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Are you courting dealaholics?

On Wednesday, I asked whether your marketing was about transactions or relationships, and got some good reaction from readers interested in exploring this idea further. Coincidentally, JupiterResearch recently came out with a report on Dealaholics, those sharp-eyed bargain hunters with loyalty as deep as today’s lowest price. As you think about your online marketing tactics, you need to consider whether you are offering deals that create transactions but no loyalty. What kinds of offers are you making to attract new customers? Do you track the success, not of the offer, but of the relationship?


The Jupiter report notes that single-offer deal campaigns aren’t likely to engender long-term loyalty. Jupiter notes that the My Coke Rewards program, which provides value for long-term purchases is more what marketers should be shooting for.
If you think about it, the report makes intuitive sense. Customers seeking deals are likely to continue to do so—you’d think they’d be less likely to stick with your brand rather than seeking another deal the next time.
So, while sweepstakes or discounts might attract attention, and might push some product out the door, you should test to see whether the customers you attract are one-shot deals or long-term relationships. If your Web metrics are oriented only towards sales, perhaps you might want to identify customers so you can calculate lifetime value instead. Remember, not all customers are worth the acquisition costs.

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Mike Moran

Mike Moran is an expert in digital marketing, search technology, social media, text analytics, web personalization, and web metrics, who, as a Certified Speaking Professional, regularly makes speaking appearances. Mike’s previous appearances include keynote speaking appearances worldwide. Mike serves as a senior strategist for Converseon, an AI powered consumer intelligence technology and consulting firm. He is also a senior strategist for SoloSegment, a marketing automation software solutions and services firm. Mike also serves as a member of the Board of Directors of SEMPO. Mike spent 30 years at IBM, rising to Distinguished Engineer, an executive-level technical position. Mike held various roles in his IBM career, including eight years at IBM’s customer-facing website, ibm.com, most recently as the Manager of ibm.com Web Experience, where he led 65 information architects, web designers, webmasters, programmers, and technical architects around the world. Mike's newest book is Outside-In Marketing with world-renowned author James Mathewson. He is co-author of the best-selling Search Engine Marketing, Inc. (with fellow search marketing expert Bill Hunt), now in its Third Edition. Mike is also the author of the acclaimed internet marketing book, Do It Wrong Quickly: How the Web Changes the Old Marketing Rules, named one of best business books of 2007 by the Miami Herald. Mike founded and writes for Biznology® and writes regularly for other blogs. In addition to Mike’s broad technical background, he holds an Advanced Certificate in Market Management Practice from the Royal UK Charter Institute of Marketing and is a Visiting Lecturer at the University of Virginia’s Darden School of Business. He also teaches at Rutgers Business School. He is a Senior Fellow at the Society for New Communications Research. Mike worked at ibm.com from 1998 through 2006, pioneering IBM’s successful search marketing program. IBM’s website of over two million pages was a classic “big company” website that has traditionally been difficult to optimize for search marketing. Mike, working with Bill Hunt, developed a strategy for search engine marketing that works for any business, large or small. Moran and Hunt spearheaded IBM’s content improvement that has resulted in dramatic gains in traffic from Google and other internet portals.

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