News
 8
Tips for Customer-Focused Marketing Promotions
By Jim Novo, an interactive customer retention,
defection, and loyalty expert with nearly 20 years
experience generating exceptional returns on
customer marketing program investments.
These are patterns of behavior seen repeatedly in
customer marketing, and can be used to increase
profits.
1. Always advertise where the behavior you want to
create is. If you want clicks, advertise where
people are clicking. If you want buyers, advertise
where people buy.
2. The media and method used to acquire a customer
has a very large effect on the potential value of
the customer. Customers from search engines will
have different buying patterns and potential values
than customers from banner ads. Measure these
differences.
3. 50 percent to 60 percent of your customer base
will be one-time buyers or visitors. Accept it.
You'll waste a ton of money trying to change it, and
it's not going to change. One-time buyers who bought
multiple items on the first purchase are a possible
exception. Try them first. Then try one-time buyers
with the highest order value. If these don't bite,
none of the one-time buyers will.
4. The only chance you have at getting a first-time
buyer to purchase again is to contact them quickly
after the first purchase.
5. One-time buyers who return their only purchase
CAN be better marketing targets than those who don't
return their purchase - IF the customer service
experience they have in dealing with the return is
outstanding.
6. Customers on average will buy down in price over
their LifeCycle; unless you take specific action to
influence this behavior, the average order price
falls over time. For this reason, buyers who "go
cheap" on the first purchase usually have lousy
future value.
7. One $50 1st purchase customer is worth more than
two $25 1st purchase customers. See #6 above for the
reason.
8. Resend a promotion to the same people. You can
often get 50% of the first response rate if the
original promotion was a targeted one. It's OK to
send exactly the same promotion, can be better to
send slightly different copy, like "2nd chance!"
Jim Novo is the author Drilling Down - Turning
Customer Data into Profits with a Spreadsheet.
Contact Jim at
contact@jimnovo.com or go to The Drilling Down
Website: (www.jimnovo.com)
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Melissa Data
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