Zachary Pecchia essay

  1. Describe how a business (including retail and service) can derive promotional and customer loyalty/retention benefit by utilizing a raffle in their marketing efforts.

Yesterday I flew home after spending quality time with my family over the Christmas season. I could not have asked for a better time. I was with family for 6 days so I was also excited to return home. The flight was good but when I landed the wait for my checked bag was unbearable. I was agitated, it was clear that my emotion was not a minority compared to the other passengers. Finally, the bags came out and I found mine and exited. This was my final interaction with the airport, and the first and final interactions are said to be the most lasting. I currently have a negative view of the flight experience. Which does not seem fair because I enjoyed every other part of the process. The flight was good, the security lines were short, the flight attendants were pleasant, but I had to wait for my bag which nullified anything good during the flight process.

While I was waiting I thought of a simple solution to make the process more enjoyable for everyone. Hold a raffle. “The 16th bag wins x amount of miles.” This would have changed everyone’s perspective on the whole experience.

To build customer loyalty/retention it is important to hear the customer. Customers typically voice opinions about something a business does excellent or horrible. If a business can understand the customer pain points and change that experience to become enjoyable it will create higher customer retention. Depending on the issue, this may be easier said than done.

There are obvious but costly solutions for many of these customer pain points. However, there are ways to implement customer benefits at a marginal cost to the business.

The initial example detailed a raffle at the baggage carousel after a flight. Another example for implementation is creating a raffle type winner for any type of queue. Queues are a major complaint for any type of retail business. An example could be, “every 100th transaction receives a free $5 gift card.” This can turn a long boring line into the exciting world of the unknown.

Another implementation could be to increase customer interaction with the business. A raffle could be drawn at the end of every month and the winner receives a $50 gift card. The names in the drawing are entered each time a customer has a transaction at the store, maximum once per day. This will create an urge for people to come to a business on the regular creating higher chances for impulse purchases.

The raffles can change a negative environment into a positive, fun, interactive environment for the customer. Research would have to be done to understand what raffle winnings would change the point of view of the customer from an annoyed state of mind to an excited state of mind. Once that level is met there is one less pain point for the customer. When there is less negative experiences, especially at the beginning and end of the customer business interface, there will be an increase in customer loyalty/retention.

 

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