It’s rush hour on a weekday and a potential customer, let’s call her Sarah, is driving along a busy and traffic-jammed road. She’s had a long day at the office, but she can’t go straight home just yet – she’s noticed her gas tank is low. It’s time to fuel up.
After crossing through a clogged intersection, Sarah sees two convenience stores with gas pumps: Store A the right side of the road, and Store B on the left. Buying gas at Store A would certainly take less time – one simple right turn off of the street and she’s in the lot pumping fuel. Making a right turn out of the lot once she’s finished should be smooth going, too. To get to Store B, however, she’d have to wait for the backed-up traffic in the opposite lane to either pass entirely, or wait for a kind soul to let her through the lane into Store B’s lot. Either of those waiting options requires more time and potential frustration, and leaving Store B would require yet another left turn. Which convenience store will she choose for her gas purchase?
Sarah turns left, deciding that visiting Store B is worth waiting in traffic. Why would she do this?[…]
Price-sensitive customers are far too often ignored by marketers. The common thread of thinking is that they are tough to sell to, but with the right strategy that is not the case! In fact, this customer segment has much more spending potential than you might expect.
Let’s say that your stingy customers have shown in the past that they are able to visit your locations three times per month, but generally they come in one time per month (these numbers align best with a quick-service restaurant concept – adjust them to fit your company’s business model). These stingy customers – the people who either visit infrequently and/or spend very little with each visit – have a lot of room for growth because they’ve shown that they are capable of spending more.
In order for these price-sensitive customers to reach their spending potential, they must be challenged in a relevant way. Your marketing tactics should ask them for something you know they are capable of achieving. If you ask a stingy customer to behave the same way as a loyal one, the daunting task could be a turn-off altogether. You’ll need to track customer behavior with either a loyalty or CRM program and then analyze the resulting data. When you’ve identified the true spending potential of your stingiest customers, here are the two best ways to compel them to spend more: […]
Every marketer has the goal of compelling their customers to live up to their potential. Whether that is through peer measurement tactics like running a tiered loyalty program, or individual competition tactics like a visit challenge, there are many ways to drive more visits and spend. One element that many marketers fail to consider, however, is geographic potential. What exactly does that mean? Let’s dive in.
Geographic potential is the highest frequency with which a customer can visit your restaurant or retail locations based on their proximity to them. Marketers might think they have the geographic information they need about their customers because they ask for an address when a customer registers for their loyalty program. While most customers will probably provide their home address, does that really paint the full picture of their geographic whereabouts? Of course not! If you want to capitalize on the geographic potential of your audience, you need to paint the full picture of where they are spending their time. Say a member of your loyalty program – let’s call him Joe – provides his home address when he signs up for your program. You have a location one mile away from Joe’s address, and you send him lunch offers on a regular basis, but he never redeems them. What gives? It turns out that Joe works 20 miles away from where he lives, so he is never in the area around lunch time. A better use of marketing resources would be to send him dinner offers. […]
After spending days agonizing over the message, design, and call to action, you finally feel ready to press the send button. Now you’ll wait two days constantly refreshing your browser watching as the stats roll in and your open rate slowly climbs. Whether you hit 10, 20, or even 50%, there is always the opportunity to get more eyeballs on your message.
Consider the 7 tips below to boost your open rate:
Did you have an important message that didn’t get as many opens as you wanted? Try sending the email again only to customers that did not open your email originally. You can even change the subject line to keep it fresh. One of Paytronix’s major email clients regularly practices “retargeting” which can bump up open rates an additional 10%.