State of the Industry: Kelly Passey
By: Kelly Passey, EVP Incentive & Loyalty Services – Access Development
August 11
Managing the Economy with “The Five ‘P’s”: Why Loyalty Companies Need a Taste of Their Own Medicine
As loyalty marketers we understand better than almost anyone else that the bird in the hand is worth two in the bush. We are, after all, the ones that help our clients increase the value and longevity of their customers through long-term engagement.
Yet how many of us, in our own quest for profitability, continue to “beat the bushes” day in and day out in the hunt for new birds, while neglecting the profit potential already in hand? In an economy such as this, the bush-beating simply gets more frantic and less fruitful.
It’s never been a better time to start taking our own advice and focus on the profit potential of the bird in the hand.
As marketers in the quest for new customers, we have successfully applied for decades the Four ‘P’s: product, price, promotion and place (distribution). It is our secret formula—the magic and science of marketing. We continually adjust this marketing mix, diligently focusing in on specific ‘P’s—testing, controlling and measuring what makes the needle move for our key indicators. We scrutinize graphs on foot traffic, new customers, basket size, etc. and readjust the mix accordingly. If we skillfully apply the Four ‘P’s—new customers appear. That’s the way it’s always been.
An excellent example of the Four ‘P’s in action is the industry conference. Having faithfully paid homage for years as an attendee, exhibitor and speaker at loyalty industry forums, I’ve watched the noble tradition unfold year after year. Venues are carefully selected to precision-target potential attendees, speakers and presenters we’d like to spend time with. Booths are set up. Exhibitors sharpen their pitch. We all come bearing what we hope is the perfect marketing mix, complete with an eye-catching booth to attract wandering prospects as they walk down the aisle. Then, we go home with new customers. That’s the way it’s always been.
The principles worked perfectly . . . until they didn’t.
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THE PULSE
As the economy rebounds, which factor do you think is the most important driver of employee engagement?