Consumer Relationship Building


The lighting company’s experiment would not have worked with business-to-consumer selling because consumer spending is

  • Not continuous

  • Far less predictable

  • Much lower in volume and margins

However, consumer communications can also produce marvelous results. A chain of restaurants based in San Diego, advised by Judd Goldfeder at The Customer Connection, gave patrons a paper membership card, which was scanned when they arrived at one of the restaurants and used to award them points toward free meals. The program seemed to be working well. After the chain had issued 25,000 cards, it decided to replace the paper cards with plastic ones. When the new cards were ready, they were mailed out with a letter thanking the patron for his or her business. There was no offer or discount connected with the plastic card—just a simple replacement. The results were dramatic. In the week before the cards were sent out, these customers visited the chain 1050 times. During the subsequent 13 weeks, this same group of patrons visited the chain an average of 1400 times per week. Sales to these customers increased by $12,000 per week, or $156,000 in total over the 13 weeks. The increased sales per dollar spent were $8.32.




The Customer Loyalty Solution. What Works (and What Doesn't in Customer Loyalty Programs)
The Customer Loyalty Solution : What Works (and What Doesnt) in Customer Loyalty Programs
ISBN: 0071363661
EAN: 2147483647
Year: 2002
Pages: 226

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