The technology that increases customer lifetime value

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By: Wise Marketer Staff |

Posted on August 15, 2005

A new report suggests that Americans will be more cautious about spending money over this year's Christmas shopping period, but customer-focussed retailers who market wisely and efficiently will still do well.

According to direct marketing agency, G.A. Wright Marketing's Retail Trends 2005 report, retailers that take a customer-driven approach to marketing will be able to withstand the competition for dwindling discretionary income, and still have a productive and profitable 2005. The key to success for small retailers is to identify their best customers, find potential niches to cater to, get to know what motivates customers and then interact as individually as possible. Retail Trends 2005 suggests that retailers creating personal experiences and communications are those most likely to come out ahead this holiday season. Personalising the selling experience and marketing messages will help to level the playing field between small and larger retailers.

According to Gary Wright, G. A. Wright Marketing's CEO, "Technology today puts personalised communications within the reach of every retailer, regardless of size. With new database and digital press technology, small retailers can affordably engage in one-on-one communications which has been proven to significantly increase a customer's brand loyalty and lifetime value."

Personalised communications
Wright encourages retailers to explore database programmes and digital production opportunities that will merge customer data with promotional materials in order to produce personalised and highly relevant materials at a fraction of traditional printing costs. His report indicates that when you communicate with a known customer, you are five times more likely to generate a response and a sale. When you add customer-specific information to that correspondence, the potential increase jumps to 13. Research conducted by Romano and Broudy shows that personalised communications can increase response rates by as much as 500%.

The report includes sales forecasts and strategic recommendations for many retail sectors including women's, men's and children's apparel, footwear, jewellery, golf, hardware, gifts and collectibles, sports and more. It also contains 21 steps for making the most of the current retail landscape and gaining a competitive edge.

A copy of the report can be obtained from Jeanette McMurtry at G. A. Wright Marketing by calling +1 303 333 4453, or by email.

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