The 5 E's Part Six - Extend Examples
This is part of a series on 5 E’s of Customer Journey. Let's look at the last/first step of the journey - Extend:
I bought some ties from The Tie Bar in 2013, they’re a great company and I’ve had a good experience. Why they send me 1-2 emails a week about ties is beyond me, although I will be using them again later this year as a groomsman, so maybe it worked?
Going to the dentist probably isn’t your priority, so clever clinics send out 6-12 monthly reminders to give you a nudge towards booking another checkup.
Streaming services like Stan send you content updates even after you’ve unsubscribed. I think it’s a good way to re-entice customers, by showing them what new shows and movies are available for them if they reactivate their account.
Apple send customers a fair few emails. I don’t understand their approach, as their stuff is never on sale, and their product news is better shared via TV or web ads, not direct email. Their after-sales service is fantastic, they are great to deal with even if you drop your iPhone in the toilet (wasn’t me), offering you a replacement phone for ~$250. That’s the kind of thing that instills loyalty.
Le Creuset claim to have an issue; their cast-iron pots last forever so they don’t get much repeat business. Instead, they’re relying on positive word of mouth from happy customers to attract new ones, a great Entice strategy.
The opposite of this is also true, it’s called Planned Obsolescence. If you ever want to sound like a nutbag at a dinner party, tell people your theory about how your technology “just happened to break a week after the warranty ran out”, although you’re technically correct. Some companies will deliberately weaken their products to ensure a repeat purchase, but this might not help their reputation.
I attended a Business Modelling Masterclass with Strategyzer in 2013; they recently sent their alumni an email offering a “refresher workshop” at a discounted rate. It makes a lot of sense, looking for repeat business from customers who have already had a good experience.
IKEA offer After Sales Service for those who are overwhelmed by the prospect of assembling their new purchase. For a fee, they will send over 1-2 people to build your new bed/couch/shelves. For most Aussie men, this is also known as “Admitting Defeat”.
Stores like Myer will have “VIP events” for customers on their mailing list, a Thursday night when they offer an extra 10-20% off.
Some brands will go for “Share of Wallet” extension: once they have you onboard for one product, it’s easy to get you to switch to their version of another product. Commonwealth Bank do this, they run Dollarmite savings accounts for children so that they choose Commonwealth for a debit card, then a credit card, then a car loan, then a mortgage. When I was at ANZ someone suggested that they do the same, but the senior managers mentioned that it’s not effective in reality.
Qantas and Expedia push for similar extensions, once you’ve booked a flight, why not a hotel, or a rental car?
Long lasting products may require repair. Brands like RM Williams often have customers come back to have their boots re-soled. There’s money in this, one friend recently paid $220 to have his (originally $495) boots repaired. This enables the company to get more than one transaction for each product, and by creating another good customer experience they reinforce their reputation.
Beaurepairs send customers texts about specials on new tyres. Why they think this is a spontaneous purchase is beyond me.
Hoyts Rewards is structured so that you pay your $10 to sign up, then get a free ticket on your next visit, thus incentivizing you to come back. The aim is to build a habit of choosing Hoyts over Village, even when they screen the exact same movies.
Coles use their FlyBuys program as a way of prompting an Extension, enticing you back with the lure of more and more points, which eventually become useful.
Book Depository will offer customers incentives if they don’t buy something for a while. If you put books in your cart, then leave, you’ll soon receive a promo code for 5% off. If you leave it longer, you may even get 10% off.
Travel Insurance companies I have previously used will send me prompts at the times of the year I have previously travelled, which aren’t peak times. It hasn’t worked for them yet, but it’s a good idea.
Up next, the final part in this series: Now What?