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Old 17th August 2007, 02:21 AM   #13
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Join Date: Aug 2005
Location: here
Posts: 29

1. You lose money on your regulars - they already know about your store and all they do is get a discount.
If you word the ad so that it applies to new customers only then this loss is negated.
2. You need to attract a whole bunch of new customers every month to pay for the cost of marketing and the loss you incur with respect to your regulars. In my liquor store I get about 10 new people in a month may be and they do not buy enough to pay for the $250+ Register tape/network charge and the regulars who bring it.
Again, it's not for all businesses. Any business looking to utilize this type of advertising needs to really evaluate it's worth to them and their target audience. Our business was perfect as we built a specific customer base and those customers were tracked, an option not readily available for a liquor store. However a local PC service would most likely have and maintain a customer database, especially for consultation to track service and history, so it could very well be useful for them.

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