Brand Dots

Posts Tagged ‘product’

Understanding the consumer is more important now than ever. So why not focus on our most profitable patrons?

The classic 80/20 principle claims 20 percent of all customers generate 80 percent of the demand. For example, heavy users make more than 60 percent of fast-food visits, but they only account for one of five fast-food patrons. If we can understand what these super-consumers want and then offer it to them, it will be mutually beneficial.

Tap into Your Super-Consumers reinforces this philosophy. Some of the examples provided by author Eddie Yoon boast a 20% increase in sales and a migration to the top spot within the respective industry. If companies keep brand-loyal customers happy, they will continue to come back for more.

Research can help us make informed decisions. Interviews, focus groups, surveys, questionnaires, and observation can all be useful tools. However, knowing the right questions to ask is equally important. It’s important to ask your best customers what matters most to them.

Are your star patrons looking for additional features, distinctiveness, better quality, improved service? Most consumers will pay a premium for their ideal product. It’s up to us to give them what they want.

The dawn of social networks has undeniably created new opportunities for marketers. Consumers have an opportunity to share opinions about anything and everything they purchase. A reported 50 million Facebook users are currently sharing their thoughts about brands on a regular basis.

According to Reuters, earlier this year social networks, such as Twitter and Facebook, were struggling financially. They have been trying to find a way to capitalize on their massive and rapidly growing consumer base. Like most websites, advertising revenue seemed to be the most logical way to generate a profit.

This week, the NY Times reported that Facebook is now selling advertisements that display people’s profile photos next to commercial messages that are shown to their friends about the brands that they purchase or register an opinion about. Consumers that participate will have the opportunity to share their online purchases with their friends. For example, if you buy a new CD from iTunes, you can add it to your Facebook profile and let everyone know how you feel about the new album.

From a marketing perspective, this is the perfect marriage between understanding consumer behavior and advertising. Every profile contains demographic information about each consumer. This tool could shed light on who is really purchasing products and why they make the purchase decisions that they do – marketer’s dream!

But not so fast; the Federal Trade Commission sees the risk associated with protecting the privacy of consumers. So for now, Facebook has promised to keep these details to themselves.  Oh…to be a fly on the wall at Facebook.