Have you became a victim of the monetary marketing?

Day 31

So today, my wife's agenda was to go shopping at Macy's because she received a 25 dollars coupon from them. I tagged along with my wife for a walk to the mall and participate in the shopping with the newly found treasure of 25 dollars from Macy's. The plan was to go to store and shop for 25 dollars worth and then walk around the mall for some good exercise. Well half of the plan worked, and Macy's succeeded in their monetary advertisement. We walked out of the store spending over 100 dollars.

So here is my question: Have you became a victim of the monetary marketing?

It is amazing, how a small token of 25 dollars can drive customers to revisit the store. Unfortunately the small token of 25 dollars doesn't get you far and the customer winds up spending money they had not planned before. Have you caught yourself staring at an item you don't need but you are debating because the item it is on sale?

What is really wonder what kind of formula is used by the vendors to target their customers? Have you heard about RFM analysis? According to Search Data Management (2005), "RFM (recency, frequency, monetary) analysis is a marketing technique used to determine quantitatively which customers are the best ones by examining how recently a customer has purchased (recency), how often they purchase (frequency), and how much the customer spends (monetary)." The theory identified 80 percent of the business are from 20 percent customers.

So next time you receive a free token from a vendor, they have identified you in the 20 percent of the customers that cannot hold back when at a shopping spree. I am positive, that the RFM analysis enables the vendors to calculate the months in the year you shop the most. A marketing strategy based on your historic trail of shopping, with an intriguing token of appreciation for a month you shop the most.

"The best strategy of marketing is creating an experience for the customer of a win-win situation, and not feel marketed."

~Lenji Jacob


Reference:

Rouse, M. (2005) What is RFM analysis (recency, frequency, monetary)? Search Data Management Retrieved August 31, 2012, from http://searchdatamanagement.techtarget.com/definition/RFM-analysis