Warm Up Your Marketing Now!

Dear Reader,

Hi! I’m writing this letter from inside my not-quite warm apartment.

Unfortunately, I live in a building from 1856 and it tends to be drafty since it lacks insulation.

The big news: New York City broke its 701 day record for no snow, even though it was only 1 inch. It’s nothing to write home about compared to the snow and frigid temperatures in other parts of the country.

Heidi Cohen in Union Square Park, the last time it snowed, January 31, 2022

Amazingly, 110,298 people braved the snow and below zero temperatures to participate in the 1,657 precinct caucuses across Iowa, the first official primary vote in the 2024 US Election. They accounted for about 15% of the state’s 752,200 registered Republicans, below the 20% to 30% participation in recent Presidential elections. (Source: DesMoines Register)

At their core, politics and elections are a lot like marketing because:

• Candidates target voters based on a variety of demographics and other attributes, essentially creating a political version of a marketing persona.
• Voters assess their political options based on their feelings and attitudes towards different candidates and political parties.

When my father ran a local newspaper in Queens, New York, he loved election years. Due to its targeted audience, elections always brought in additional advertising revenue.

Regardless of your political views, what’s amazing from a marketing perspective is that the Iowa candidates spent almost $124 million on campaign advertising. Since less people than expected attended the caucuses, that averages $1,124 per person who voted. (Source: NPR)

YIKES!
What if you had to spend that much for each new customer you acquired?

Even worse, what if you didn’t necessarily get each new customer to purchase more than once from your company, increasing your cost per acquisition?

According to research by McKinsey, 87% of customers shop around for their next purchase. When roughly 9 out of 10 customers will at least look at other options the next time they need your product, you don’t own your customer.

This happens for a variety of reasons:

• They were dissatisfied with your product or service. This can happen for factors beyond the actual offering such as customer service or delivery.
• They found a better deal on the same or similar product.
• They no longer need your offering. For example, they’ve moved or have outgrown your offering.

While you may not be able to do much when your product’s no longer relevant, provide opportunities that allow your customers to get their problems with your products worked out when they purchase the first time.

While roughly a third of these shoppers continue to buy you, almost 3 out of 5 shoppers will get lured away to another brand or product. This matters since customer acquisition costs more than retention marketing because you have to pay for third-party media including influencers to find and attract new customers.

To re-enter purchase consideration for your past and lapsed customers, acquire contact information and permission to communicate with your buyers.

Actionable Marketing Tips

• Provide prospects and customers with multiple entry points to get relevant information about your offering. Since the pandemic, QR codes have become ubiquitous. Use them where relevant, such as on your retail window or on your product labeling to provide information 24/7.
• Train your sales representatives and customer service agents to give customers the help they need. At the core, your goal is to extend the purchase beyond being a transaction where possible.
• Improve on-boarding and post-sales use. Where possible help buyers to use your products. Combine these tips with a post-sale followup email.
• Retain customers by offering information your customers find useful and look forward to reading instead of a non-stop series of sales messages.
• Offer loyalty programs. Give customers an incentive to continue to purchase from your business.