With this article, we conclude our five-part series on"Appealing to Repeat, Loyal Customers" Our thrust here is on special events geared to repeat customers.
Just recently, we were talking to some consumers about the things that bother them about the stores they regularly patronize. Among the major factors that they mentioned were one error of commission and one error of omission that they believe many of their favorite retailers are engaging in with regard to special events.
The error of commission:
Many regular customers say they are unhappy when (a) they are sent notices about the "special events" geared to loyal shoppers that actually turn out to also be promoted to the general public and/or (b) they feel that these events do not offer enough of a benefit for loyal patrons (such as opening the store an hour early for a product sale that is then made available to everyone).
The error of omission:
Many regular customers feel that their favorite retailers take them for granted by not having any (or enough) special events for them. They would like to see the retailers somehow reward their continuing patronage; and they think that frequent shopper programs (the subject of a prior article in this series) are a step in the right direction.
Here are several suggestions to help retailers avoid making any special events' errors of commission and/or omission:
- In rewarding regular shoppers by holding a special sale while the store is closed to the general public, do not then have the same special sale for the general public when the store is open for business.
- During special events, make your regular shoppers feel they are being singled out for attention. Have salespeople wear buttons with messages such as "We appreciate your business and we want to show you how much." Perhaps, you could use phone calls to invite these shoppers to special events instead of sending an impersonal letter.
- Special events do not have to be price-oriented. Periodically, there can be fashion shows, meet the author receptions, cooking demonstrations, sports celebrities, etc. just for regular customers.
- Remember, regular customers are less price-sensitive than non-regulars, but they do expect to be treated fairly and to get a good value for their money.
- Special events for regular customers should be spaced out over the year. For example, there could be four such events--each keyed to a season of the year or a special theme.
- Some special events can be used to reward regular customers AND to attract new ones. For instance, a fashion show announcement mailed to regular customers could say: "We want to thank you for shopping with us. So, please come to our special, invitation-only fashion show for loyal customers - and bring a friend along with you."
In adopting the preceding recommendations, retailers should not abandon their efforts to reach new customers with special events. They should just be sure that there are some appropriate separate events for current customers and new customers, and that those events should be different from one another.
About the Authors
Joel R. Evans, Ph.D., is the RMI Distinguished Professor of Business and Barry Berman, Ph.D., is the Miller Distinguished Professor of Business - both in the Zarb School of Business at Hofstra University (www.hofstra.edu). Drs. Evans and Berman are co-authors of Marketing, 8E: Marketing in the 21st Century (www.atomicdog.com/evansberman) and Retail Management: A Strategic Approach, 8E (www.prenhall.com/bermanevans). They are also partners in Berman Evans Associates LLC, a consulting firm. They may be reached at mktjre@hofstra.edu or mktbxb@hofstra.edu.