10.6.15

Let’s Get Exclusive!

A key to understanding the power of exclusivity can be found in a statement by database marketing consultant Fred Newell in Discount Merchandiser (September 1998), “Marketers must learn to understand customers and customers’ perceptions of value.”

Collectors are willing to pay anywhere from $10 to $50 annually to “join a club” (i.e. put their names in a database), because they get something with a very high perceived value. This usually includes an exclusive “gift” – a doll, bear, or other collectible item that nonmembers can’t get – as well as newsletters, membership cards, buttons, posters, catalogs, the opportunity to purchase special “club edition” pieces, hats, T-shirts, or jewelry, and to attend special club events. These are all items and benefits that don’t cost the marketer a lot, but have a high value to the collector.

Many of the clubs benefit retailers by requiring members to redeem certificates for the club edition pieces at a retail store. This not only gives the retailer a cut of the selling price, but also brings highly qualified buyers into the store, where they will Read the rest of this entry »