12-04-2005, 01:17 PM
Quote:Reward schedules are particularly relevant now, in the midst of Q4 promotions. Today, we'll discuss a principle I call "Pavlovian marketing," which originates from reward schedules' decay rates.
Pavlovian marketing stems from the idea you train users to only shop with you when they know they'll receive a discount. At a recent Shop.org retailer meeting I keynoted, several retailers told me they're afraid to do any promotions on a regular schedule. Profit margins decline while their customers wait for these coupons before buying...
Train users to shop with you because of discounts, and you'll see a large drop-off once the promotions end. Smart companies focus on brand image and customer retention based on wide selection, great customer support, and personalized service....
full article: http://www.clickz.com/experts/crm/traffi...hp/3567521