I wonder if it is a marketing ploy, but as RAC gets well into its 15 months for the price of 12, I see less nubers on my site than when they offered 25% off.
Of course when you do the sums, it is the same offer, but sold in a different way, but does the public see it that way?
Also, what is the RAC going to do next March when no one renews their membership, because they bought 15 months and not 12. I see some very pooor figures for early part of 2008, or they will have to dicount like made to get the new memberships to make up for the renewals.
Marketing is about offering your prices in a way the public like and understand, I can’t help feeling that Green Flag and the AA are benefitting from this promotion.
Anyway, what do I know!!
cover story: Breakdown Cover Reviews
June 14th, 2007 at 7:32 pm
Thanks for talking about RAC. I am the marketing chap who decided to go with this offer. Understand that is has led to a different pattern of responses from a more transparent straight discount, but overall it is working pretty well for us.
The aim is to try and vary our promotional activity attracting different types of member at different times.
It is the first time I have done something like this, all about experimenting and trying different things really.
Perhaps we could discuss how we can construct or talk about our offers in a way that works for you?
June 17th, 2007 at 12:05 am
Hi Nigel,
Thanks for the reply, Its is really good to get a reply from a service provider, evn though I nearly missed it with the spam posts I get.
I could only comment on the sales that come throught this site and a I suppose my own experience as an ex retail manager. Clearly you see it from a global view.
As a retail manager for a large organisation, we also would experiment with different sales stratergies i.e. 2 for the price 1, rather than a half price sale, to sell more volume etc. Also interest free credit would sell more kitchens than a 10% discount, even though it amounted to the same thing.
It is how the customer perceives the offer that will increase you sales, rather than the true value of discount. As far as this campaign was concerned, my RAC sales fell and a small increase in Green Flag occured, because at that time they were offering a basic service for £29.99.
I also believe that your renewals will be down at the normal time you would expect a renewal, because the customer still has 3 months left to go. So the benefit you feel you have now, will be lost next year.
Of course having the same offer on all the time constitutes not having an offer at all. A bit like the sofa retailers that always have 1/2 price sales and interest free credit. You dont feel the need to go down and “grab a bargain”, because you pretty much know the offers will remain on 11 months of the year. Not to mention that the retail law that states a product must be on sale at the higher price for 30 days prior to any advertised reductions.
So I do understand your challenge to keep the offers different and of good value. to stimulate interest.
The bigger retailers like the one I worked for, started an everyday low price policy. No sales no gimmics just everyday low prices. “We gaurantee to be the cheapest for the equivilent product or service or the difference back” etc, etc. (in my case a futher 10% back).
This gave the customer buying confidence and a simple message that was easy to understand. “You don’t need to shop around because we are the best value.”
Of course it is not that easy with breakdown cover, as the policies can differ but you get the message.
Thanks again for the post
Mark