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Misguided Loyalty Programs

Posted on 10. Mar, 2010 by Terry Vavra.

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In most developed countries these days there is a basic cultural value which recognizes the unquestioned equality of all people - requiring they all be treated with equal respect.  But, as appropriate as this perspective is for cultures, it isn’t a good basic premise for the conduct of business.  If a business manages its customers [...]

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Buying Back Customers

Posted on 03. Mar, 2010 by Terry Vavra.

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I’ve often said that businesspeople regularly fail to appreciate customers until they lose them.  Suggest spending money on a customer retention program and businesspeople will find every reason not to.  Yet, when a customer defects, they’ll eagerly throw money at the defecting customer in an attempt to win them back - even when they may [...]

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The Truth about Truth in Survey Research

Posted on 14. Jun, 2009 by Terry Vavra.

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We Can’t Trust Survey Respondents?  You’re Kidding Me! 
A journal that I (used to) respect, the Journal of Consumer Research is printing an article in its August issue, that ‘reveals’ a truth that most of us who can remember black and white television were taught in marketing research 101.  This astounding fact, (hold on to your [...]

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Hyundai Must Believe in Word-of-Mouth, They’re Paying for It!

Posted on 30. May, 2009 by Terry Vavra.

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Buy a Hyundai, Become a Spokesperson
The newest roll-out of the Hyundai Assurance Program features a “marketing fee” offered to customers during their first six months of owning a new Hyundai.  One commercial says, “You’ll probably talk to your friends about your new Hyundai, and that’s marketing.  Why shouldn’t you get paid for it? [my interpretation].  [...]

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When Fund-Raising Jeopardizes Donor Relationships

Posted on 27. May, 2009 by Terry Vavra.

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NYC’s Channel 13’s conduct of a “special fundraising event” suggests that 13’s fundraising is ruled by RFM. This technique disregards a donor’s relationship with an organization in favor of maximizing immediate revenue generation. It exploits a small segment of a donorbase until they are either dried up or have been chased away.

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Pricing to Preserve Customer Relationships

Posted on 05. May, 2009 by Terry Vavra.

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I just returned from NASCAR at the Richmond International Raceway.  What a blast!
 

Most entertainment and sports events industries appear oblivious to the current recession, having continued to raise admission prices to stratospheric levels.  Not so NASCAR.  The Association has adopted a more realistic pricing strategy.  President of RIR, Doug Fritz explains it this way, “We have [...]

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Stop Demoting Customers!

Posted on 23. Apr, 2009 by Terry Vavra.

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When economic times get tough, we all start to examine expenses and “tighten our belts”.  But our customers may be easing off in their spending as well.  That’s why I find it particularly ironic that many businesses turn to their customer loyalty programs for savings.  They appear to fool themselves into thinking that if they [...]

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