Question

Topic: Customer Behavior

Global, But Niche, Web-based Fashion Company

Posted by Anonymous on 5/7/2007 at 9:26 PM ET 500 Points
I have a client who is just about to launch a web-based fashion company. The target audience is women 18-35. The client is choosing to start small (slow and steady) to ensure the systems they have in place are robust enough to sustain the demand.

One of the things they are investigating is creating a referral system. As they are web-based and are expecting customers from around the world, what sort of incentives do you think would be most appropriate for encouraging new customers to purchase and for existing customers to refer friends and family?

The next question I have is around retaining existing customers. Do you think that sending them a discount voucher on their birthday is appropriate and will create loyalty? How about emailing them a week before new product lines are released so they have the option to purchase for the general public?

Any thoughts and suggestions on the above would be greatly appreciated.

R
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RESPONSES

  • Posted on 5/8/2007 at 12:24 PM Accepted
    HI,
    Free product is the best incentive for them from you. Afterall, they bought from you, they must like it. Collect so many 'fashion dollars' buys you something from the store. Easy to incorporate in an affiliate system, since you are simply referring to cash as your 'fashion bucks', you wouldn't have to modify the affiliate tracking software much.

    Secondly, its cheaper for you since you are crediting them on retail items with all the markup in.

    Discount voucher:
    No, I'm not too big on that sort of thing, but that may be more personal. Can't you give them something free...perhaps something that would be a great accessory if they purchase some other item from your store? FREE always beats discount anyday :)
  • Posted on 5/9/2007 at 1:13 AM Accepted
    Frankly for womyn- if the cuts are good, & fits well, you will get enough WOM. So concentrate on getting the basics of color, print, size etc right.
    There are daily e-newsletters in most cities which profile hip & happening stuff. Try and get your website covered in those email newsletters.
    Have a replacement policy in case of ill fits.
    Referrals will happen, but the chances that you will get back the same customer asking for more is higher. So, pass on a 2nd item discount which she can use herself or pass on to a referral.

    Discount Voucher- Shd be done in conjunction with referrals.
    Price correctly and you wont need discount vouchers.
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