Comments on: Age Old Couple – Direct Marketing and 2% Response Rates http://blog.chearie.com/index.php/2007/06/age-old-couple-direct-marketing-and-2-response-rates/ Arun Chearie's Musings on Enterprise Customer Management Mon, 01 Feb 2010 06:59:06 +0000 hourly 1 http://wordpress.org/?v=3.0 By: Al http://blog.chearie.com/index.php/2007/06/age-old-couple-direct-marketing-and-2-response-rates/comment-page-1/#comment-34 Al Tue, 31 Jul 2007 00:51:25 +0000 http://blog.transcentis.com/index.php/2007/06/05/age-old-couple-direct-marketing-and-2-response-rates/#comment-34 In the US , most of the super markets , give you a membership card , which is free. Personally , I think this segment has got its act right. About 95% of the super market customers have cards, since this card helps them to save an average of 40% each time they shop ( which in most cases is 2 times a week ) When the customer checks out, they first swipe the card and then scan their purchases, this knocks off the applicable discounts . The customer is happy because they just have to pay $ 1.44 per pound of Cherries ,rather that $ 2.49 without the card . Now if you were to figure out what the shopkeeper gets out of this deals, it is a lot . When they scan my card, they know exactly who I am , how many times a week , I shop at the store , how much I buy , what vegetables , brand of shaving cream and everything else, it also tells them the ZIP code that I live in , don’t you think this is valuable data that any manufacturer will kill for ? I think .. if a company chooses to understand their customers, they can do that at any level . Ever heard of any Ikea customer complaining ? In the US , most of the super markets , give you a membership card , which is free. Personally , I think this segment has got its act right. About 95% of the super market customers have cards, since this card helps them to save an average of 40% each time they shop ( which in most cases is 2 times a week )
When the customer checks out, they first swipe the card and then scan their purchases, this knocks off the applicable discounts . The customer is happy because they just have to pay $ 1.44 per pound of Cherries ,rather that $ 2.49 without the card .
Now if you were to figure out what the shopkeeper gets out of this deals, it is a lot . When they scan my card, they know exactly who I am , how many times a week , I shop at the store , how much I buy , what vegetables , brand of shaving cream and everything else, it also tells them the ZIP code that I live in , don’t you think this is valuable data that any manufacturer will kill for ? I think .. if a company chooses to understand their customers, they can do that at any level . Ever heard of any Ikea customer complaining ?

]]> By: Arun Chearie http://blog.chearie.com/index.php/2007/06/age-old-couple-direct-marketing-and-2-response-rates/comment-page-1/#comment-32 Arun Chearie Mon, 11 Jun 2007 11:36:52 +0000 http://blog.transcentis.com/index.php/2007/06/05/age-old-couple-direct-marketing-and-2-response-rates/#comment-32 Hi Alwyn, Good to have another regular reader! I agree with your points, mostly. Just a point I would like to mention, the area that this blog focuses on is predominantely under B2C environment. Banks, Telecom and Retailers marketing to their customers directly. In other words, Situation where marketers are often handicapped to know their customrs well as the base is usually substantially large. Knowing this, such retail organizations know understanding their customer well at individual level is a herculean (rather impossible) task. And, are trying to figure ways out by which they understand their hundreds of thousands of customers, like the way you do know your handful of business customers. To make such things happen, Statistical Analytics is a very powerful tool and these marketers are making best use of it. Your point on Job's marketing approach towards winning marketshare that was traditionally held by a Japanese giant is simply superb. I shall think over it, read a bit more and author a note on the same - Please do read and comment. Now, I am off to plan my evening to visit a cathedral and a castle. Importantly, learn a bit of Italian :-) Hi Alwyn,

Good to have another regular reader!

I agree with your points, mostly. Just a point I would like to mention, the area that this blog focuses on is predominantely under B2C environment. Banks, Telecom and Retailers marketing to their customers directly. In other words, Situation where marketers are often handicapped to know their customrs well as the base is usually substantially large.

Knowing this, such retail organizations know understanding their customer well at individual level is a herculean (rather impossible) task. And, are trying to figure ways out by which they understand their hundreds of thousands of customers, like the way you do know your handful of business customers. To make such things happen, Statistical Analytics is a very powerful tool and these marketers are making best use of it.

Your point on Job’s marketing approach towards winning marketshare that was traditionally held by a Japanese giant is simply superb. I shall think over it, read a bit more and author a note on the same – Please do read and comment.

Now, I am off to plan my evening to visit a cathedral and a castle. Importantly, learn a bit of Italian :-)

]]> By: Al http://blog.chearie.com/index.php/2007/06/age-old-couple-direct-marketing-and-2-response-rates/comment-page-1/#comment-33 Al Mon, 11 Jun 2007 00:42:04 +0000 http://blog.transcentis.com/index.php/2007/06/05/age-old-couple-direct-marketing-and-2-response-rates/#comment-33 Well, if company's were to follow Maslows hierarchy of needs and pay more attention to that , they would do well ( atleast better than the 2 % ) If companies can innovate , the products will be able to PULL customers. Guess what was Apple's marketing effort on IPODS ? Ever thought why Sony would keep off from capitalizing on their runway success with the Walkman and Diskman and miss out the digital music player market altogether . You would think they would have taken the lead into that market , imagine the uphill task the company has in order to break into that market . Comes down to common sens to attract customers :) Well, if company’s were to follow Maslows hierarchy of needs and pay more attention to that , they would do well ( atleast better than the 2 % )
If companies can innovate , the products will be able to PULL customers. Guess what was Apple’s marketing effort on IPODS ?
Ever thought why Sony would keep off from capitalizing on their runway success with the Walkman and Diskman and miss out the digital music player market altogether . You would think they would have taken the lead into that market , imagine the uphill task the company has in order to break into that market .
Comes down to common sens to attract customers :)

]]>