I really enjoyed my early career in direct marketing. One of the things I found interesting was determining which promotional ideas would work and which wouldn’t. The idea was to spend only what was necessary to effectively acquire a customer, and to make the communication as targetted as possible.
We’d use promotional giveaways as relevent as possible to the product value proposition. An insurance one was a free pen for writing in to advise the date of your next renewal notice (we had a 50/50 chance if we knew when their insurance was due – otherwise they weren’t the slightest bit interested in insurance any other time of year).
Now we see plenty of credit card free insurance period offers, honeymoon home loan rate offers, mobile phone intro only deals and health clubs offering new members better deals than existing members. Everyone likes a good deal, but much of this activity just generates customer churn and reduces loyalty.
So, what has been your best promotion? Let me know….