Why New Customers are Costing You Too Much Money
I was sitting down with a bloke named Dave a few months back. Dave runs a landscaping business out in Chermside. He’s a hard worker, does a cracking job, and his trucks are always spotless. But Dave had a problem that’s probably familiar to you: he was exhausted from the 'hamster wheel'.
Every Monday morning, Dave would wake up stressed because he didn't have enough work booked for the following week. He was spending thousands of dollars every month on Facebook ads and Google just to get the phone to ring. He’d get a lead, drive out to give a quote, win the job, do the work, and then... nothing. He’d never hear from that customer again.
I looked at Dave and said, "Mate, you’re burning money. You’re paying top dollar to find strangers when you’ve already got a list of three hundred people who already know, like, and trust you."
That’s what this guide is about. It’s not about 'loyalty marketing' or 'retention strategies'—it’s about making sure that when someone spends money with you once, they keep spending money with you for the next ten years.
In Brisbane, word of mouth is king. Whether you're a sparky in Coorparoo or a cafe owner in Paddington, your most profitable customer is the one you already have. They don't need a sales pitch, they don't need to see your five-star reviews again, and they certainly don't cost you $50 in ad spend just to get them on the phone.
The Real Cost of 'One and Done' Customers
Most small business owners I talk to are obsessed with 'new leads'. They think the answer to every problem is more new people. But here is the cold, hard truth: winning a new customer is five to ten times more expensive than keeping an old one.
Think about it. To get a new customer, you have to: 1. Pay for an ad. 2. Compete with ten other blokes on Google. 3. Spend time on the phone explaining who you are. 4. Drive out to do a quote (and hope they aren't just price shopping). 5. Prove yourself from scratch.
With a repeat customer, you skip all those steps. They call you, they ask when you're free, and they pay the bill. That is how you build a profitable business that doesn't rely on Mark Zuckerberg or Google to keep the lights on.
What is a Loyalty Program (Really)?
Forget those plastic cards with the holes punched in them at the sandwich shop. That’s not what we’re talking about here. A real loyalty program for a local business is simply a system that ensures your customers remember you exist and feel rewarded for coming back.
If you're a plumber, it might be a 'Home Health Check' you do every 12 months for half price. If you're a hair salon, it might be a free treatment every fourth visit. The 'what' matters less than the 'why'. You want to stay 'top of mind' so that when their tap leaks or their hair grows out, they don't even think about looking on Google—they just call you.
Step 1: Start Building Your 'Gold Mine' (The Database)
I’ve walked into businesses in Fortitude Valley that have been running for twenty years, and when I ask for their customer list, they show me a pile of paper invoices or a messy inbox.
If you don't have a list of your customers' names, mobile numbers, and email addresses, you don't have a business—you have a job. Your list is your gold mine.
How to collect details without being a pest
Nobody wants to sign up for a 'newsletter'. It sounds like homework. Instead, give them a reason that benefits them: The Tradie Approach: "Hey, I'll put you on our priority list so if you ever have an emergency on a weekend, you're at the front of the queue." The Retail Approach: "Give us your mobile and we’ll text you a $10 voucher for your next visit." The Professional Service Approach: "We send out a reminder every year so you don't forget your tax/service/check-up and get hit with a fine or a breakdown."Once you have this list, you can win more local jobs simply by sending a text or an email when things are quiet.
Step 2: The 'Thank You' That Makes Money
Most Brisbane business owners finish a job, take the money, and vanish. If you want to stand out, you need to do the one thing your competitors are too lazy to do: say thank you.
Two days after a job is done, send a simple text:
"Hi [Name], it's Dave from the landscaping crew. Just wanted to make sure you're happy with how the backyard is looking. If you need anything else, just yell out!"That’s it. No sales pitch. Just being a decent human. This small act is how you turn happy customers into people who will tell their neighbours about you over the back fence. It keeps you in their phone's message history, making it easy for them to find you next time.
Step 3: Creating an Offer They Can't Ignore
A loyalty program needs to actually be worth something. If the reward is a 2% discount, don't bother. People aren't stupid. They want something that feels like a win.
For Service Businesses (Tradies, Cleaners, Pest Control)
Your goal is 'Recurring Revenue'. You want money you can count on. The 'Gold Member' Service: For $99 a year, they get one free safety inspection and 10% off any repairs. The Referral Reward: "Every time you refer a neighbour in [Your Suburb], I'll give you $50 off your next bill."For Shops and Cafes
You need 'Frequency'. You want them coming in three times a week instead of once. The 'Local's Secret': A special menu item or a 'locals only' hour where they get a free upgrade.- The Loaded Card: Buy a $100 credit for $85. You get the cash upfront, and they are guaranteed to come back until that credit is gone.
Step 4: Don't Overcomplicate the Tech
You don't need a fancy app. In fact, most local customers won't download an app just for your business. It’s a waste of their phone's storage and your money.
Keep it simple: 1. Text Messages: Use a simple service to send bulk texts. Everyone opens texts. 2. Email: Good for longer updates or monthly specials. 3. The 'Old School' Card: If you have a physical shop, a high-quality thick business card with a space for stamps still works wonders.
The 'Morningside Plumber' Scenario
I worked with a plumber in Morningside who was sick of paying for 'Emergency Plumber' keywords on Google. It was costing him nearly $80 a click!
We shifted his focus. Every time he did a job, he’d leave a high-quality magnet on the fridge with a QR code. That code didn't go to his homepage; it went to a 'Loyalty Page' where they could join his 'VIP Maintenance Club'.
Within six months, he had 400 locals on that list. When he had a quiet Tuesday, he’d send a text: "Got a gap in the schedule today for Morningside locals. Free tap washer replacement with any hot water service booked today."
He’d fill his day within twenty minutes. No ad spend. No competing with the big franchises. Just talking to people who already knew he did a good job.
Why Most Loyalty Programs Fail
Most programs fail because the business owner gets excited for two weeks and then forgets about it. Consistency is the only way this works.
If you promise a monthly special, you have to send it. If you say they get a reward after five visits, you have to track it. If you make it hard for the customer to claim their reward, they will feel cheated, and you’ll lose them forever.
Another big mistake is being too 'salesy'. If every message you send is "BUY NOW! SALE!", they will block you. Mix it up. Share a tip on how to maintain their garden in the Brisbane heat, or let them know about a local charity event you're supporting. Be a part of the community, not just a bill in their inbox.
How to Measure Success (The Only Numbers That Matter)
I promised no jargon, so here is how you check if this is working: 1. Repeat Customer Rate: Are more people calling you back for a second or third time? 2. Referral Count: Are you getting more calls that start with "My mate [Name] told me to call you"? 3. Bank Balance vs. Ad Spend: Is your profit going up while your Google/Facebook bill stays the same or goes down?
If these three things are happening, your loyalty program is working. You are building a 'moat' around your business that your competitors can't touch.
What Should You Do First?
Don't try to build a massive system today. You've got a business to run. Do this instead: 1. Gather your data: Spend this Saturday morning going through your last 12 months of invoices. Put every name and mobile number into an Excel sheet. 2. Send a 'Reconnection' text: Send a simple message to those people. "Hey, it's [Your Name] from [Your Business]. Just checking in to see if you're still happy with the work we did. We’re doing a special for our past customers this month—let me know if you need a hand with anything." 3. Watch the phone: See how many people reply. I bet it’s more than you think.
Building a base of loyal local customers is the difference between a business that stresses you out and a business that gives you a great life. You don't need to own the whole of Brisbane; you just need to own your local suburb and keep those people coming back.
Need Help Setting This Up?
Look, I know you're busy. You're on the tools, you're in the shop, or you're managing a team. Setting up the systems to track customers and send automated messages takes time you might not have.
At Local Marketing Group, we specialise in helping Brisbane businesses stop wasting money on ads and start making more from the customers they already have. We don't do 'fluff'—we do results.
If you want a system that brings in repeat business and referrals on autopilot, let’s have a chat. We’ll show you exactly how to turn your customer list into a consistent stream of income.
Ready to grow? Contact us at Local Marketing Group and let’s get to work.