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Issue 10: Membership Clubs-Beneficial or Clubbing Your Customers? )
 The Perennial Quick Buck August 2002 
in this issue
Dear Reader,

In the usual quest for the quick buck and direct marketing, the membership club was born. In the beginning, easy and immediate money lured marketers to use this tool in their offers with little or absolutely no regard as to its effect on their customers.

After all, a direct response commercial winds up on someone's television set or radio uninvited in the first place! But through the persuasive powers of the advertiser and striking the right "hot buttons" in the viewer/listener a miracle takes place-IMPULSE BUYING! The viewer/listener picks up the phone, sends in a check, or goes on line and buys your product NOW!

Protect Your Greatest Treasure

If that isn't enough, the marketer then subjects his new customer to a "read" at the end of the original offer. The "read" is a free membership in a club that will shower the customer with wonderful benefits and products that they may or may not need. Wasn't it enough that the marketer got the person to purchase his product-uninvited? Now, the customers has more offers and products heaped upon them.

The results of this added benefit to the marketer (more money in his pocket) maybe harmful to his greatest treasure-customer relations. One of the obvious and current recommendations being given by the larger telemarketing firms today is "companies should make sure that the right offers are paired up with the right customer, instead of just offering the caller a generic club." I suppose it will take a club to knock sense into marketers to follow this simple advice?

Dangerous Pathways
These clubs have gotten into legal hot water and so have the marketing companies that have promoted them, especially in the area of poor customer relations. There have been numerous customer complaints getting the attention of state's attorney generals and the FTC.

Rules have been enacted and are being enforced which could further reduce club membership, increase the time it takes to make these sales, and increase marketers costs in providing club offers to their customers. In the near future, the costs of offering clubs could very well outweigh the benefits of using them.

Grab Your Financial Destiny By The Horns
As a marketer, you could create your own club with products and services that enhance why the customer bought from you in the first place! Establish a clear, beneficial, and easily understood procedure, so your customer can receive valuable products and services from you now and in the future. Create a way for your customer to respond to you, to add more products or cancel orders as your customer sees fit. But YOU manage this process, YOU protect the interests of your customers, protect their information and tell them you are doing so.

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The Good News!
The phenomena of clubs and memberships have proven there is acceptance for this service in the marketplace- It use to represent up to 30% of all callers responding to offers! Instead of grabbing a few coins and letting someone else manage this business-create your line of future products/services and build a treasure of happy well-served customers. They will shower you with thousands of coins month-after-month and year-after- year.

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