December 17, 2024

If Discounts Aren't Part Of The System, What Replaces It?

You might remember this presentation from May 2024 (click here).

Last week I visited their community forum, and on the website I looked at an item I saw mentioned in the community forum. Yes, I was logged in. So yes, they sent me an SMS message two hours later following up on product I looked at. You don't have to look at the item, either. They send SMS messages based on your community comments and interests, triggered by a visit to the community.

  • They have a half-million registered community users. How many do you have?
  • When a member of their community reads a post, they record the activity and act upon the activity. Do you do that?
  • They are able to generate eight figure annual sales in a world where Amazon can deliver the same item at the same price immediately. That's an important test ... if a customer chooses you and your slower-than-Amazon delivery over Amazon at the same price for the same item, your "system" is working.

Now, I get it. You don't believe in communities, though many of you have thousands of people watching your videos (so you do have a community, you just don't call it one).

There are two additional things that are an important part of my "system".
  • When a customer is inactive or lapses, record every possible interaction you have with that customer, because often the customer isn't inactive ... the customer is just not purchasing. You want a customer who has not purchased in 18 months if the customer is still interacting with your brand monthly.
  • When an inactive customer decides to interact with you, ACT UPON IT!! This is where merchandise personalization is so darn important. Merchandise personalization adds 20% to 50% to your response/conversion metrics. You can double/triple response/conversion by acting upon an 18 month buyer who decides to interact with your community and you then personalize the merchandising experience for the customer.


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