Design your digital promotions with the newest digital media content, including digital music, digital download promotions and ringtones of your customers' favorite artists. Hip Digital Media, the leading digital promotions firm, joined forces with Promotional Currency, specializing in promotions including promotional risk coverage to prevent over redemption on promotions. These two digital music powerhouses joined forces to merge digital content, with entertainment licensing, and proprietary risk coverage models, to deliver turnkey, fixed cost solutions for the promotional marketplace.
Thursday, September 30, 2010
Digital Promotions Are Gaining Customer Loyalty
Digital promotions can go a long way in earning customer loyalty, which is very important to your business. That's because return business is going to be much more profitable than your new business.
It can cost five times as much to find a new customer than it does to keep an old one. It also takes a lot less effort to keep old customers than it does to find new ones. Plus, if you can convert returning customers to raving fans, you'll have people telling their friends about your business. You just don't get that word of mouth marketing by trying to gain new customers; it comes from the customers who are loyal to you and your brand.
But while most companies will use discounts and special offers to maintain customer loyalty, digital promotions make it possible for you to increase sales and keep your pricing at its current level, which can boost your profits even more.
That's because when you offer a discount, the savings comes off your profit margin. A 10% discount could be as much as a 20% or even 30% cut into your profits. But digital promotions will be much cheaper, cut into your profits less, and encourage customer loyalty in a way that a coupon just can't.
So, not only have you reduced the value of your product, you've just told your customer, "it's really not worth as much, and in fact, we overcharged you by 10% earlier." You also haven't done anything to earn their loyalty. You haven't done anything to make them love you, tell your friends about you, or come back again and again.
Digital promotions are a lot like a frequent buyers program ("Buy 9 items, and your 10th is free"). These programs are wildly successful, and customer loyalty marketers love them. That's because they compel the customer to return several times, until they make enough purchases to get their free item. (Coupons don't do that.)
Your digital promotions can be more along the lines of "buy 10 items, and get 5 free ringtone downloads," "refer 5 friends, get a free wallpaper," or even "upgrade to our premium membership, and get a free skin for your iPhone or Droid." You can tie your digital promotions into any fulfillment condition you want: purchases, references, upgrades, you name it.
The great thing about digital promotions is that 1) they only cost you the number of songs, which can be less than $1 per download, or the cost of the skins, which can be less than $7, depending on the provider.
Another great thing about a digital promotions campaign is that you can easily measure the ROI of the program. Whenever someone completes their condition — buy the 9 items, refer the 5 friends, etc. — you can determine who did it, when they downloaded their digital content, and how many more times they met the conditions to get more content.
You can also examine all this data to determine who your best customers are, who your most profitable customers are, who brings in the most new customers (and how much they spent), and even your most popular digital promotions content.
You can also test your digital promotion campaigns. Do some A/B testing of two different campaigns, and compare their success rate. You can test the different times of year, or the different levels of difficulty of fulfillment, or even compare it to two different types of giveaways, and use that data to see what kind of digital content your customers would like to "win" in the future.
Digital promotions campaigns are an excellent way to gain customer loyalty, while preserving your profit margin. You can tie the digital promotions directly into sales, it has a higher perceived value, you can measure your ROI, and even use it for market testing. It's the perfect marketing solution.
-Julie Ann Ross
It can cost five times as much to find a new customer than it does to keep an old one. It also takes a lot less effort to keep old customers than it does to find new ones. Plus, if you can convert returning customers to raving fans, you'll have people telling their friends about your business. You just don't get that word of mouth marketing by trying to gain new customers; it comes from the customers who are loyal to you and your brand.
But while most companies will use discounts and special offers to maintain customer loyalty, digital promotions make it possible for you to increase sales and keep your pricing at its current level, which can boost your profits even more.
That's because when you offer a discount, the savings comes off your profit margin. A 10% discount could be as much as a 20% or even 30% cut into your profits. But digital promotions will be much cheaper, cut into your profits less, and encourage customer loyalty in a way that a coupon just can't.
So, not only have you reduced the value of your product, you've just told your customer, "it's really not worth as much, and in fact, we overcharged you by 10% earlier." You also haven't done anything to earn their loyalty. You haven't done anything to make them love you, tell your friends about you, or come back again and again.
Why Digital Promotions Will Outperform Coupons
Digital promotions are a lot like a frequent buyers program ("Buy 9 items, and your 10th is free"). These programs are wildly successful, and customer loyalty marketers love them. That's because they compel the customer to return several times, until they make enough purchases to get their free item. (Coupons don't do that.)
Your digital promotions can be more along the lines of "buy 10 items, and get 5 free ringtone downloads," "refer 5 friends, get a free wallpaper," or even "upgrade to our premium membership, and get a free skin for your iPhone or Droid." You can tie your digital promotions into any fulfillment condition you want: purchases, references, upgrades, you name it.
The great thing about digital promotions is that 1) they only cost you the number of songs, which can be less than $1 per download, or the cost of the skins, which can be less than $7, depending on the provider.
You Can Measure the ROI of Your Digital Promotions
Another great thing about a digital promotions campaign is that you can easily measure the ROI of the program. Whenever someone completes their condition — buy the 9 items, refer the 5 friends, etc. — you can determine who did it, when they downloaded their digital content, and how many more times they met the conditions to get more content.
You can also examine all this data to determine who your best customers are, who your most profitable customers are, who brings in the most new customers (and how much they spent), and even your most popular digital promotions content.
You can also test your digital promotion campaigns. Do some A/B testing of two different campaigns, and compare their success rate. You can test the different times of year, or the different levels of difficulty of fulfillment, or even compare it to two different types of giveaways, and use that data to see what kind of digital content your customers would like to "win" in the future.
Digital promotions campaigns are an excellent way to gain customer loyalty, while preserving your profit margin. You can tie the digital promotions directly into sales, it has a higher perceived value, you can measure your ROI, and even use it for market testing. It's the perfect marketing solution.
-Julie Ann Ross
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