Tuesday, August 18, 2009

Brands Are Moving Away From Coupons and Toward CRM

CM Comment: Interesting perspective on coupons. Article offers that coupons cannot be used to drive repeat purchase over time, but rather are designed to spur trial among non-users.

August 10, 2009: summarized from AdAge.com -- Advertisers from Domino's Pizza to Victoria's Secret have begun building out mobile-marketing infrastructures that deliver value and convenience for customers in an effort to keep them engaged and loyal to the brand. And for categories such as diapers, where parents can end up spending a few thousand dollars over several years, such relationship building is especially key.

"What makes mobile work is the recognition that the consumer is in charge," said Bryon Morrison, president of Omnicom's mobile agency, Ipsh, which recently handled the Pull-Ups effort for Kimberly-Clark. "This program allows moms to engage with multiple mobile channels and online ... and then builds the relationship by continuously optimizing the program and adding more value for each interaction."

But driving loyalty is more about delivering value beyond price, and most mobile customer-relationship-management programs still focus too much on coupons and SMS alerts about new products. Done correctly, CRM programs spur purchases without compromising price points, and can often reinforce pricing, because the brand is selling benefits and personalization.

"Coupons are almost exactly the opposite of CRM -- [coupons are] not used to drive repeat purchase over time, they're designed to spur trial among non-users and to promote usually new-product introductions based on price," said Eric Bader, managing partner of mobile-marketing firm Brand in Hand, Procter & Gamble's mobile agency of record.

Read more at: http://bit.ly/434h2I

No comments:

Post a Comment