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Erewhon uses glass jars with a $3 return incentive to lock in repeat visits and higher spending. The deposit works like telecom contracts: friction that keeps customers coming back.
Erewhon uses glass jars with a $3 return incentive to lock in repeat visits and higher spending. The deposit works like telecom contracts: friction that keeps customers coming back.
So guys, as you can see, I have a bunch of Erewhon jars in front of me. Now, here's the genius of Erewhon. What Erewhon is doing here is they could go with plastic jars, but it's smart 'cause they know, in California at least, if they give you a glass jar, they can incentivize you. They say, hey, if you return it to us, we'll give you $3. But returning it means I need to go back into the store. So today, Neil and I, we're going to Erewhon at lunch. I brought 10 of these jars with me. Guess what? I'm probably gonna buy a lot more stuff than just lunch and probably not gonna just return this, right? But the point is, Erewhon's marketing strategy here is smart because it's a retention mechanism. It gets you to come back, right? They know that their average order value is a lot higher than other people. So what's a way to get people to come back? It's just like how if you work in telecoms, it's the government mandates that you can't just churn and cancel in a dashboard online, right? You actually have to call. So sometimes you take advantage of what mandates are from the government and that's how you end up making more money. 'Cause again, they could just go with convenience and go with plastic containers, but they chose to go with the glass.
