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Not necessarily, a corporation always is looking for ways to grow its profits, preferably through easier methods, rather than more difficult methods. That does
by PakG1 16y ago
Not necessarily, a corporation always is looking for ways to grow its profits, preferably through easier methods, rather than more difficult methods. That doesn't mean they're necessarily hurting in other revenue streams.
I met someone who once worked for Proctor & Gamble in marketing. He told a story of how they had a goal to increase a certain fabric softener's revenue by a million dollars in 1 year for a certain market. They looked at the stats and discovered that a certain percentage of customers always came back to purchase due to brand loyalty.
Then they did some more research and redesigned the fabric softener bottle's cap and spout. You normally pour the fabric softener into the cap, and then into the laundry machine, right? So they made 2 changes. First, they made the cap a touch wider and the line a bit higher. This way, customers thought they strangely weren't putting in as much fabric softener as normal, so they would pour in more. Second, they made the spout easy to overdose fabric softener accidentally. In market tests, customer test groups said that the spout made it so much easier to pour. So they released the product and marketed it as having the new easy-pour spout. It guaranteed faster usage, and therefore faster repurchase rates from loyal customers. Bam. They made their numbers and increased the stock price that little bit more.
- pavel_lishin 16y agoRaising the ATM fees seems like a terrible way to raise money, from a marketing perspective. The softener example made customers happier with their selected brand; this seems like it would anger customers. As another anecdote, last night I almost didn't withdraw cash because the fee was $2, instead of $1.50. If it were $5, I definitely would have walked the two and a half blocks to my "home" ATM.