FAQ

FAQ

A high level of customer satisfaction and customer loyalty are the basis for every successful company.

Relationship management enables you to focus on loyal customers.

Key words of succesful relation management are sincere attention and appreciation to  your customers, and for your loyal employees.

Valued customers feel cherished. Good relationship Management is a true art!

Satisfied customers stay longer aboard  than disgruntled customers; this has a positive effect on revenue and profit.

This is due to several factors.

  • First of all, it is more expensive to get new customers than to retain existing customers.
  • In addition, giving service to existing customers is easier and cheaper the longer they stay customers.
  • Many existing customers tend to buy more products or services
  • And finally, you can generate extra profits and revenues when your satisfied customers are ambassadors of your company.

Giving targeted promotional gifts is an important tool in a successful relationship management.

Xelboo helps to make a difference versus  the competition with tailor made promotional gifts.

Relationship Management: How to do it?

Focus is increasing on on relationship management is not a one-time or short-term trend.

For years, working on costumer satisfaction and on customer loyalty has been the subject of articles in the trade press and lectures at seminars and conferences.

Below is a selection of the many out-spokes that have been made in recent years about relationship management.

Marketing guru Philip Kotler:

‘ ‘ Who builds up a relationship with his customers, meets several advantages. It costs less to service existing customers, than to win new ones. One creates such goodwill, that loyal customers tend to buy more, they become less price sensitive and advertise the products they have bought. ‘ ‘

David Butter, vice President, Mr. Catoman Johnson: ‘ ‘ The retention of valuable customers has now been identified as the most important marketing technique for the years to come. This discipline is about to be spread across Europe. ‘ ‘

Chief executive at Albert Heijn: ‘ ‘ companies are struggling to pick up new customers, among others by means of discounts.

So you reward the customer who are leaving you. That’s crazy. If you ask me, the marketing question of the future will be how to reward your loyal customers. Loyalty must be rewarded. You have to make visible who your most loyal customer is.

Frederick Reich Hero, marketing guru:

‘ ‘ working on customer loyalty should be the first part of a business plan. It soon turns out that its paying off. A credit card company noted that a 5% increase in customer loyalty over a five-year period increased profit by 60%. ‘ ‘

The main objective of each company is to make sustainable profit. To achieve this goal, it is important to have a strategy of managing and retaining current customers.

For Xelboo this is ‘ relationship management ‘. Some companies also use concepts such as ‘ relationship retention ‘, ‘ Customer marketing ‘ or ‘ valuebased Partnershipping ‘

Our Xelboo definition of relationship management:
Relationship management is the strategy of building, continuing, deepening and consolidating long-term, sustainable, profitable relationships of selected customers, with the goal of realising the business objectives.

This immediately indicates that making a sustainable profit is the majour goal.

It is also clear that companies do not want to have a close relationship with everyone, but only for the customers we have selected to to establish a long term relationship.

This definition indicates that in relation management companies are focussing on existing customers, rather than finding new relationships.

Giving appropriate promotional gifts is part of good relationship management.

At Xelboo, we like to think about designing a distinctive promotional gift to show appreciation to loyal customers.
Loyal customers help to increase profits and ensure the continuity of the business.

Why is relationship management important?

Good relationship management contributes to a sustainable operating result, continuity and loyal customers and employees.

Again and again, an effectively conducted relationship management proves that all three variables are affected.

It is therefore not surprising that more and more companies consider relationship management as an integral part of their corporate policy. In this way, a process arises with the employee as a critical success factor in whether or not it succeeds in that plan.

Loyal employees provide loyal customers

Nowadays, in this time of consumerism, loyalty seems to be sacrificed to the fast cash flow and easy solutions.

However, several studies make it clear that loyalty between an organization and its customers, between the employer and the employee provides a crucial competitive advantage. Because loyal employees create loyal customers. And only loyal customers come back to you

Is a promotional gift deductible?Giving gifts is an excellent way to express your appreciation to clients and employees. Promotional gifts are not always expensive. However, there are specific rules for promotional gifts regarding corporate tax and VAT. Curious about the exact rules? We are happy to explain!
What is a gift?
A business gift is a gift that you give to an existing relationship. Relationships are customers, vendors or other business contacts. Staff is not included in this. It is important that it is an existing relationship. Gifts to promote your company fall under acquisition and its normal operating costs.
Mixed cost
Promotional gifts are concidered as mixed costs. Mixed costs have both business and a personal element. It is difficult to split per gift, that’s why there are rules to this separation.
What part is deductible?
73.5% of the expenses for promotional gifts is deductible. If you have a lot of mixed costs, then you can also choose to have a fixed amount to correct as lump sum for €4,500, or 0.4% of the total salary costs, if that is more than €4,500. It is convenient to the promotional gifts therefore on a separate g/l account. This gives clarity.
What about the payroll tax?
Promotional gifts, like Christmas packages, is arranged by specific labour legislation. The value of the Christmas package is charged with payroll taxes. But there is a waiver. If the total amount of gifts to the employee during the year are less than 1.2% of the wage bill, then you stay within the so-called free space. In that case, you have no extra pay to pay taxes.

What about VAT?
If the total cost per person does not exceed €227 (excluding VAT), you can deduct the sales tax. I f you exceed this amount, the following rule applies: If the recipient the gift itself would have bought, he would then have the right to deduction? If the answer to that question is ‘ no ‘, then you may not deduct the sales tax. The answer is ‘ yes ‘, then this though.
Are you looking for corporate gifts, but like to stay below the amount of €227,-so that you can deduct the cost? Or would you like more information? Please feel free to contact with us.

Dutch law allows for the giving or receiving of promotional gifts. There are limitations for tax deduction and corporate tax, but everyone is free to receive a promotional gift.

There are sometimes ambiguities in companies and employees about being allowed to accept relation gifts.

Several companies want to prevent their employees from getting into a situation that they can get the feeling of being bribed.
That is why they set up corporate rules of conduct, which describe the rules governing the acceptance of gifts and invitations.
Gifts up to a value of up to Euro 50 in most cases do not cause problems. If the value is higher, recipients should report this if they have received a promotional gift.
These rules are often also intended to prevent the giver of the relationship from being unduly embarrassed. It is quite annoying that a well-intentioned gift must be taken.

In Several foreign cultures it is even an insult if a offered promotional gift is denied.

In most cases, Xelboo’s gifts meet the requirements of the rules of conduct. Our gifts are unique, affiliated to a company and have no tradable value in the trade. The added value of our corporate gifts is mainly in improving and strengthening the relationship between the giver and the recipient.

In order to establish customer loyalty, there must be a win-win situation for the company and the customer. If one of the parties sees insufficient benefit in a close relationship, sustainable customer loyalty will be difficult to achieve.

The basis for customer loyalty is of course that you are or have a strong ‘brand’, are a reliable supplier with a good image, provide good quality products and services, apply a market-based price and have extremely good customer service, whereby the customer always has the advantage of the doubt.
These are also called hygiene factors. If they are absent, you will never win the battle for the customer.

Increase customer loyalty with a sustainable relationship
Retention and loyalty programs are programs aimed at building a sustainable relationship with customers. Well-designed programs are an integral part of the product and the complete service around it. Retention and loyalty programs can contribute to a greater or lesser extent to increasing retention (repeat purchases), loyalty (emotional bonding) and customer retention (customer retention).

Companies can increase customer satisfaction by responding in time to the wishes and needs of customers.

Satisfied customers remain loyal to the company (customer retention), take more products and services (retention) and eventually become ambassadors of the company (increase customer loyalty).

Customer satisfaction alone is not a guarantee for customer loyalty
Customer loyalty research in different branches shows that only a very large degree of satisfaction or dissatisfaction is decisive for customer loyalty. In other words, only exceptionally satisfied customers remain loyal to you and only very unsatisfied customers walk away.

Customer loyalty increases profitability
Buy more satisfied customers more? Yes. Various studies have shown that the frequency of repeat purchases for highly satisfied customers is much higher than for ‘satisfied’ customers. Furthermore, research shows that an average of 20 percent of customers generate 80 percent of the turnover. The majority of the turnover (sometimes more than 90 percent) also appears to come from existing customers. If you know this, there is only one question left, namely ‘what about the satisfaction of your customers?

Customer loyalty requires long-term customer support
Customer loyalty has to do with the emotional bond or affection for the people, products or services of a company.
Loyalty is not for sale with price reductions but requires long-term customer support.

Loyalty is created through brand experience, dialogue, interaction, sense of value, trust and satisfaction.

Loyalty does not arise from today to tomorrow, but is built up over a longer period. A good and strong loyalty program is part of the strategy of successful companies.

Loyalty can express itself in two ways that both increase sales. On the one hand it can lead to repeat purchases (retention) and on the other hand to references and word-of-mouth advertising.

Promotional gifts as a thank you when doing business
As part of a loyalty program, giving a business gift is a very strong and valuable tool.
You create extra attention if you give a promotional gift after concluding a contract or after purchasing a product or service
In the automotive industry it is customary to give a gift when the new owner comes to collect his car. An original and special gift increases the loyalty of your customer. He feels special and appreciated.

Standard opportunities for business gifts
There are several standard opportunities for which business gifts have been exchanged for years. Christmas and New Year are the most well known opportunities. This is the most common period for sending business gifts. Other common occasions are birthdays, anniversaries or major events within a company.

Less common occasions for business gifts
In recent years, other events or dates are also used as opportunities to exchange promotional gifts. Companies want to ensure that the partners are constantly reminded of them. Carnival, Easter, King’s Day, the World Cup or European Football Championships are just a few examples of this kind of days.

Which opportunity is best?
A business gift is given for a specific purpose. In fact every company should give business gifts as a marketing tool. Maybe the best timing is to choose a special or original occasion, on which you are the only one who gives a gift to your partner. You then become more interesting among all others. An original moment creates a favorable psychological effect of your business gift.

Promotional gifts as a thank you when doing business
As part of a loyalty program, giving a business gift is a very strong and valuable tool.
The perfect timing for giving a business gift is at signing a contract or after the purchase of a product or a service provided.
In the automotive industry it is customary to give a gift when the new owner comes to collect his car. An original and special gift increases the loyalty of your customer. He feels special and appreciated.

For Xelboo applies: every moment is the right time to give a special promotional gift!

Why do we give business gifts?
We do not give business gifts without reason. We give them with a purpose. Promotional gifts are an important marketing tool and that can be seen from their effect.

By giving a promotional gift you create the x-factor and you strengthen your brand awareness and brand recognition.
In this way the recipient is always reminded of you, and this generates a positive association.

Promotional gifts with results
Except for occasions and for marketing purposes, (relationship) gifts are often presented to our own staff. For example, it is a tradition that someone who celebrates a working anniversary receives a gift. Companies often reward their employees in response to achieved performance.

Promotional gifts as a thank you
A business gift can also serve as a thank you. For example, you want to thank an organization for the business granted. By giving a present you put yourself in the spotlight. The customer or relation appreciates your gratitude and this creates a positive mindset.

Xelboo helps to make a difference versus the competition with tailor made promotional gifts.

Increasing customer loyalty – 6 practical tips

Improving customer loyalty is done at every stage in the customer journey and works best when the customer relationship is valuable for both parties.

increase in your company:

  1. Connect customers in various ways: Send your clients valuable insights and tips. That makes the step to contacting a lot easier. Give tips to regular customers, prospects with their order. Receiving something valuable responds to the principle of reciprocity, so you are inclined to give something back.
  1. Give customers attention: customers want to be heard and seen . By thanking customers for their trust and giving extra attention, you show that you appreciate the relationship. That ensures emotional bonding again.
  1. Use branding for emotional bonding: the branding through marketing and promotion creates an image and feeling. By appealing to certain core values, the consumer feels a deeper connection with your brand faster.
  1. Measure the emotion at each moment of contact: emotional bonding is built up in every moment of contact. So measure the emotion and see how you can improve it in every contact for more customer retention.
  1. Focus on customer satisfaction and customer loyalty: satisfied customers are not necessarily loyal customers. Only very satisfied customers will not switch so quickly. According to various surveys, 20 percent of satisfied customers get on without notice. Focus therefore also on customer loyalty.
  1. Reward loyal customers: in branches such as telecom and at internet and TV providers, it pays to be a new customer. Because as a new customer you get all kinds of discounts that you no longer receive as a loyal customer. Do not consider loyal customers as a cash cow. Ensure an equal relationship and reward loyal customers with rational elements such as discount, exclusivity or a reward. Surprising your customers suddenly works very well for customer loyalty.

How do you ensure that your customers do not run away when another provider advertises a price stunt with the same product?

A unique customer experience and optimal customer service are obvious reasons.

But what if the competitor does this as well as yourself? The only way to make your customer a permanent customer is to make them loyal to your brand. As markets are becoming increasingly saturated and competition is increasing, it becomes increasingly difficult to differentiate yourself. This has created loyalty programs that aim to bind people to a brand.

How does customer loyalty work?

Every business or brand is given a lot of attention and money to attract new customers. But a loyalty program is just in order to make the current customers more in touch through brand experience.

Loyal customers will become regular customers in the long run, and they will provide you with more long-term returns; an investment that remains valuable for every entrepreneur.

Customer loyalty is the marketing strategy aimed at building a preferred position and customer loyalty. Customer loyalty makes a prospect a lead, from a lead a customer and from a customer a satisfied and loyal customer. Customer loyalty works at every stage in the customer journey and therefore leads to more leads, customers, turnover and loyalty.

The customer journey consists of the different phases that a person or company goes through. Customer loyalty therefore starts with the creation of leads and only ends when the customers are satisfied and loyal.

Customer loyalty is always required

Not only because every company needs leads, customers and loyalty, but also because every  company loses customers.

Why do customers leave?

Research indicates the 3 main reasons why customers leave:

  1. your customer is tempted by a competitor
  2. your customer is dissatisfied with the product or service
  3. your customer experiences a poor or indifferent customer attitude with the provider.

Improving customer loyalty is done at every stage in the customer journey and works best when the customer relationship is valuable for both parties.