TIS THE SEASON

Steven Cesare, Ph.D.

A heartfelt business owner from Illinois called me the other day to talk about his company’s year-end activities. While most landscapers focus on their own company events that typically include a four-five hour party for all the employees, replete with catered food, beverages, music, and myriad Christmas presents distributed to staff based on a raffle designed for fun, joviality, and laughter, the Illinois business owner instead wanted to address what he should do for his clients.

Clients. You remember them. The people who pay business owners a lot of money that helps pay the business owner’s mortgage and puts hot food on the owner’s employees’ kitchen tables every night?

Yeah, them.

Despite these undeniably dire economic times, the business owner had a mildly successful year, due in large part to hard work, sage decision making, and role modeling success behaviors exemplifying his company’s results-based team-oriented culture. As I told him: Congratulations for doing it the right way!

The business owner inquired about what he should do to show his sincere appreciation to his clients for their on-going contributions to his company. That said, I relayed common themes many grateful business owners have shared with me recently.

First, most business owners classify their clients into three tiers, call them A, B, and C, based on overall value (e.g., revenue, gross margin, longevity, consistent on-time payment, referrals, no drama) to the company. Tier C typically represents the bottom 50% of existing clients. In general, most business owners will send a hand-written Christmas card or brief note of appreciation summarizing the relationship between the customer and the company during the past year, rapt with gratitude, optimism, and spirit.

In most cases, Tier B represents those clients between the 50^th and 85^th percentile of value to the company. While all clients are valuable, Tier B clients are of high concern to ongoing company success and as such are vital to all annual client retention metrics. We do not want to lose these clients. Accordingly, it’s up to us to keep them. Distinct from Tier C clients, Tier B clients, who should receive face-to-face contact from the business owner throughout the year (after all, they are paying his/her mortgage), typically receive a sampling of sundry gifts like a mini-Christmas tree, seasonal chocolates and/or festive cookies, or a tailored gift bag containing various personal care items, office supplies like personalized stationary, desk calendar, or mouse pad, or functional items like a thermos, flashlight, or travel aids, or consumables like a bottle of high-end champagne, wine, or collection of cigars.

Tier A are the “whales,” the VIPs, the clients we must not lose for any reason. These top 15% of cherished clients naturally receive distinctive consideration throughout the year, but especially at Christmas. Here are some of the signs of appreciation that business owners have told me they do for their Tier A clients.

50% discount on all direct labor expenses for one day on all Tier A client jobs.
One full day of free crew maintenance and/or detail work at the client’s personal residence.
A $250 gift box from either Snake River Farms or Good Ranchers meat products.
An invitation to the company’s Christmas party (e.g., entertainment, Vegas night) at a restaurant.
Personalized leather items like a passport holder, wallet, or laptop sleeve containing the client’s initials.
An all expenses paid day at a resort spa, round of golf, sport fishing, etc.
Up front tickets to a seasonal theatrical play, musical concert, or sporting event.
Deluxe automobile detailing package for the client’s personal vehicle.
Personal message of gratitude from the owner engraved in a Crystal Desk Stand or Wall Plaque.
A noteworthy charitable donation in the client’s name to a cause s/he identifies with deeply.

All clients are important; everyone wants to be appreciated. Grateful business owners understand those tandem business acumen precepts and humbly show their true feelings of thanks to their customers.

Other owners quibble about cost containment and then like their forefather Ebenezer, blame anyone and anything but themselves, when they lose that valued client who was helping them pay their mortgage.

TIS THE SEASON, FROM ME TO YOU AND YOUR FAMILIES: MERRY CHRISTMAS!

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