In the previous article we presented our basic ideas about our newly prepared loyalty – promotional program. We promised to explain each point in turn. Here we go.
Loyalty programme
Our program consists of a loyalty and a promotional part. Today we’re going to look at the loyalty part. The loyalty part is in our program because we want to reward our loyal customers. Our satisfied customers are our best advertisement. They are a walking advertisement that is free. We invest relatively little in advertising, in terms of growth ( and our incremental growth) it could be argued that we invest almost nothing. And yet we are growing the fastest in the market, almost as fast as all the other companies combined. This is due to the fact that our customers are satisfied and trust us. We want to deepen this relationship of trust and satisfaction.
We would like to reward ourselves for this “cooperation” and want to offer our customers some reward for their loyalty. Our program is one way, one possibility.
New versus existing customer
Virtually every day, an existing customer writes to us asking for a discount on service extensions. Most of the time, these applicants argue that we have constant discounts for new customers, but we “don’t give a damn” about existing customers. However, we repeatedly and patiently explain that we value our existing customers, but that it is economically impossible for us to give discounts on our already low prices.
We have discounts for new customers because we have to convince them to try our services. We are aware of the high quality of our services, but we have to convince all potential customers of this. It is the same as with you at the beginning when you were wondering whether you should trust WEDOS.
For us, for our growth and development, it is crucial that we have a large number of clients. It must be hundreds of thousands. In this case, we will achieve interesting revenues and from these it will be possible to generate interesting profits.
For services, we want to follow the path of maintaining high quality or even increasing the quality and at the same time improving the services (with new products and add-ons). You know that we are preparing various new products and continuously adding various improvements to all existing services for all (not only new) customers. We didn’t want to go the discount route. Now everyone can choose.
What we offer
We will offer our customers who will be our shareholders:
- that we will always try to have domains for them at purchase prices, including renewals,
- discount of up to 20% on service extensions (web hosting, VPS, dedicated servers, WEDOS Disk and possibly other services of a similar nature), subject to the limitations below.
Possible questions
Will there be any restrictions? There will be one restriction that will serve as a protection against abuse of the loyalty-share program. The total amount of the discount granted per calendar year will be limited to 20% of the total purchase price of the shares of the relevant shareholder.
Does it make sense to be a shareholder? Yes, he does. Already with this first step, each of our customers – shareholders will receive an appreciation of their investment of 20% per year. Of course, he is also entitled to a possible dividend, and at the same time the value of his investment (shares) will change along with the growth in the value of our company, which can be much more attractive than it seems at first glance.
Why the restrictions? We need to prevent abuses where discounts are “traded on the black market” or situations where someone buys 10 dedicated servers for a monthly fee of, for example, CZK 50,000. In addition, he will buy one share for 100 crowns and demand a discount of 10,000 a month.
Why isn’t the discount higher? Indeed, given our low prices, significant discounts are economically unviable and we have to behave economically. We don’t promise mountains. We don’t want to jeopardize our investment or the investment of any potential shareholders. We must behave responsibly.
Why a calendar year? We have a calendar year accounting period.
Can I have more shares? Yes, of course. You can even buy each share in a different period (different subscription round).
Purchase price and why are you tracking it? We anticipate that there will be interest in our program and we will do the subscription repeatedly. The purchase price of a share may change over time. From this point of view, it is important to keep track of who bought the share and at what value.
When do we launch it? This loyalty programme will be applied to service renewals from January 2013.
Why can’t we offer more
There’s no point in explaining it at length. Bigger and better benefits may be economically prohibitive for us, and nobody wants that. Neither our customers, nor our shareholders, nor our customers who will also be our shareholders.
What else are we dealing with
Before the actual launch, we are still working out the details related to the limitations described above. There can be several different shareholders in one customer account, because there can be a shareholder as a company or as an individual at the same time or even several different companies.
Continued next time
Thank you for your attention. Next time, we will explain the other essential points of our programme. Step by step you will learn everything.