Recency within marketing refers to the time that passes in between consumer purchases. Marketers often utilize the "recency effect" to target advertisements and special offers directly to consumers who have recently made a purchase. By doing so, marketers hope to increase the chances of selling additional products or services to existing customers.
There are a few different ways that marketers can measure recency. One common method is through the use of purchase data. Marketers can track when each customer makes a purchase and then target advertisements accordingly. Another method is through the use of cookies. Cookies are small files that are placed on a consumer's computer when they visit a website. Cookies can track when a consumer last visited a site and can be used to send targeted advertisements.
The recency effect is often used in conjunction with other marketing strategies, such as frequency. By targeting consumers who are most likely to make a purchase, marketers can increase their chances of making a sale.
There are a few different factors that influence the recency effect. One is the amount of time that has passed since the last purchase. The longer it has been, the less likely a consumer is to make another purchase. Another factor is the type of product or service that was purchased. If a consumer buys a product that they will use on a daily basis, they are more likely to make another purchase sooner than if they had bought a product that they only use once in awhile.
Finally, the recency effect can be influenced by outside factors, such as seasonality. For example, consumers are more likely to buy winter clothing in the winter and summer clothing in the summer. By taking these factors into account, marketers can better target their advertising and special offers.
The recency effect is a powerful tool that marketers can use to increase sales. By understanding how recency works, marketers can more effectively target their advertising and special offers to consumers.
Fun Fact:
According to a study conducted by the Direct Marketing Association, "the recency effect is one of the most powerful drivers of response in direct marketing. On average, it accounts for 40% of total response." (Frye, 2011)