If there’s one unexpected mental shortcut I’ve learned from examining dozens of corporate loyalty efforts and customer databases, its that just about any idea will work for 20% of customers. The problem for marketers? You can’t predict which 20% with a lot of certainty, and there’s only partial overlap between any particular 20%.
Price promotion? 20% (probably more, but you get the point)
Loyalty program? 20%
Special event? 20%
Early access to new releases? 20%
The list goes on. A few get more, many get less, but 20% is a good rule of thumb. Why 20%? Hard to say, but that’s what the data says.
1) Incorporate as many interesting ideas as you can manage effectively, since each will produce results. But don’t stretch too thin, or all of them will drop off.
2) Choose ideas that do not overlap, to ensure maximum return and responsiveness.
3) Budget has an impact, no doubt. Stack ranking from cheapest to most expensive isn’t a bad idea.
There’s a whole separate group of initiatives that only 1% will respond to…that’s for a later post.