The Magic Box That Turns $1 Into $10

RSS Thu, 04/09/2015 - 17:20 - Peter Moloney

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Would you be interested in a machine or “magic box” that turns every $1 you put in it into $10? Sound crazy? Well, at Loyalty Builders we have one of those. It’s for retailers, CPG and B2B companies that have lots of products and lots of customers, and who target those customers with promotional campaigns.

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How good are you at keeping customers?

RSS Wed, 01/19/2011 - 10:00 - Mark Klein

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When we talk to clients and prospects about the challenges they face when marketing to their current customers, the issue that never fails to surface is retention.  Yet when we press for more details, we are confronted by a paucity of analysis, a struggle to even size the problem, and more often than not, a semi-helpless shrug when we ask how they are attacking the problem.

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How big is your one-time buyer problem?

RSS Mon, 11/22/2010 - Mark Klein

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What’s your gross margin on a typical first purchase? Is it less than your acquisition cost for a new customer?  If your answer is yes (and that’s most companies), you have a one-time buyer problem.
 

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The one-time buyer. Customer? Prospect:? Or 'one-trick pony'?

RSS Tue, 09/21/2010 - Mark Klein

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Acquisition is a problem for most companies.  It’s often a bigger problem than they realize because they count an acquisition win as a customer even though only a single purchase has been made.  The truth is, one-time-buyers don’t really become customers until they’ve made a second purchase.

Customer databases get divided into active and inactive sets.  Most companies think of those names in their active file as “customers”, where “active” usually means the last purchase was within the past 12 to 24 months. But half or more of the names in most catalogers’ and online merchants’ active file have only made one purchase.
 

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Recognizing the elephant in the room

RSS Sun, 09/12/2010 - Mark Klein

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Many marketers are ignoring the biggest problem with their existing customer marketing, their large number of one-time buyers. For most catalogers and on line merchants, that number is often 50% or more. Are they the biggest segment in your database? When you count, just look at your active file, typically those customers who have made a purchase in the past 12 or 18 months.  If you go out further, the percentage of one-time buyers is usually even bigger.

Large numbers of one time buyers are a problem because they represent an untapped and mostly wasted resource. Again and again, they fall into a marketing Bermuda triangle:

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Customer Segmentation -- Strategic or Tactical?

RSS Sun, 08/22/2010 - Mark Klein

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We were asked this question the other day by one of the early readers of a new white paper we’re doing. The white paper is a comprehensive examination of how to segment a customer population.  It will be published soon so keep a lookout.

The question made us stop and think. Customer segmentation is hot right now, drawing more search traffic than keywords like predictive analytics, CRM, loyalty marketing, and marketing analytics. But ultimately, we decided, it is a tactic, not a strategy.

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Our secret sauce

RSS Tue, 06/08/2010 - Mark Klein

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We’re often asked why our predictions are so uncanny, how we are able to achieve such success for our customers. Here we reveal our secret sauce. Everything we do follows from four principles:

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Six things I've learned during this recession

RSS Fri, 11/13/2009 - Arthur Einstein

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Over the years I’ve discovered business is more fun when times are flush. But I’ve also learned a lot in times when customers are pinching pennies. What I’ve learned in past year may seem obvious at first - but if everyone was following these lessons, nobody would need us.

1. Take good care of the customers you have. They don’t want to switch vendors if they don’t have to - it’s time consuming and disruptive. We work hard at customer happiness and in this miserable business climate the loyalty of our customers seems better than ever.

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Customer Segmentation and Customer Migration

RSS Wed, 08/19/2009 - Mark Klein

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There were a lot of “I told you so’s” going around our offices last week.

One of our customers has really been leveraging their segmentations, with different messaging and different mail frequency to the various groups in their customer base. From this activity our customer generated some reports with concrete proof that their two middle tier segments, the Underperformers and the Faders, were the segments most susceptible to influence by their direct marketing campaigns. This result reinforced our hard-learned experience that these middle tier customers are the best candidates to move to higher ranking segments, and these mid-tier segments are the best places to find incremental revenue.

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When the going gets tough

RSS Fri, 12/12/2008 - Mark Klein

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We all know these are tough economic times. That message was reinforced for me again yesterday when I got a call out of the blue from a marketing analyst at a company not on my radar screen. She was charged by her VP with setting marketing priorities for next year. Specifically, she was asked to make marketing recommendations to help her company survive during this recession. The analyst was casting a broad net and found me.

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