Narrator:
George has given some thought these last few weeks to how much he and his family spend on certain goods. He realized that at some point, merchandisers have gained his trust and made him an avid spender. With that in mind, here’s a share of George’s thoughts on how partnership marketing strategies can increase a businesses’ customer spending per visit.
George:
I may or may not be tech-savvy. But if you would ask my acquaintances, they would all tell you that I enjoy buying new gadgets – whether I need them or not – just to satisfy my curiosity regarding the new technology. And, like any other tech enthusiast, I happen to have a store that I like to purchase from.
Seeing that I keep coming back to this store and prefer to purchase items from them and not from their competition, I naturally asked myself what were the merchandiser’s tactics to maintain his customers loyally?
So, when I tried to see the merchandiser’s approach to keeping his customers coming back, I realized that he applied tactics based on Partnership Marketing principles.
Narrator:
Let’s break down the merchandiser’s tactics used on gaining George’s trust in terms of Partnership Marketing
- Always good prices and offers
- Quality over quantity
- The use of smart promotion tactics
All of these tactics provide a good image of how the merchandiser applied the Loyalty strategy on keeping George active as a customer and how he encouraged George to increase his spend.
George:
Here is what I’ve extracted myself from the merchandisers’ current strategy:
Keeping your customers loyal is a good start in making them increase their spend on your goods. It is more valuable to keep your existing customers happy and eager to spend more, rather than spending continuously on acquiring new clients.
The merchandiser realized that before myself and this is why I am constantly coming back for more. His strategy all along was to increase the average amount spent by each existing customer by always offering something valuable to the customer.
Narrator:
How did the merchandiser do it and how can you apply it yourself?
A good way to increase customer spending is to use the Loyalty strategy in terms of the Partnership Marketing approach, which ensures your business the longevity of customers and the volume and frequency of their purchase.
George:
Based on my frequency of purchase, the merchandiser rewarded me for being a loyal customer offering me a partner brand discount.
The merchandiser offered me additional value for increased use of his products. By that, he ensured that I will be spending more on my future shopping spree. It also created a personal connection which most definitely increased the potential of continuous purchase on my side.
Narrator:
The merchandiser had determined George’s spending patterns and profile and then provided offers in conjunction with a brand he had already purchased. Therefore, he ensured George’s loyalty and also increased George’s future spend through Partnership Marketing.
George:
Another smart tactic the merchandiser used was to reward me with a different and more generous discount by the amount I have spent.
Narrator:
This tactic quickly increased George’s spending amount on the merchandiser’s products. By rewarding George’s loyalty based on frequency of his purchases and based on the amount spent, the merchandiser allowed his brand to successfully align his offerings to improve George’s retention rate and also increase his spend.
Successful partnerships that increased customer spend
American Express x British Airways
American Express has partnered up with one of the biggest names in aviation history, British Airways to provide a loyalty program ought to increase customer spend within the financial services company. American Express encouraged their holders to spend more in return for points that were converted into air miles at British Airways.
The partnership worked for both of the companies, on one hand, it increased the capital image of British Airways and increased customer spend at American Express.
Mega Image x French Bull
French Bull is an American kitchenware and homeware accessories brand that focuses on colorful designs who partnered up with Mega Image – a Romanian supermarket chain – in order to increase customer spend at Mega Image. Customers were invited to spend more and gain loyalty points that allowed them to shop for discounted French Bull products.
The partnership worked in both ways: French Bull gained capital on Romanian Market and it increased customer spend at Mega Image.
Narrator:
When done through smart collaboration, the many types of partnership marketing can and will increase reach, drive traffic, support and drive sales and most definitely enrich the social capital of a brand.
To sum it up, this is what you can do next
- Join our platform for FREE and create your profile based on your target audience
- Find partners who target the same specific profile
- Connect with such partners and start increasing customer spend!
Next week we will be back with chapter 3.
If you want to find & connect with new partners and start using partnership marketing, sign up for FREE on our platform:
https://www.partnership-marketing.net/