Chapter 9 covers personalization and includes a section on switching costs, which are an important source of customer loyalty and competitive advantage. As a marketing manager, what internet personalization steps could you take to build switching costs into the following products and thereby keep customers longer? (Hint: discounts, coupons and buy one get one deals are great ways to acquire customers but are less effective at building customer loyalty. Think about switching costs as something built into the product or service. And in this case, think about personalization features built into the product or service that create switching costs.)
- Broadband Internet service
- Subscription to a cooking magazine
- Shaving gel
- Broadband Internet Service: As the marketing manager, I would offer consumers the ability to package the internet service with television or phone services. Additionally, I would have a referral bonus program. To additionally involve the consumer with the brand, I would provide the consumer with an app or apps to control service, bill pay and other services at the touch of a button.
- Subscription To A Cooking Magazine: As the marketing manager, I would offer a discount rate to subscriptions of the magazine. I would also offer free cookbooks or other publications. To additionally involve the consumer with the brand, I would offer a free trial to an iPad version of the magazine or access to our premium site.
- Shaving Gel: As the marketing manager, I would offer free samples to draw the consumer into the product. I would also offer discount coupons to draw them in further to the brand and other products we offer. To additionally involve the consumer with the brand, I would offer a reward program to earn prizes and maintain product loyalty.
Please review the following clip regarding brand switching in a recession:
Marketers, tell me, what are your thoughts regarding this?
Professor Question Response:
Personally, my family has made quite a few brand changes during this current recession, we have switched from many name brand products to the store brand from cleansers, toiletries, and food items to name a few. It’s is highly unlike we will switch back to the name brand if/when the economy returns because we have grown accustomed to the sometimes lower quality, but appreciate the savings we have made.