In my last post I wrote about how changing purchase or use behavior is one way to improve sales of a product when you have a product that can’t be changed. Motor oil was the example I used. Avocados are another. But what if you can’t materially impact purchase frequency? Then what?
Then it comes down to loyalty and referral.
There are plenty of examples of this type of product marketing need. You have very little control, for example, over how often a customer buys a new house or builds a new nuclear reactor. In these types of markets the best you can do is win on loyalty and referral.
It’s easy when you think about it. If you can’t get the Smith’s to move into a new home faster than the every five-year clip their moving at the next best thing you can do is guarantee that they use you when the time comes and that they’ll refer you to their contacts in any discussion about real estate.
In these markets it’s not about changing purhase frequency. It’s not about rewriting the rules around use. To create loyalty and referral requires two different elements: a remarkable first transaction and diligent and thoughtful follow up.
Both fall into Godin‘s world more seamlessly than the commodity marketing in my last post. Creating a wow first experience is really the key to this type of marketing. Because it powers the rest of the cycle. The virtuous cycle of loyalty and referral is kick-started by that first experience.
A wow experience out of the gate gets you halfway there while a ho-hum or unsatisfactory experience leaves the cycle DOA. The follow up is what gets you the rest of the way and makes sure the wow isn’t wasted. (That’s a post for another day.)
The tough part is defining the wow. Because wow is different to everyone. Each customer has their own need. So you can either tailor each experience to your customers’ needs or you can seek out customers who appreciate your style of business. Continuing the real estate example, if you’re completely automated and tech driven you may do better to seek out people who don’t want to “waste a lot of time” on pleasantries and phone calls. Whereas if you’re the warm friendly type, targetting type-A personalities who answer your phone calls with text message replies might not be the best market segment for what you bring to the table.
Regardless of your approach one thing is certain. Being marginally better than the competition is the least fortuitous route to the virtuous cycle in these marketing arenas. You really need to be at an extreme to succeed. You can’t be somewhat friendly and somewhat convenient. You need to be at one end or the other. Otherwise you’re like everyone else.
And when you’re like everyone else you don’t command loyalty and you don’t command referrals. And that is not a good spot to be in when your customers only make a buying decision once every 5 (or 50) years.
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