

While many organizations think long term customers are less price-sensitive and will happily pay a premium to do business,

Loyalty Myths research shows many “believed to be great customers” scamming by consistently paying between 5 and 7 percent less than new customers. Are long-term customers really more desirable than short-term?

Rather than discounting prices and fees, investments in service and quality improvements should be made in order to demonstrate an increase in value to your clients and prospects. Don’t guess at what will increase the value of what you offer in your customers eyes, ask them. Research repeatedly confirms that they will tell you and that your relationship will grow stronger as you listen and implement their suggestions. Price is only an issue when you can’t genuinely demonstrate superior value.

Client, prospect and marketing/advertising scams are a fact in modern business life, easily perpetrated on the non-prepared. Information abounds and people normally seek variety and want a good price. Challenge the myth that it cost more to get a new customer and refuse to believe that the total expense and purpose of your marketing and advertising budget is to get new business.

Focus on the “real” wants and needs of clients and prospects in the marketplace and demand a profitable relationship between the investments made in your business and getting more “profitable” customers. Develop the right processes, people, and resources to create profitable repeat business and measure the results. Strive to attract and keep only the profitable clients and prospects…send the scammers to your competition.

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