New services to attract new users

I am in the process or writing my 5th book, "Grow the Core". Sucker for punishment. This one is a bit easier to write though, as it will be a shorter eBook, as part of a new digital business insight website called "Shoulders of Giants".

As the name of the book suggests, this one is all about how to grow your business by selling more of what made you famous, rather than trying to stretch into new markets. And as I was looking for good cases of core brand growth, I was reminded of More>Than's Drivetime insurance product.

Drivetime is a great example of launching a new 'version' of the core product, in this case insurance, to target a specific user group. Its a welcome and worthy bit of innovation in a market that has tended to be price-driven.

Drivetime offers drivers aged 18-25 a 40% discount if they agree not to drive between 11pm and 6am. This time-slot is when most accidents involving young drivers happen. The driving is tracked using a GPS system that is fitted for free. Clever, eh? More>Than can offer cheaper insurance, because they know there will be less claims to pay out on. Young drivers get cheaper insurance. And society as a whole benefits from fewer accidents.

So, a good example of identifying a consumer group, understanding their needs, and then how to create and market a product for them that make money for you.

Comments

[Vanesa]

Properly designed innvitcee and loyalty programs tap into keen human nature to get something for nothing. But unlike a discount or cash back offer, loyalty programs also add the element of recognition. It seems petty perhaps, but consumer crave the need for the shop owner to recognize acknowledge the effort the customer have done in spending money in your store, hotel, airline.This yet is not enough to make a good successful program, it also requires that you:1- Offer a value system (points most generally), that can translate into tangible and financially valuable goods. A free buffet dinner for the poor person who just lost $500 on slot machines. Should the conversion of points to $ be hard and the program will fail.2- Accessible tiers: Each step in the loyalty program ladder have to have a reachable path. Should the perceived path be too great, your customers will not even try to get on the first step of your loyalty program ladder.3- Soft recognition: Using a first name in an email, having dedicated services to the smallest of members, no matter how small will go a very long way in influencing and retaining customers in the program. It will avoid the Yes but he is rich and important reaction. This reaction happens when people perceive that recognition is only give to those with money and notoriety and not the standard joe such as himself.When the three conditions are met and the programs retains customers it will allow you to:A- Significantly improve your CRM customer information.B- Target specific offers to very specific customer = improving conversion on your marketing activitiesC- Develop word of mouth and viral components to your marketing, allowing acquisition of new customers for free, (well almost)D- Increase average sales value of carts / transactionsE- Easily up sell productsF- Increase conversion if your personalization methods are effectiveG- Help tip the scale, in the acquisition of new customersH- Increase spontaneous purchases.

[David]

That's very interesting, Angie. A poll of 4,000 fans sulhod give a decent representation of their spending habits and if, on average, they spend over $70 more on the brands they've liked , this certainly does show the influence that social media is having.This will continue to grow, as people believe their friends' and peers' opinions much more than corporate advertising slogans that try to encourage them to spend on their brand.