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Frequency Marketing Will Boost Sales
How often do you keep in touch with your past customers to
announce a new product or service? Have you developed a
relationship with your customers since their initial purchase?
Do you consistently reward customers for their repeat business?
Frequency marketing is simply identifying high value customers
and building a solid relationship with them. It is also a very
effective way of branding your product or service. It is a
proven fact the developing relationships with your customers
will increase sales and reduce expenses.
Reduce expenses?
Yes, acquiring new customers always costs more money than
selling to your existing customers. Most companies do not
realize the power of their in-house mailing lists.
Frequency marketing has been around long before the Internet. A
prime example of frequency marketing are the many
"frequent-flyer" programs. Many airlines offer free air miles
if you travel on their planes. This is their method of building
brand loyalty.
Should you implement frequency marketing in your marketing
efforts?
Frequency marketing is a long-term strategy that requires
commitment. Unlike promotions that may last only weeks,
frequency marketing programs could last for several years. If
you cannot make this type of commitment, then it will be tough
to develop a successful frequency marketing strategy.
The rewards that you offer should be of value. Here are a few
more examples of frequency marketing:
Credit Card Contests - Some credit card companies are offering
you a chance to win prizes. Everytime you use your credit card,
you are entered into the contest.
Stamp or Points - Companies will give you stamps or points that
can be redeemed for brand merchandise. (e.g. Pepsi Points)
Contest and Games; Companies provide games or contests which
require the player to make repeat purchases. (e.g. McDonalds
Monopoly)
You do not necessarily have to offer a tangible reward. Studies
indicate that rewards such as special treatment or recognition
provide a stronger bonding impact.
Be genuine about your rewards. How many times have you
received
a "preferred
member" plastic card with a toll-free number on the
back? Where is the value?
Don't promise the world. If you cannot deliver on your promise,
you could seriously damage you reputation and credibility.
When conversing with your customers, you should do it genuinely
and not generically. Sending a letter that starts off with
"Dear Valued Reader," will not be as effective as "Dear Jim,".
Remember you are trying to develop a relationship. Frequency
marketing communication is one-to-one, not one-to-a million.
The most important aspect of a successful frequency marketing
program is to add "real" value to your customers. You have to
look at your product or service and decide whether it warrants a
repeat purchase. If you do not offer a high quality product or
service, your frequency marketing strategy will fail miserably.
Frequency marketing is not for all businesses. They usually
apply to business that have a high need for repeat business.
You should also be in a business where it is hard to
distinguish between you and your competitors to effectively use
a frequency marketing strategy. If you have a monopoly in your
business, it does not make sense to implement a frequency
marketing strategy. Everyone has to purchase from you no matter
what.
The downside to frequency marketing is that once all your
competitors realize how successful it is, they will jump on the
same bandwagon. Pretty soon, the whole strategy becomes
meaningless if everyone else is doing it. That is why a
frequency marketing strategy needs to be well thought out and
constantly reapplied or revamped.
Frequency marketing is still in its infancy on the Internet.
There are many programs evolving at this moment. There will
be a lot of companies implementing this long-term strategy into
their marketing efforts. Will yours be the next?
About the Author
Gauher Chaudhry is editor of Cool Cash Ezine. You can subscribe
for free by sending an email to subscribe@freecoolcash.com
with "sub-art" in the subject. You will receive a free copy of the
225+ page book "How To Start And Operate Your Own Profitable
Business At Home!" (reg. $20)
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