How To Modify Your Advertising Depending On The Customers Usage Level And Loyalty

The next time you are writing an advertisement, or an article, or updating your website, choose your audience along the following grid of “usage” vs “loyalty”.

Choose just one and ask yourself “how can I modify my message to speak just to them?”.

Usage vs Loyalty: Where Are The Opportunities For Your Business?

Let’s look at each sector in more detail:

1. High/Med/Low User + High Loyalty To You = Your Best Customers

  • This is where you are making all your profit.
  • What else can you do today to keep them fiercely loyal? 2 ideas:
    • Keep adding value, keep improving
    • and keep putting your prices up (the best way to maintain or grow your profitability and signal to them that you are working hard to improve the value of your products and services)
  • Don’t waste your money communicating to this bunch with mass-media. Surely you have their email addresses or phone numbers? But more important than a cheesy Christmas card every year is to keep delivering the top quality products and services they have come to expect. Keep up the good work. Nice job.
  • High Volume:
    • If we all had lots of high volume / high loyalty customers we’d all be rich! But unfortunately they are hard to get, hard to keep and there are few of them.  So don’t retire yet
    • It’s a double edged sword: Does having just a few major contracts make your business secure and stable, or does it make you weak and vulnerable?
  • Med/Low Volume:
    • Don’t neglect the little guy. They might never turn into high volume, but they are your bread and butter today. But you already knew that I’m sure.

2. High User + Low Loyalty To You = Your Competitors Best Customers

  • Do you think you can win the most loyal customers of your competitors? You’re dreaming! They’re out of your reach
  • Can you turn a Holden fan into a Ford fan? No, you can’t. So give up and pick a fight you can win
  • But, be ready – wait for the competition to make a huge screw-up and be there with a smile on your face welcoming them home
  • This group is completely blind to your advertisements. They have made their choice of supplier for this category/industry/niche. Life is easy and peaceful for them. Let them be at peace.

3. High User + No Loyalty = Attractive But Deadly

  • This group is super attractive, because there are so many of them
  • Your boss will put enormous pressure on you to do whatever it takes to make this group buy from you this week. Most of the time the only tactic that will work is a super special price (maybe at break-even point!)
  • Sure, you might make the sale this week, but next week you’re playing the same game again and next time they’ll choose a different supplier
  • These guys suck up your advertising budget and contribute little to your profitability
  • They don’t care about the brand you’ve worked so hard to build. They don’t see distinction or differentiation between your brand and your competitors. “Who is cheaper this week? That’s the one for me!”

4. Non-Users + No Loyalty = Untapped Markets

  • This group has never made a purchase
  • They have the same problems and issues that all the other customers are facing, but not know that a solution exists!
  • For example, one of the most popular websites in NZ is called 1-day.co.nz with half a million visits a day, but it seems that 80% of the people I tell about it, have never heard of it! Could the same be true for your business? What are they reading/watching/listening to that you don’t normally advertise in?
  • The only bummer with speaking to the members of this new market is that you are breaking the ice for your whole industry and they may not choose you!

5. Med/Low Users + Low Loyalty To You = Your Competitors Bread and Butter

  • This is where your growth can come from
  • It’s about maintaining your high quality, providing remarkable service (even if only occasionally) and trying to activate Word-of-Mouth
  • What can you do to turn your customers into ambassadors for your brand?

Need Help?

Need help analysing the opportunities for your business?

I’d loooove to help!  Call (07) 575 8799 or email sheldon@marketingfirst.co.nz.

Cheers,
Sheldon.

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