This Will Help You Recognize Your Best Customers and Treat Them Right
When you started your business, you visualized your perfect customer. You saw a person who had the exact problem your product solves. Or someone at the precise moment that they had the desire for what you offer.
If you were diligent, you created a formal outline describing this person, called a buyer persona.
You detailed demographics like age, gender, family status, income, and education.
You considered life events (marriage, new kids, graduate, etc.) and how those affected people’s decisions.
You knew their interests, lifestyles, and hobbies.
You planned how you could delight them and turn them into reliable repeat customers who would tell their friends great things about you.
Then you got started and began to recognize certain characteristics with your best customers. The very best ones fit into particular demographic. They probably had certain lifestyle traits around entertainment, religion, and politics. You may have recognized certain life events like moving to the suburbs or landing a new job that triggered your ideal customer.
That recognition was a critical moment for your marketing.
Whale Watching
In online gaming, a “whale” is someone who plays far more than an average player. These whales may make up only 2% of players, but they account for over 90% of all usage.
If you run a fitness center or all-you-can-eat buffet, you have to manage whales carefully. They are your most loyal customers, but they also cost you the most. If everyone ate like Joey Chestnut, Golden Corral would go broke. If everyone who bought a season’s pass to the gym or ski resort went every day, it would be unmanageable.
But in a regular restaurant where Joey has to pay for every hot dog he eats, the whale becomes your ideal customer.
One of the main purposes of your analytical marketing data is whale watching. You want to identify that smaller percentage of people who make up the majority of your business. This number frequently follows the standard 80/20 rule (80% of your business comes from 20% of your customers).
Data shows that businesses which consistently delight and retain their 20% outperform other businesses by as much as 5:1.
That 20% is vital – but even they don’t make-up your 2% of whales.
That 2% is made up of customers who leave online reviews and give word of mouth referrals. Your whales are your fans and advocates.
Whales are priceless.
Your whales don’t need to be bribed or enticed to act. They spread the word because they really love what you do.
However, your 20% may not make as much noise as you’d like. Ask them to kindly spread the word.
Positive reviews are more important than ever to digital marketing. Online consumers want to know that you have a core group of heavy users who love what you do. If they see their lifestyle reflected in that group, they’ll want to join.
You’ll never come up with an advertisement or tagline that’s as persuasive as the content your whales create for you on review platforms and social media.
Applebee’s Goes Back to Their Core
Applebee’s restaurants provide a case study in what can happen when you shift from your core audience and let your whales drift.
They made an effort to target a new audience of younger, modern-millennials, pulling up their roots in “middle-America”.
They tried too hard to be cool.
“Over the past few years, the brand’s set out to reinvent Applebee’s as a modern bar and grill in overt pursuit of a more youthful and affluent demographic,” John Cywinski, president of Applebee’s said in a call with analysts this week. Those efforts, he said, included “a clear pendulum swing toward millennials.”
But that turned out to be a bad idea. Longtime regulars balked at new menu items and modern decor, said Patrick Lenow, a spokesman for DineEquity.
“I think, in retrospect, we may have tried too hard to attract new guests,” he said. “That left some of our fans shaking their heads, asking ‘What happened to Applebee’s?’”
Your core, ideal audience is not something you create. It’s something you recognize.
Then, when you make a connection, you respect them.
You may try things to gain new fans and expand your reach. It’s a legitimate growth strategy.
But the 80/20 rule is uncannily consistent. Most traditional, pay based on usage businesses rely on that 20% to turn a profit. If you don’t develop a core customer group that reflects your ideal client persona, you’ll probably struggle.
And just as important are the whales. The 2% that love you so much they’re willing to tell everybody about it.
Avoid alienating your whales at all costs. Without them, your ship is sunk.
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