Continuity marketing

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Continuity marketing is a method of providing goods or services to consumers that relies on direct marketing and continues into perpetuity. Also known as auto-replenishment, this relationship continues until the customer decides to end it by notifying the marketer.

[edit] Overview

The general concept is that a customer places an original order, typically through a mail order offer or online. This original offering is usually heavily discounted and acts as a loss leader. Within a prescribed period of time, a subsequent shipment will be delivered to the customer. Thereafter, additional shipments will continue to be sent at regular intervals. If the customer has not indicated which specific product they wish to receive, then the marketer will choose on the customer's behalf based on that customer's previous choices. This continues until the costumer notifies the supplier of their choices or their desire to discontinue the service.

This has been a primary distribution method for well known bookclubs such as Doubleday and Harlequin and music clubs such as Columbia House. International Masters Publisher has distributed millions of recipe cards internationally in this fashion.

Unlike the questionable marketing practices of some companies, modern successful marketers use very clear and deliberate language, repeated several times and located prominantly to explain their program. Yet, many customers fail to understand the continuous nature of the offer. While excited to receive the deep original discount or free sample, the opportunity to review the terms and conditions is often missed. When the next shipment arrives with an invoice, these consumers become agited and resentful. This avoidable experience unfortunately results in incredible waste of resources, including customer service calls, returns and lost goodwill.