How to Create Store Groupies and Become a Retail Rock Star
November 20, 2007
Everyone likes to be an insider with exclusive access and priviliges. Rock stars have their groupies who get exclusive backstage access, a seat on the band bus, and who knows what else! Groupies, by definition, are ultra-loyal fans. But more importantly, groupies are talkers who unknowingly become a key component in the band’s overall marketing effort. Every time a groupie talks about their exclusive access with the band they generate more and more buzz. More buzz ultimately generates more business for the band in the music stores and at the concert ticket booth.
Retail stores can learn a lot from rock stars by identifying and constantly cultivating their own community of loyal store “groupies”. By giving customers an opportunity to become part of an exclusive club a retail store can increase customer loyalty to a level never before achieved. Furthermore, such customer’s tend to find opportunities to talk about their exclusive access to others which only makes it that much more desirable for non-members to earn the same privileges and access. A savvy retail marketer understands the value of leveraging a customer’s normal desire to be treated as someone special.
Suppose you started a free Preferred Customer Club in your store that would provide members with a free e-mail newsletter, a regular supply of valuable coupons, advance notice of new products that you’re planning to carry, and exclusive invitations to in-store events or seminars. If you were to offer every customer who walked into your store an opportunity to join your Preferred Customer Club how many customers would take you up on this opportunity? Ninety percent? Ninety-five percent? Fact is, most people want to be considered as being preferred and will gladly join once they understand the value proposition (a free opportunity to get special treatment and privileges).
Assuming you don’t sacrifice the value of the proposition to the customer – that is, you don’t start to treat them less special as time passes – your Preferred Club members will find it very hard to purchase the products or services that you sell from anyone else. They will generally become less price sensitive and more willing to recommend your store to others because they don’t want to lose the special “status” and privileges you and your sales staff have assigned to them.
In addition to increasing customer loyalty with a Preferred Customer Club the biggest advantage to the retailer is the amount of information that can be collected from a club member. If a retailer collected only the customer’s name and e-mail address he could actually reduce his print and broadcast advertising expenses significantly in favor of low-cost, e-mail advertising. Instead of paying for “shotgun” radio or newspaper advertising the retailer could easily launch highly targeted e-mail and website advertising that will produce more sales with lower marketing costs. E-mail marketing strategies that include online coupons also give you store “groupies” an easy way create more buzz by forwarding your marketing message and coupons to others.
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MELCOOPER/CGM Technica specializes in Online Marketing Strategies for Retail Stores and Services (OMS-RSS). For more information about how to use online marketing strategies to increase sales and profits for your retail store or service please visit MELCOOPER/CGM Technica at http://melcooper.com . You may contact us via e-mail at info@melcooper.com or by calling toll-free at 1-866-695-8669.