1. Learning objectives Learning outcomes
To understand the difference between product trial and repeat purchase.
Understand how to maximise repeat purchases through customer loyalty
Learning outcomes
To explain the different ways businesses encourage customers to trial their products and give examples
To explain how customer loyalty can lead to repeat purchase

3. Business strategies to encourage
Advertising
Free publicity
Free samples
Business strategies to encourage
product trial
User testing
Targeting trade buyers
Low trial prices

4. WATCH VIDEO PRODUCT TRIAL AND REPEAT PURCHASE – TAKE NOTES

5. List examples of different businesses you know and how they encourage product trial

6. Group activity Thought shower: How might Ford and Marks & Spencer get
customers to trial their products?
Note responses
and feedback

7. Here are some ways to product trial :
Free tastings in supermarkets or where your products are sold.
Buy a product and get a trail size of something else for free
Refer a friend for a free trial
Network with other businesses in your target market e.g. get them to hand out something of yours that relates to their product, like free massage oil at the day spa.
Make up packs of trial size products for donations to charities or prize donations for community raffles etc.
Free samples eg shampoo in magazines or newspapers
Trying out a product is the very best way to see if it fits with personal tastes, lifestyle, and attitudes.

8. But what can a business do to ensure customers keep coming back?

9. The Loyalty Effect, Frederick F. Reichheld
“ The probability of selling something to a prospective customer is only about 5-20%, while the probability of selling something to an existing customer is 60-70%.” Marketing Metrics
“ The ‘80/20 rule’ was observed across retail industries and suggests that almost 82 percent of profits are generated by 20 percent of the firm’s customers.” Zeithaml Survey
“ It costs at least five times more to acquire a new customer as it does to retain an existing client.”
The Loyalty Effect, Frederick F. Reichheld
“ Retailers who take meaningful steps to drive consumer loyalty are 88% more profitable than their competitors who do not.”
Deloitte research study – “Serving the Networked Consumer”

11. Business strategies to encouraging Repeat purchases
Changing the price of products can increase sales eg special offers. But not if business wants to retain image of prestige
Continue to use above and below the line methods of promotion
Price
Promotion
Business strategies to encouraging
Repeat purchases
Product
Place
Ensure available in the right place at the right time
Updating products, extension strategies

13. PRODUCT TRIAL AND REPEAT PURCHASES CASE STUDY – EXAM STYLE QUESTIONS
Paired task: read the case study and in pairs, discuss the questions and make notes. Consider how you might answer the questions (look at the marks awarded). What skills are you being asked to demonstrate?
Individual task: write up your answers to each question in your exercise book.
TO BE COLLECTED IN FOR ASSESSMENT

14. Write a Tweet in their books summarising what you have learnt today
Plenary
Write a Tweet in their books summarising what you have learnt today