You’ve doubtless heard of the Pareto Principle, also called the 80/20 rule. It’s been applied to many facets of life. In retail, the Pareto Principle states that 80% of your sales come from just 20% of your customers. That applies to catalogers as well!
Getting new customers is great, but keeping them coming back on a regular basis is gold. Consider this:
- Repeat customers spend 33% more with you than new customers do.
- It costs 6-7 times more money to coax a new customer into making that first purchase than to retain an existing customer.
- You get 107% more referrals from repeat customers than from non-customers. So not only are they buying more, they’re helping strengthen and advertise your brand!
But how can retailers keep those loyal customers in such a competitive marketplace? That’s where interest-based marketing strategies and the basic principles of personal attention, rewards, and follow-up come into play.
Most catalogers tailor their catalog mailings to the customers who receive them. Variations can include different catalog sizes, different product collections, and different discounts depending on the recipient. The sales data you capture from digital catalog editions, apps, and previous transactions can help you fine-tune your interest-based marketing.
Rewards for loyalty
Rewards programs are everywhere these days, from grocery stores to hotels, from shoe stores to gas stations. That’s because, when done right, customer loyalty and rewards programs really do work.
A successful rewards program offers points for purchases, and unused points should expire within a certain timeframe. Customers who buy more or at higher price points should be in a higher tier with higher rewards. And your rewards program should be easy to use and at least as good as your competitors’!
Stick with it
There’s no guarantee that any one catalog mailing will find your customer ready to buy — so regular mailings with a variety of product offerings are the kind of follow-up that is key to keeping your company top of mind.
It’s also important to make your catalogs eye-catching and engaging enough to keep around: The Wall Street Journal, in an article about the importance of print catalogs, describes how high-end catalogs like Williams-Sonoma and Anthropologie are often kept on coffee tables and browsed over time. When customers peruse a beautiful or interesting catalog at their leisure, they spend more time with it — and more money with your company.
Loyal customers who come back to buy again are the lifeblood of a company. High quality print catalogs feed that loyalty like no other connection.