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Customer Reward Strategies - 7 Ways We Reward Our Customers

Rewarding our loyal customers is not without its challenges. We are extremely vigilant with our cost control. So, to go above and beyond in an industry notorious for low margins is a huge deal for us.

But we understand the value of our returning loyal customers. Many of them have celebrated birthdays with our birthday cakes, referred us to friends, family, and colleagues, and trusted us with their special occasions like weddings, baby showers, and kids birthdays. A significant portion of our business comes from returning customers over the last decade, a statistic that I am incredibly proud of. Our returning customer rate increases each year, reaching an all-time high increase last year at 27%.

Returning Customer Rate Change

The cake and confectionery industry is highly competitive, and as a luxury cake maker, we cannot compete on price. Instead, we compete on our offering. Providing consistently high-quality products alongside efficient and empathetic customer service is what keeps our customers coming back year after year.

Repeat Customer

Word of mouth is our most effective form of marketing. As a small business, we don't invest in advertising, and my dislike for "influencer marketing" is well-documented. Therefore, we focus on our customers, as they are the ones who have helped us reach where we are.

Influencer Marketing Flowchart

Hence, we focus on our customers, as it is them who have helped us reach where we are.

Our 7 Customer Reward Strategies

1. Feedback

We proactively seek feedback after every cake order by personally sending an email asking for details on taste, texture, service, and delivery. As a reward for their time, we offer a discount voucher for a future order.

2. Free Delivery

We offer free delivery to our customers across most of Greater London, Berkshire, and Surrey, even though it comes at a direct cost to us. We believe our customers deserve this extra service for choosing us over our competitors.

3. Personal Delivery Service

While we can't offer an effective tracking app, our in-house driver personally sends a text message each morning with an ETA of their cake delivery. It's a small touch to give our customers a better service until we find the right app.

4. Referral Reward

Whenever a customer's friend or family recommends us, we send the recommending customer a discount voucher as a thank you.

5. Bespoke Cakes

We are more likely to accommodate bespoke cake requests from returning customers who appreciate our offering and standards. It's a joy, as an artist, to create something special for someone who values the extra effort.

Chocolate cake message

6. Complimentary Cake Messages

Every cake order includes a free chocolate plaque with a handwritten message, adding a personal touch that makes our cakes special to our customers.

7. Complimentary Cake Sparklers

We include complimentary sparklers with our cakes to complete the cake experience and bring a little extra joy to our customers.

Cake Sparkler

Rewarding our customers doesn't have to break the bank. Being thoughtful and occasionally going above and beyond without expectations has surprising benefits. It has helped us build wonderful relationships over time, and it's a joy to make cakes for customers we've come to know and love. That's the kind of business I want.

If you're a fellow business owner, I hope this helps with brainstorming on how to improve relations with your valued customers. To our loyal customers, thank you! We love seeing your name popping up in our orders. And to prospective customers, I hope you sense how personally vested we are in our cakes and customers, and I look forward to baking for you soon.

Lots of love,

Reshmi xoxo

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