| Friday, 21 August 2009 - 29 Shaban 1430 H |
Friday, August 21, 2009
Wednesday, August 12, 2009
Your Best Customer Is Not a 'Woman With Children Under the Age of 4'
| Josh Bernoff | |
Do you know their names?
Here's a conversation I often have with marketers:
Josh: Who are your best customers?
Marketer: Women with a child under 4. [Or "People with assets of at least $1 million." Or some such.]
Josh: No, I really mean "Who are your best customers?" What are their names?
Marketer: [No response.]
If you're seeking word of mouth, you should know who your best customers are -- by name. You should be feeding them previews of new products, asking their opinion of features you're considering, and finding out how they think to build marketing copy. You should get testimonials from them. And you should provide places where can submit their own opinions, and others can see it -- ratings and reviews, Facebook pages, community forums or whatever it takes.
Now, consider this. Some of your best customers are those who had a problem... but you reached out and found them and fixed it. There is nothing more enthusiastic than a friend who used to hate you.
Are you reaching out like this? @comcastcares is.
Or do you still think about customers by the thousands and not individually?
What if you could reach out to them individually, but do it efficiently? I ought to write a book about that.
Tuesday, July 21, 2009
Harvard's John Quelch: How to Market Luxury in a Downturn
Two types of luxury consumers
I divide the luxury market into “must-haves” and “wannabes.” Members of the first group have incorporated luxury into their lives and seek to retain that lifestyle in the face of recession. Very high net worth individuals occupy the top rung of the must-haves. They are largely inoculated from the downturn. Even if they’ve lost a lot of money in the recession, they are still ultrarich. On the other hand, those must-haves who have become financially strapped are now buying luxury items at lower price points or buying them less often, but never compromising on quality.
The luxury wannabes view luxury aspirationally, occasionally investing in luxury purchases in order to touch luxury without immersing themselves in it. They would never buy (or probably would never be able to buy) a Ralph Lauren suit. But they can afford a few lower-cost accessories such as a polo shirt with the logo.
Hold on to these customers in this economy?
You have to figure out how your customers’ behavior has shifted. Can you enable your more price-sensitive customers to continue to patronize you? It’s a balancing act, because you don’t want to taint the image of the brand.
This is more challenging at a time when cash-strapped companies are reducing spending on market research that could help them learn just how to reach those customers. Most large companies in the U.S. are cutting their research budgets by 10 percent to 20 percent. To adjust to this shift, I urge marketers to focus their research on the products, brand, and markets that are key to their strategy. Don’t waste resources on peripheral or potential consumers.
Discounting? is that always a bad idea for luxury brands?
“Simplifier.”a new kind of consumer
Simplifiers predated the recession, but the recession has accelerated the trend. These are people who trade down to a simpler lifestyle than they are able to afford. In particular, they seek to reduce the scope and scale of the stuff they own, because they simply find it too aggravating to maintain and less emotionally satisfying than they expected. Often, as they grow older, they place more value on — and invest more money in — experiences instead of possessions.
Savvy marketers will keep this new Simplifier in mind when creating an argument for their product or service.