I use Netflix. I don't have a lot of time to rent videos at the store between work and my MBA program. The videos I get are my little two-hour escapes. Imagine my surprise when I received an email with the following notice:
They actually lowered my subscription price. I did nothing. Have to do nothing. That's it. Lower price.
That's a great way to compete. Blockbuster has one service advantage over Netflix right now in that you can return the videos you rent at the store or through the mail. But I don't have a Blockbuster near me, so I use Netflix.
How can you give back to your customers to show them that you appreciate their business?
Seth Godin wrote a while ago about Buy One Get One Free. Tom's Shoes donates a pair of shoes to a child in a developing country for every pair you buy. As Seth says, "I like several things about this approach. The simplicity of the offer, first of all."
Ideas, marketing campaigns - they don't need to be overly complicated. Make it easy for your customers to see what they are getting, without needing the small print, just like Netflix did. I don't have to do anything: the next time my bill comes, it will be lower. Done deal.