You Want Customer Loyalty? Offer Existing Customers Your Best Deals!

I love buying domains!I admit it: I’m a bit of a domain junkie! (You may wonder what this has to do with customer loyalty, but bear with me here.)

Whenever I think of a good domain name for a business I might conceivably be interested in running some day, I check to see if it’s available, and if it is, I buy it. I’ve been using GoDaddy for this almost since GoDaddy was founded. Used to be they had great prices and great customer service.

Yeah, sure their interface was terribly confusing, and then they started bombarding you with ads and offers before you can check out, but I stuck with them.

So last night, I went to their site to see if frankusability.com was available. Turns out it was. I saw this offer on the GoDaddy home page:

Looks like a good deal. Till you read that for the 2nd year they are going to charge $17.99!

Looks like a good deal. Till you read that for the 2nd year they are going to charge $17.99!

I wasn’t very happy when I added it to my cart and realized that the second year was going to be priced at $17.99, way above market rates. Yeah, it was there in the fine print, but really? Seems sneaky and underhanded to me.

So I went to Google to search for other domain registrars. And first thing I see is this offer from GoDaddy:

A better deal, but unlikely to be found by loyal customers

Now that’s more like it!

Yep, a new .com for just $0.99, with the second year costing only $9.99!

So I tried to register with the cheaper offer, but when I got to the cart it kept putting in the more expensive one. I finally had to spend time on hold with customer service, who found a workaround and got me the better price.

Quite apart from the annoyance at having to work through customer service, what upset me about this is that loyal customers are the ones who are likely to start a domain search by going straight to their home page rather than getting there through the Google ad. So what they are doing is penalizing their loyal customers. 

That is the opposite of what you should be doing. If you want to encourage long-term customer loyalty, give them better deals, not worse ones!

What do you think?

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One comment on “You Want Customer Loyalty? Offer Existing Customers Your Best Deals!

  1. Thanks for bringing up this topic, Tema! It is a big pet peeve of mine when I have been a loyal customer of a company, and they offer better deals to new clients.

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