How My Local Record Store Is Failing To Extracting MORE Money From Me
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classical rockI caught the vinyl record bug about several months ago.   And my pocketbook shows it.

I’ve probably spent about $5000 on records over the past 6 months.   From classical to rock to electronic.   I like all kinds of different music and decided to graduate from downloading songs from iTunes.

I probably go to my local record store to take a look at the new releases and used vinyl probably 2-3 times a week.  You never know what new release or deals you can get from people who turn in their record collection.

However, somehow, they are failing to extract more money from me in the following fashion:

 1)  They’re Not Sending Me A Physical Newsletter.

Sure, they’re posting new releases on a blog.  But for high-value customers like me who seem to spend more money than the usual patron, a physical newsletter would remind me of good deals, used records that have just arrived into the store, and the latest audio equipment.

 2)  They Don’t Have Me As Part Of A Continuity Program.

Continuity is gold in marketing.   Just as the electric company, your local cable company, and your cellphone provider.   There’s nothing like having income siphoning into your bank account on a regular basis.

They should have me in a special membership where they bill me, say, $100 or so every month.  And, in return, I’ll get 20% off the in-store price for that $100.

I buy about 4-5 records per month from that place anyway.  I would want to join so I can get the 20% off deal, and they get residual income every month they can count on.

There could be other benefits of the membership program.  I don’t go to a lot of their local concerts, but perhaps 20% off concert tickets.  There is one I’m mulling over attending this weekend, and getting 20% off the concert ticket might make me take action.

 3)  They Don’t Have Promotions That Make Me Want To Flock To The Store.

They do have something called “Record Store Day” twice a year, but that’s a national event amongst indie record stores across the country.  The only thing they have is something called “Vinyl Tuesday” where I get $5 off any used vinyl if I buy $25 worth of new vinyl.

Zzzzzzzzz.  Sorry, that’s not going to get me out of bed in the morning.

However, if they had a “Buy 2, Get One Free” deal, then I’ll be all over it.  Give me something cool or irresistible that’ll motivate me to get in my car and schlep downtown to the store!

 4)  They Don’t Recognize Their Top Customers.

With all the money I’ve spent at that place, it would be nice to get a phone call, a handwritten “thank you” card, or entrance into some VIP club that’ll motivate me to keep spending and doing business with them.

Now I know this blog post may seem like I’m “entitled” to special treatment because I frequent this particular record store a lot.

But the truth is this:  any business can benefit by segmenting their customers and treating their best customers like royalty.

They’re the ones that spend the most money with you, so it would behoove you to treat them differently than customers who only have bought from you once or twice.

Just a little more special treatment from this record store would make me think twice about ordering a record from Amazon if I could find it in this store…and, instead, asking the store to special order the record for me.

They better be glad they’re the only decent record store in Boise.  Otherwise, a competitor could easily come down and swoop me away.   And my hopeless and insatiable vinyl habit would be enabled elsewhere.

Conclusion

How are you treating your customers? Do you segment high-value customers from your run-of-the-mill “one-timers?” This is how you “fence in your herd” and prevent other competitors from swooping in…as Dan Kennedy calls it.

 

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