The Other Long Tail. The Value of Infrequent Customers. Congrès des Microbrasseries du Québec November 27, 2018

Transcription

1 The Other Long Tail The Value of Infrequent Customers Congrès des Microbrasseries du Québec November 27, 2018

2 Let s think about two hypothetical beer shoppers, Amanda and Zach

3 Amanda loves beer, and she loves variety - but she also loves John Doe Pale Ale

4 Hypothetical shopper number one: Amanda Loves beer and loves variety Buys two new brands plus a 6-pack of her favorite, John Doe Pale Ale Zach hardly ever drinks beer, and he s feeling overwhelmed - but he knows most people seem to like John Doe Pale Ale

5 Who accounts for more of John Doe Pale Ale s sales?

6 For every Amanda, there are thousands of Zachs - Maybe tens of thousands

7 The Long Tail

8 The Other Long Tail

9 There s a widely accepted rule-of-thumb in marketing that a brand s top 20% of customers will account for 80% of its sales

10 The reality is often quite different Source: How Brands Grow, Byron Sharp

11 Even in soft drinks, one in three purchases comes from less-frequent customers Source: How Brands Grow, Byron Sharp

12 So what does this imply about how a marketer should divide his or her attention between Zach and Amanda?

13 First, we should keep in mind that Amanda is important for other, indirect reasons

14 Social influence is the single biggest driver of growth in beer

15 And so Brand Champions like Amanda must be encouraged - they re the key to word-of-mouth and social influence Your Brand Champions Get your brand intuitively Love everything it stands for Spread word-of-mouth Your Base Influenced by word-of-mouth Grow to love your brand Eventually internalize some of what it stands for Provide most of your volume Your Occasional Drinkers Think your brand is pretty good

16 To reinforce Amanda s enthusiasm, John Doe Pale Ale must create marketing that immerses her in the brand experience

17 The design of your brewpub or tasting room may even create opportunities for an Amanda to influence a Zach

18 But what about all that beer that the Zachs of the world buy? When marketing is successful in delivering more sales and share it does so by giving the brand more heavy buyers, more medium buyers, and a lot more light buyers. Marketing is particularly successful when it reaches light and non-buyers of a brand. - Sharp

19 A consideration: Both Amanda and Zach are brand loyal, but what would each do if John Doe Pale Ale was out of stock?

20 To sell more beer to Zach in groceries, always be in arm s reach - Distribution, merchandising, and point-of-sale material No out-of-stock situations!

21 But here s what may not be obvious - Zach s behavioral loyalty can be turned into attitudinal loyalty

22 Brand adoption for most goods follows a think/feel/do process - In social categories like beer it s more often do/feel/think

23 Think/feel/do is a linear process driven by rational perceptions I ve heard of it It has unique, relevant qualities I feel good about it. I ll try it. I like it. I ll use it regularly.

24 Do/feel/think is an iterative process driven by social relevance We drink it We use it. I like it. I feel good about it. I ll use it regularly. It s different. It s better.

25 So for Zach it s about popularity and presence, not exclusivity - Entering a bar he wants to know what they drink around here

26 Create a sense of being big around here by focusing your brandbuilding in one neighborhood before moving on to the next

27 To summarize: Reinforce your emotional connection with your Brand Champions by immersing them in the brand experience and personality - Create opportunities for them to influence occasional buyers In grocery stores, make sure your brand is available everywhere and that occasional buyers know this In bars and restaurants, focus on brand-building one neighborhood at a time - Create strong visibility and a sense of popularity ( big around here )

28 Thank you!