Bank Promotion Disregards Existing Customers
Writing on his weblog, "Wouldn't that be ironic? A promotion intended to bring in new customers, actually causes customers to leave," Jodster describes a TD Canada Trust "EasySwitch" promotion that rewards new customers with a free iPod Shuffle. Jodster points out this promotion, like many others, penalizes those who are already customers because they are ineligible for the prize. While these customer base expansion campaigns are common, at times, they can be interpreted as discounting, for no good reason, a person who has been a loyal customer for a long time. Perhaps, marketers in situations like this should consider creating an equally compelling offer for existing customers so they won't leap to the the next best offer that pops up.