A simple loyalty lever for product manufacturers

Seth Godin outlines a simple loyalty lever product manufacturers can use:

If you put a little less in the box, people will run out sooner and have to buy more.

If you give people a little more for their money, they'll purchase less often, but become more loyal.

Most big companies are in the "little less" camp. Think: giant chip bag that's full of mostly air. "Warning: measured by weight, not volume" with a bag the size of a swimming pool.

Which is why store brands and cheap substitutes eat into their market share.

A little more can even be a complementary product. Sell a book, throw in a few bookmarks. Sell a dress, throw in a scarf.

Measure the different levels of customer loyalty with Repeat Customer Insights. It uses various models to segment and grade your customers based on their behavior.

Eric Davis

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Topics: Customer loyalty

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