06.06.2019

Greedy marketing is a war with no winners.

Personalized marketing works as good as the discount system, but most companies prefer to play price roulette. The excitement in this game is also boosted by the desire to get ahead of competitors, which can lead to loss of marginality and even bankruptcy. However, some of the marketers assume that the benefits of personalized marketing much exaggerate its capabilities: while practice lags behind the theory. Also, public scandals like Facebook and Cambridge Analytica threaten the untapped potential of personalized marketing.

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There are not so many companies on the market that can really win this war for customers. For example, creators of software or electronic content will profit in any case, even reducing prices by 70-80%.
Such success seduces to such an extent that many manufacturers of material goods thoughtlessly enter into price confrontations, deciding on discounts without undue delay and at least a minimal analysis of the market.

But how to achieve customer loyalty, if a competitor uses the same methods as you? In this situation, you can connect discounts, just do not immediately reduce prices by 15-20%. Do an experiment. Divide all your customers into 3 groups and send them an e-mail or SMS offer with different discounts, for example, 5, 10, 20%. As practice shows, the difference between the number of people who responded to various proposals will be almost the same. So is it worth it right off the bat?

Every marketer should understand that discounts are a pleasant bonus for the client trusting the company with their data, agreeing to receive advertising alerts, and allowing them to monitor their purchases. Discounts should be a kind of compliment to a loyal customer, and they should be submitted so that the price reduction was similar to the gratitude for its purchase, and did not frankly show that the company’s affairs are wrong and it is ready to give its goods for nothing.

With love, 
Eridamis
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