Leveraging Frequency Marketing to Enhance Sales

The Power of Frequency Marketing

Frequency marketing is a strategy that focuses on identifying high-value customers and fostering strong relationships with them. It's an effective tool for branding your product or service. The power of frequency marketing lies in its ability to increase sales and decrease expenses.

Yes, you read that right. Decrease expenses.

Acquiring new customers is always more expensive than selling to existing ones. Many companies overlook the potential of their in-house mailing lists, which can be a goldmine for frequency marketing.

Frequency marketing isn't a new concept. It has been around long before the advent of the internet. A classic example of frequency marketing is the "frequent-flyer" programs offered by many airlines. These programs, which offer free air miles to customers who frequently travel with them, are designed to build brand loyalty.

Implementing Frequency Marketing: A Long-Term Commitment

Implementing frequency marketing in your marketing efforts requires a long-term commitment. Unlike short-term promotions, frequency marketing programs could span several years. If you're not ready for this level of commitment, it might be challenging to develop a successful frequency marketing strategy.

The rewards you offer in your frequency marketing program should be valuable. Here are a few examples:

• Credit Card Contests: Some credit card companies offer customers a chance to win prizes every time they use their cards.
• Stamp or Points Programs: Companies give customers stamps or points that can be redeemed for brand merchandise. Pepsi Points is a prime example of this.
• Contests and Games: Companies organize games or contests that require customers to make repeat purchases. McDonald's Monopoly is a case in point.

Rewards don't necessarily have to be tangible. Studies have shown that rewards such as special treatment or recognition can have a stronger bonding impact.

The Importance of Genuine Rewards and Communication

When offering rewards, it's crucial to be genuine. How many times have you received a "preferred member" plastic card with a toll-free number on the back? Where's the value in that?

Also, avoid making promises you can't keep. Failing to deliver on your promises could seriously damage your reputation and credibility.

When communicating with your customers, be genuine, not generic. A letter that starts with "Dear Valued Reader," won't be as effective as "Dear [Customer's Name]." Remember, the goal is to build a relationship. Frequency marketing communication should be one-to-one, not one-to-a-million.

Adding Real Value to Your Customers

The most crucial aspect of a successful frequency marketing program is adding real value to your customers. You need to evaluate your product or service to determine if it warrants repeat purchases. If your product or service isn't of high quality, your frequency marketing strategy is likely to fail.

Frequency marketing isn't suitable for all businesses. It's typically applicable to businesses that rely heavily on repeat business and operate in industries where it's challenging to distinguish between competitors. If you have a monopoly in your industry, implementing a frequency marketing strategy might not make sense.

One downside of frequency marketing is that once your competitors realize its effectiveness, they might adopt the same strategy, rendering it less effective. That's why it's essential to continually refine and revamp your frequency marketing strategy.

Frequency marketing is still relatively new on the internet, with many programs currently being developed. Many companies are starting to incorporate this long-term strategy into their marketing efforts. Will yours be one of them?