"You Can't Be Everything for Everybody, So Stop Trying"
Jim Jones, the other day, wrote an article for Entrepreneur Magazine titled, "You Can't Be Everything for Everybody, So Stop Trying."
He signified the fact that 'it's impossible to build a business and market a brand in a way that serves everyone', and went on to explain how doing this ends up actually being counter-productive rather than building up your customer base. Jones argues that attempting to be everything for everybody waters down the business proposition and brand promise, something which doesn't act in aid of any marketing strategy's success.
One primary recommendation that Jones set, for any business, is to concentrate on loyalty. See his point below:
To illustrate the value of having loyal customers, Jones references Apple. Apple, some how, manage to have queues of people forming countless days before the release of their new products. Their products aren't cheap, limited, or inaccessible. However, within just a few weeks of the release of their iPhones, most of us probably know a handful of those lucky few who managed to get one so quickly. As an Android user myself, I always am shocked at how popular these devices are. Over 1,000 people were seen queuing outside Covent Garden's Apple Store for the launch of the iPhone 6.
Although sustaining loyalty is in no way a new concept, it is a business element many brands are lacking in. This is why we are now starting to see changes by big brands in aims to flex their potential customer loyalty.
Hyatt, global hotel super-brand worth $61.60 billion, recently announced changes to their loyalty program, jump started by their 'World of Hyatt' campaign. You're either a Discoverist, Explorist, or Globalist. You can rack up points not only based on how many nights you've spent at their hotels, but also on how much you spend on other services, such as their dining or spa services. Jeff Zidell, senior vice president of Hyatt, said that what Hyatt’s target guests wanted included “a broader range of benefits and more obtainable rewards” as well as “more rewards along the journey as your engagement with us increases.” The loyalty scheme's returns are also done on a proportional scale, where the customer will receive 5 points per dollar's spend with them.
Oliver Hupp, global director for brand strategy and tracking at GfK, made the case for growth through building a higher number of positive emotional relationships with consumers through more memorable brand experiences rather than simply expanding the customer base. His article, "Loyalty is the key driver of brand growth," can be found on WARC. He concludes to say that, "only brands that successfully build a higher number of positive emotional relationships with consumers will enjoy higher penetration and loyalty in the long run."
I believe we're going start witnessing changes in business culture. Rather than businesses trying to retain customers through traditional means, we may start to see innovative action with the foresight on increasing loyalty.
#opinion #marketing #advertising #loyalty #business #strategy #future