Continuity Marketing Insights for Online Nutraceuticals, OTC pills, vitamin suppliers... You've heard all the great statistics that continuity hard to right a wrong impression. marketing programs bring to the table (i.e. automatically recurring order programs like subscriptions and auto- So what are the keys to flawless execution? What must ship): you not do? Start with understanding the full life cycle of 1) Continuity customers buy 3-6 times per year compared a continuity program. As seen in the diagram, the life to 1-2 purchases for average customers; cycle has many moving parts and requires thoughtful sequencing and synchronization. 2) Continuity offers maintain as much as 20% higher retention rates, and Promotion 3) The cost of keeping customers is only Promotion It begins with 20% the cost of finding a new promotion - its customer. In this tight economy, positioning and its successful continuity Payment variableness. The programs can provide relief to key to identifying promotions that elicit an organization the best responses since it can offer “Re-Up” is diligent analysis predictable of existing customer revenue streams and inventory buying behaviors. demand. How? Yet, it's not Continuity Utilize a uncommon upon Marketing Inventory CRM launch of continuity system in programs to be conjunction faced with anemic Surprise with order results, such as, & Delight and inventory 50% higher management cancellation rates systems that reflect and only 50% of actual purchase new customers make 1st behavior and that can a second purchase. What Shipment link purchase revenue happened? It should have worked right? Maybe it's time to give Customer atnodparolldtuhcetsa,sosoffceirasted your nutraceutical business a healthy Service customer data. This dose of marketing medicine. goes well beyond website analytics to the post-sale activities that The Anti-Aging Secret: reveal invaluable clues to creating more effective Continuity Marketing acquisition and retention strategies. If you know, for example that 70% of all customers who order a It's important to remember that continuity marketing is 30-day bottle of Omega 3 pills also buy a 30 day not just about the offer. The key to ongoing success and bottle of multi-vitamins, then you've got the makings of a potentially lucrative continuity longevity to any premier continuity offering is in its flawless and flexible execution. Think of it as the first program that can be offered to new and existing impression we make when any of us meet a new person. customers alike. We quickly judge; we usually never change our mind; and
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What makes continuity difficult to execute is the complexity of managing the multi-payment structure that accompanies these types of offers. Capturing the initial payment is just the beginning of managing profitable campaigns – there's increasing risk of payment default the more you stretch out the payment schedule. And, this risk gets further compounded if you offer free trials or free shipping – it's important that payment charges be at the right price and at the right time. For example, do you collect 100% of taxes, shipping and handling on the first payment, or do you spread it out across 4 payments? Every program is different and you must have the flexibility to test which combination works best. Plus, you need to manage your bad debt workflow to ensure you're optimizing your collections – i.e. are you paying $1 in payment processing attempts to collect $0.50?
Along with a good payment management system, you should also have the ability to confirm inventory availability in real time. Why? If your customer leaves your site having submitted payment only to find out a week later that it's back ordered, you will not only have an angry customer tying up your phone lines (and bad mouthing your brand on social sites), you'll likely lose that customer forever. Nothing kills a continuity revenue stream faster than back orders. The ability to remove items from your site once out of stock prevents back order situations from getting really ugly. Conversely, adding items back to your website once inventory has been replenished is just as important.
The first shipment, once received by your customer, is another opportunity to make a good first impression. This is especially true for new online customers because they don't have any experience with your brand and they can become dissatisfied very easily if you do not live up to their expectations. The ability to effectively manage customer expectations goes a long way to increase lifetime value, customer loyalty and profitability. How? Communicate the benefits of your offer and how the continuity program process works clearly and in detail. For example, send a separate welcome email to customers after their first purchase in addition to any subsequent order status emails (i.e. order and ...