Marketing
Strategy for a DVD Store
The high setup cost of a small dvd store, coupled with competition
from existing shops, make it difficult to survive the first
six months. This is when your market strategy can mean the
difference between success and failure.
Build
your client
base referrals with this marketing strategy
The idea is not to attract customers once,
but to have them return and refer others to your store.
It works great when you introduce it as part of your opening
special at a new location. It can, however, also save an
existing dvd store with a too small client base. Clients
receive an incentive to provide their contact information
as well as the contact information of three other persons.
The incentive can take the form of a voucher or 50% discount
to both the referrer and those clients that come in and
purchase or become members because of a referral. You only
need five initial customers to build a large client base
within six months. Let's have a look at the process with
an example of the dvd shop.
DVD retail store: referral system
First time customers at dvd stores normally
have to complete registration forms with their contact details,
identification numbers (South Africa) or social security
number (USA). They also have to provide contact details
of at least two other persons not staying with them. The
message is: "We don't trust you!" You create a
positive attitude towards your shop by turning this process
into a marketing tool.
How does it work?
The client comes in and completes the form to register as
a new customer. You provide an incentive for three references.
You advertise that for each one of the referrals that comes
in to register as a new customer and rent one dvd, you will
give the referring client one credit for the hiring of a
dvd from the latest releases. Each referred customer that
comes and register, will also be able to hire one movie
for free with the first rentals.
You use the contact information:
telephone number; mobile phone number; address and email
to check the references, but at the same time, inform them
that Mr. X has referred them and they have won a free movie
voucher. They can redeem it when they come in to register
or when they register on the Internet and make their first
rental.
If 5 customers each provide 3 references, your business
contact list will grow in the following manner:
5 x 3 = 15
15 x 3 = 45
45 x 3 = 135
135 x 3 = 405
405 x 3 = 1215
1215 x 3 = 3645
You now have 3645 referrals, but in total
have 5465 clients that you can contact via email, telephone
or SMS to market great specials, events and give-aways.
If only half of the referrals also register, you will still
have a large client base within a short period. Use technology
to take advantage of these referrals.
Place large posters inside and outside your
dvd store to advertise this. Don't keep it a secret! Make
use of the Internet, emails and SMS system to contact the
referrals and advertise it. You want them to return for
more! This is where your email newsletter and SMS system
comes in.
They receive a club card that entitles them
to one free movie for every ten movies rented and can continue
to provide referrals to receive even more free movies from
your dvd store. Email or SMS the clients every time you
get new stock. Make the latest movies half price for the
first week and advertise it in your email or SMS. They can
book the movie online via your website and pay with a credit
card or just have to rush in and make use of the special.
Competitions
You can also have regular movie review competitions
on all your stock. The person who rents out a movie can
write a review on it. This is placed on your website where
your users can read reviews and make informed decisions
on what movies to rent. You select the best movie review
each month and that customer gets four free movie tickets.
Have a weekly competition with three questions on movies
in the store. If they answer it correctly, their names go
into a box. You have a draw at the end of the month and
one person stands a chance to win a free movie rental.
Build Profiles
Another way to use technology to your advantage
as part of your marketing strategy is to let your customers
complete a profile form in store or online. It contains
their birthday dates as well as that of their spouse and
children. SMS or email a birthday greeting to them on with
an invitation to rent a movie for free. Most of them will
come in to rent more than the free movie. These are just
some tips on how to build a loyal customer base in a dvd
store. You can apply the same principles to other retail
outlets. Good luck!
Author: Isebell
Gauché
Copyright 2006©