The Beauty of Continuity Marketing
Automatic shipments and the shameful “dirty load-up”November 27, 2012 By Denny Hatch
An ideal direct marketing business model is one where the advertiser receives an order and has permission to ship products on a continuing basis automatically and automatically charge a credit card each time.
For example, I recently had a client whose catalog business is dietary supplements and vitamins. The main object was to sell pills, capsules and beauty products.
The next—and very important—step was to persuade buyers to sign up for an automatic shipment service.
Benefit to the customer: If you've bought a month's supply of pills and they are starting to work, it's foolish to stop taking them. You are back to square one. Under the automatic shipment plan, you never have to remember to reorder and you never run out.
Benefit to the pill peddler: continual shipments with an automatic charge to the customer's credit card mean automatic sales and automatic profits.
My client told me that 20 percent of his buyers were on the automatic shipment plan and these were the most profitable customers in his database.
To my way of thinking, one primary object of the business would be to raise the percentage of auto-ship takers from 20 percent to 40 percent and ultimately to 80 percent.
This is efficient continuity marketing.
I was fascinated to come across two stories in one week describing new businesses based on the continuity business model:
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