*****MusicCard***Definition and Marketing*****
I thought with the addition of new investors and the volume of potential investors a recap of the MusicCard and it's importance to the marketing plan of TSIG would be appropriate. For most of the old timers this might be boring.
First the MusicCard is a marketing tool for CCI to capture and hold customers. Once the purchase of the MusicCard is made by the customer, he then feels obligated to utilize the CD purchasing units allowed by the Card as long as product and service is provided.
Let it be understood, as will be further explained, it was not necessary to obtain this customer through purchased print, voice, or visual advertising. Notice the advertising expense line item of the competition. CCI does not have to offer advertising to a card carrying customer for repeat business. As long as he gets product and service he will remain with CCI. The reload - purchase of a new MusicCard after using up the first - percentages are quite high (approx 75%).
I know the question then comes up as to how customers are obtained if there is little need for purchased advertising. The marketing plan was simple. How do we have others obtain customers for CCI? The answer was simple. Why not split the profits.
For charitable organizations it works quite well. If CCI splits the Card cost, they get $5, we get $5 and a customer. The charity or fund raiser then goes all out to spread the word about CCI and place as many MusicCards as possible. CCI also gets the CD sales from the new customer and the reloads and word of mouth Card purchases and Gift MusicCard sales.
This is one example and by puting thought to it there can be numerous applications for MusicCard sale generation. The PromoCard is also an exciting application and will be discussed separately.
The great thing about the MusicCard concept is CCI gets the Card sale revenue up front and then waits for the CD purchases to come. With the highly competitive pricing of CCI's CDs, the customer quickly becomes a CD buyer. With outstanding purchasing credits on his Card, he then has no reluctance to returning to CCI for additional purchases.
As can be determined from this brief explanation of the MusicCard concept, CCI is not primarily a CD sales company. It is a Card sales company. The CDs sales come as a byproduct of the Card sales.
By puting both together it can be determined the profit generation of one customer to be at least $25 if through a $5 discount MusicCard. Each CD generates on the average of at least $1. That would make 1,000,000 customers worth at least $25,000,000 and without discounts over $30,000,000.
Bob
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