• HOME
  • Categories
    • Marketing
    • Strategy
    • Advertising
    • Sales & Selling
    • Branding
    • Business
    • Customer Management
    • Market Research
  • Brand Analysis
    • Marketing mix of all Brands
    • SWOT analysis of Brands
    • Marketing Strategy of Brands
    • Brand Competition
    • Print Ads Collection
  • Start Here
Marketing91
  • Skip to primary navigation
  • Skip to content
  • Skip to primary sidebar
  • HOME
  • Categories
    • Marketing
    • Strategy
    • Advertising
    • Sales & Selling
    • Branding
    • Business
    • Customer Management
    • Market Research
  • Brand Analysis
    • Marketing mix of all Brands
    • SWOT analysis of Brands
    • Marketing Strategy of Brands
    • Brand Competition
    • Print Ads Collection
  • Start Here
Home » MARKETING BASICS » What is Frequency Marketing and Definition of Frequency marketing

What is Frequency Marketing and Definition of Frequency marketing

December 30, 2017 By Hitesh Bhasin Tagged With: MARKETING BASICS

Frequency Marketing is Marketing which involves rewarding customers for the volume or frequency of their purchases in order to enhance customer profitability.

Frequency marketing emphasizes the development and implementation of marketing strategies and tactics aimed at increasing the frequency of customer purchases, visits, orders, and the like in an effort to maximize the profit contributions of customers.Frequency marketing

Frequency marketing can therefore involve a process of identifying ‘best,’ or most valuable customers, recognizing that the Pareto principle may apply to customer profitability (where, for example, 80% of the firm’s profits may be attributed to 20% of the firm’s customers). The practice of frequency marketing by many firms is typically through formal loyalty programs, which aim to encourage repeat purchase and increase customer retention.

Marketers concerned with increasing repeat purchases by customers valued by the firm may benefit from a greater understanding of the benefits, costs, and limitations associated with the practice of frequency marketing. For example, marketers should recognize that, while customers may increase their purchase frequency in response to a marketer’s frequency program and ultimately become habitual or steadfast buyers, it is also possible that customer loyalty may be short-lived among other customers, particularly if the frequency marketing programs of competitors become relatively more attractive to such customers.

The best way to apply this marketing strategy to your firm is to offer customers a discount or to offer them a freebie because of their repeated purchase. Off course, for this you need as good a CRM as you can get so that you can track the repeat purchases by customers.

Many retail chains as well as the “frequent air flyer miles” program is a part of frequency marketing. The cost of carrying out frequency marketing will always be lesser then the cost of customer acquisition. Hence, if you are spending 10% on customer acquisition, you should spend at least 5% on customer retention. And thus, you can award your customers on frequency, and retain more and more customers.

Also read – Strategies for Customer retention | Cost of lost customers | Customer defection rate

Related Post

Customer Concept
Forgetting Curve
Celebrity Marketing
What is a brand
Baumol’s Cost Disease
Characteristics of Business Market
Adaptation level theory
Organizational Buying Process
Mass Market – Definition of Mass market and ...
Product Sampling methods
Bounded Rationality in organization decision makin...
Advertising theory

Most Useful Links

1. 30 Marketing and Strategy Models
2. Marketing Strategy
3. Marketing tools
4. Branding Tutorials
5. SWOT of Brands
6. Marketing Tutorials
7. Management Articles
8. Lists & How to
9. Sales & Selling

GET DAILY MARKETING UPDATES!!

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

Follow Marketing91

More than 30,000 Followers

Get Daily Marketing updates!!

Recent Posts

  • 10 Ways To Ask Customer For Feedback
  • How To Ask For A Meeting? 10 Ways To Ask For A Meeting
  • How To Ask For Internship? 10 Tips to Ask for an Internship
  • How To Ask Questions In An Interview? Tips on Interview Questions
  • How To Ask Someone To Be Your Mentor?
  • Top Social Media Statistics for 2018
  • How To Ask Good Questions and Smart Questions?
  • How Ask For A Raise When You Are Underpaid? Tips on Asking for a Raise
  • How To Ask For An Interview? 10 Tips to Ask for an Interview
  • How To Ask For Your Job Back? Tips to Ask for Your Job Back

Best of Marketing91

Start Here – Marketing tutorials
30 Marketing Strategy Models
Marketing Strategy tutorials
Sales Management tutorials
Branding tutorials
Market research tutorials
Online Marketing tutorials
Business tutorials
Customer Management Tutorials
Brand Competitors
Strategy of Brands
SWOT analysis of brands
Marketing mix of brands

Copyright © 2019 Marketing91 · ABOUT US · PRIVACY POLICY  · COOKIES POLICY  · CONTACT US  ·