Economy
3 Big Hooks Businesses Use to Attract and Retain Customers
When you take a look around you, you’re always targeted by ads, offers and limited time discounts. They’re in print, on buildings, and everywhere you go online; but what are the most effective methods used by the most lucrative brands? And how can we expect them to evolve in the years ahead? Let’s take a closer look at 3 notable examples of popular techniques used to attract and retain customers.
Remove friction, increase sales
Netflix rose to the top of the streaming world in large part due to their willingness to offer 30-day free trials all over the world. The clever thing about this move is that they knew that after 30 days, you’ll be interested in many shows and desperate to continue watching.
There was, however, the frictional element of the first payment which needed to be removed if the funnel was going to work as intended. Setting up a payment plan along with all payment details is often a complex and time-consuming task. That’s why the Netflix team kept everything simple by taking payment details electronically as part of the registration process for the free trial. They then set the paid subscription to automatically begin after 30 days, while continuing to learn about the user’s likes and dislikes during that window.
By having an entire month of user data, Netflix was able to retain millions of customers by recommending shows they knew they would like. The fact that all a user had to do was simply continue watching meant that the transition to paid use was hardly noticed by them. Now that they have attained market dominance, Netflix has removed the free trial options.
Given Netflix’s unstable position, it’s possible that trials will officially become a thing of the past. Instead, there’s talking about a cheaper ad-supported version designed to steer people away from disruptive entrants like Disney+ or HBO Max.
Who doesn’t love free stuff?
No deposit bonuses that are offered by online casinos are another great example of schemes designed to attract new potential customers. By offering things like free spins, online casinos are attempting to entice players to start playing in their casinos. Because they don’t have to deposit money to activate the bonus, they will feel like it won’t hurt to try.
Casinos want players to get a taste of a particular game or the casino itself, and since the selection of products and services today is practically endless, one must try to sway the customer to their side and stand out. With savvy players always looking for new ways to have fun online, we can continue to expect a raft of new types of bonuses to keep flowing.
When points matter
The cost of living crisis and inflation in many markets means that household budgets are being stretched in a way they haven’t been for a long time. Supermarkets have come up with their own ingenious way of retaining customers. In-store offers and discounts have long been the norm in every type of store — not just supermarkets — so many shops needed something to stand out from the rest of the market.
Target’s loyalty program was the market leading initiative in this space. The company used an in-depth knowledge of each shopper’s habits to offer personalized discounts. This gave rise to store loyalty cards and points systems where the more a shopper bought, the more they would earn in loyalty points.
Nowadays, shoppers can redeem their points for discounts applied in store, extra products at the checkout, or sometimes even products and services from third parties. The idea here is to turn an everyday action (paying for clothes and groceries) into something which leads to a desirable reward, in addition to the products themselves. Stores are then able to produce greater brand buy-in, while customers feel valued and have an attachment to a particular chain, regardless of how similar the rest of the market is.
These types of offers are not likely to go away any time soon and are set to gather pace in the 12 months that lie ahead. Because of the unstable situation around the world right now, we can safely expect to see supermarkets double down on their offers and loyalty schemes in an effort to maintain their customer bases.
Now that you’ve heard our thoughts on some of the common methods for retaining customers, can you identify if you’re “guilty” of some of them?
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange extended its stay in the south for the fourth consecutive session after it shed 1.18 per cent on Friday, March 13.
The unlisted securities market recorded a loss despite closing without a price decliner, and ending with two price gainers led by Geo Fluids Plc, which gained 1o Kobo to sell at N3.10 per share compared with the previous day’s N3.00 per share. Industrial and General Insurance (IGI) Plc appreciated during the session by 2 Kobo to trade at 54 Kobo per unit versus Thursday’s closing price of 52 Kobo per unit.
When the market closed for the day, the market capitalisation lost N29.83 billion to close at N2.489 trillion compared with the N2.519 trillion it finished a day earlier, and the NASD Unlisted Security Index (NSI) crashed by 49.84 points to 4,160.46 points from 4,210.31 points.
Market activity improved yesterday, as the volume of transactions rose 179.5 per cent to 10.4 million units from 3.7 million units, but the value of trades declined by 68.4 per cent to N29.9 million from N95.0 million, while the number of deals weakened by 11.5 per cent to 46 deals from 52 deals.
Central Securities Clearing Systems (CSCS) Plc remained the most active stock by value on a year-to-date basis with 38.4 million units worth N2.4 billion, Okitipupa Plc followed with 6.4 million units traded at N1.1 billion, and FrieslandCampina Wamco Nigeria Plc transacted 6.3 million units for N584.3 million.
Resourcery Plc ended the trading session as the most traded stock by volume on a year-to-date basis with 1.1 billion units valued at N415.6 million, trailed by Geo-Fluids Plc with 130.8 million units valued at N504.5 million, and CSCS Plc with 38.4 million units worth N2.4 billion.
By Adedapo Adesanya
The Naira continued to claw back some gains against the Dollar in the different segments of the foreign exchange (FX) market, as its value was strengthened on Friday.
In the black market, it gained N10 against the United States Dollar yesterday to close at N1,400/$1 compared with the preceding day’s rate of N1,410/$1, and at the GTBank forex counter, it chalked up N6 to close at N1,385/$1, in contrast to the N1,391/$1 it was traded a day earlier.
Similarly, in the Nigerian Autonomous Foreign Exchange Market (NAFEX), it appreciated against the greenback during the session by N5.28 or 0.38 per cent to quote at N1,366.23/$1 versus Thursday’s closing price of N1,371.51/$1.
It also improved its value against the Pound Sterling in the official market on Friday by N21.81 to settle at N1,812.99/£1 compared with the previous day’s N1,834.80/£1, and gained N13.86 against the Euro to sell at N1,568.03/€1 versus N1,581.89/€1.
Pressure eased further on the FX market as the Central Bank of Nigeria (CBN) continued interventionist operations this week, selling Dollars to banks to boost liquidity after a $500 million boost last week.
This was complemented by inflows from foreign investors, exporters and non-bank corporates, among others, while Nigeria’s gross external reserves remained above $50 billion, the highest since 2009.
The Governor of the apex bank, Mr Yemi Cardoso, also eased fears of a Naira devaluation, saying the country’s financial system has been strengthened by reforms.
Regardless, external pressure looms as the US Dollar strengthened globally due to its war with Iran, now ongoing for three weeks.
Meanwhile, the cryptocurrency market was largely down as traders and investors continue to align with current realities.
The market is adapting to the conflict in real time. Early in the war, every headline produced an outsized reaction because nobody could price the tail risk. Now, traders have a framework where strikes happen, oil spikes and bitcoin dips only to recover again.
Cardano (ADA) depreciated by 3.8 per cent to $0.2623, Dogecoin (DOGE) lost 1.7 per cent to finish at $0.0948, Ripple (XRP) slumped 1.5 per cent to $1.39, Solana (SOL) dropped 1.4 per cent to sell for $87.33, Binance Coin (BNB) went down by 1.3 per cent to $653.58, Bitcoin (BTC) declined by 1.1 per cent to $70,670.63, and Ethereum (ETH) decreased by 0.9 per cent to $2,078.78.
However, TRON (TRX) appreciated by 1.7 per cent to $0.2941, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 apiece.
By Adedapo Adesanya
The price of the major crude oil grade, Brent crude oil, closed above $100 on Friday for the second consecutive session, as the Iran war heads toward its third week, with oil tanker traffic through the Strait of Hormuz still effectively at a standstill.
It gained 2.67 per cent or $2.68 during the trading day to close at $103.14 per barrel, while the US West Texas Intermediate (WTI) crude oil grade appreciated by 3.11 per cent or $2.98 to settle at $98.71 per barrel.
Brent futures were up about 10 per cent for the week following the 27 per cent rise seen last week, which marked the biggest weekly gain in oil prices since the COVID-19 pandemic in 2020. WTI futures, which saw their best week since 1983 last week, ended the week more than 8 per cent higher.
US President Donald Trump said American forces launched a major bombing raid on Iran’s strategic Kharg Island, targeting military facilities on the key Persian Gulf outpost while warning Iran that its vital oil infrastructure could be destroyed if shipping in the Strait of Hormuz is disrupted.
The terminal accounts for roughly 90 per cent of Iranian crude shipments, loading millions of barrels per day onto tankers bound largely for Asian markets.
The US and Israel’s strikes in the conflict have largely targeted Iranian military and nuclear infrastructure. Oil facilities elsewhere in Iran have been hit, but Kharg’s massive storage tanks, jetties, and pipelines had remained untouched until the latest strike.
Iran’s new supreme leader, Mojtaba Khamenei, vowed to keep fighting in a message delivered via state television.
There have been a number of attacks on foreign ships in or near the Strait, feeding into concerns that a prolonged war could translate to a global economic shock.
Prices are rising despite the US and its allies rolling out some measures to keep a lid on energy costs.
The International Energy Agency (IEA) has agreed to release 400 million stockpiled barrels, the largest such action in history.
The US has issued a 30-day waiver for India to purchase sanctioned oil from Russia. President Donald Trump is considering loosening rules under the Jones Act that require American ships to transport goods between domestic ports, including oil and gas, in an effort to lower costs.
Traders are continuing to monitor developments in the Middle East.
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