September 16, 2018

Life Tables and Anniversary Programs

We ended last week by talking about Welcome Programs.

Another important program is your Anniversary Program.

You have an Anniversary Program, right?

Right?

For the past twenty years, my website hosting provider employed their version of an Anniversary Program. Once 10 months have elapsed since my annual purchase, they send me an email and offer me 12 months of service for the price of 10. Done! For twenty consecutive year we've played this dance.

Look at the two "red" rows in the table ... labeled "12" and "24". These are at twelve months and twenty-four months after a first purchase. Notice that the incremental rebuy rates in those specific months are much higher than in surrounding months. This means that the customer is exhibiting "seasonal buying habits".

Seasonal buying habits happen all the time.
  • Christmas.
  • Spring (for gardening companies).
  • Nordstrom Anniversary Sale.
  • Web Hosting Companies (as mentioned above).
Way back in the day at Lands' End, we had swimsuit buyers ... they'd buy in February (for spring break), then in March - April (south), then in May - June (north). Well, that's part of your Anniversary Program, right? You use email marketing to speak to the customer as the anniversary of a prior purchase happens, marketing the family of products that the customer likes to buy during an anniversary period, right?

When I worked at Eddie Bauer, we had big anniversary periods in Outerwear in October. Once again, when you know that is the case, you use email marketing to take full advantage.

The life table clearly illustrates the need for Welcome Programs and Anniversary Programs. Please take advantage of what you learned here.
  1. Run life tables for first-time buyers.
  2. Use email marketing to take full advantage of your Welcome Program and Anniversary Program. It costs you nothing ... and the data strongly suggests that the stakes are high. Again, the cost is virtually nothing ... and the rewards are "something".
Do something!

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