Wednesday, May 18, 2011

repeat business vs loyalty

Just a note on the group buying thing. In Australia we've got Scoopon, Spreets, Cudo, Groupon, Living Social and numerous others.

These sites are great for us punters looking to pick up a bargain or two. No doubt.
And if your company can sustain it, being part of those deals great for repeat business.

But let's not confuse repeat business with loyalty.

Deal-hunters, opportunists and coupon cutter-outers can be a short-term fix but it doesn't play out in the long run.

Constantly being on-sale or in promotion literally cheapens a brand.
Like these carpet warehouses or furniture stores.
Only a mug would ever buy a full-price sofa.

I'd rather go to Ikea. Where the price is the price. End of story.

Apple products are the same price wherever you shop. If you're not going to get a better price at Discount Electronics Inc then you might as well shop in the Apple Store.
The value-add there is the fantastic retail experience.

Repeat buyers will keep buying until a better deal comes along.
Loyalty is when your customer will turn down a better 'deal' to keep buying from you.

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