So here was some breakfast discussion from my house this morning…. why do companies waste money marketing to existing customers who already have these services? The form of marketing I'm referring to is our cable company sending a generic “sign up for our cable services” ad, with them ignoring (or being ignorant of) the fact that we are already customers.
I can imagine doing marketing for “upselling” existing customers, such as “you already have cable, how about adding HBO or HDTV services?” But, this was a generic ad “targeted” for non-customers.
How hard can it be to merge your existing customer database with your marketing database? As a customer, I'd rather have the cable company spend money on improved service reliability or improved customer service training for phone reps.
I did a quick web search and found this article, which refers to types of marketing waste and even references lean manufacturing. The types of waste don't match exactly to the typical Toyota “7 Types of Waste,” but the thought it similar.
I'd categorize my cable company's mailing as “overprocessing.”
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