I crave Points: Hallmark, give them to me! (Part 1 of 2)

Subjects: Points-accumulation programs
Principle: How to use Points to increase sales via returning customers
Referenced Reading:

• “Permission Marketing” by Seth Godin

As discussed on Monday, there are 3 ways to increase business

• Increase the number of clients
• Increase the Average purchase they make
• Increase the frequency of purchase

Today we talk about a way to increase both the second and the third one: Points.

As Seth Godin describes on page 98 of Permission Marketing, there are 5 levels of permission and Points are the second-highest level, just after “Intravenous (or “Purchase on Approval”, like the “book of the month” club, that chooses and purchases books for you)

Using points helps with soliciting returning business and increasing average purchase: people tend to buy more and more often if the see they are accumulating points toward a reward. I am amazed by how few companies use this extremely powerful mechanism.

It is so easy to set up: Get a point card designed by your nephew, print 1,000 at the local Kinko’s (open 24 hours, so you can do it even after work hours) and start handing them tomorrow to your clients.

I can’t believe my Dry cleaner is not doing it, and my cleaning lady, and my local small Pizza place…

So, after American Airlines, Hallmark got me: they proposed me in their store to register for their point program: hey of course I sign up, I want to see what happens !

About 2 weeks later, I got my personal card from Hallmark: now they know me and they keep a direct contact with me.

And every time I think about a card, I think Hallmark store first: they reward me, shopping there is in my best interest…

Kramerilio in Usa