Mass marketing or tailored to your tribe?

Mass marketing or tailored to your tribe?

Mass marketing or tailored to your tribe?

22 December 2017

New study demonstrates just how important heavy buyers are for your brand.

Customers build up purchasing habits (brand preference) as soon as they buy a branded product, but considered over a short time period many customers may appear not to be loyal, only shopping a brand occasionally. However, over the longer term “heavy” brand shoppers become increasingly important, responsible for up to 80% of a brand’s sales. As many brands spend large sums investing in mass marketing, attempting to reach as many potential customers as possible, this study demonstrates there is competitive advantage to be had from identifying and regularly communicating with a brand’s best customers.

Download the report for full detail of the findings - summary below:

  • The heaviest 20% of brand buyers are typically responsible for 70-80% of a brand’s sales
  • The highest spending customers are more important for smaller brands than market leading brands within a category
  • As would be expected, the true impact of brand loyalty becomes more apparent over a longer term (5 years)
  • The traditional 80/20 view of sales to top customers appeared to be more accurate for more brands than the 50/20 view presented in 'How Brands Grow' by Bryon Sharp
  • Significant variances in individual category behaviour suggest a tailored category & brand strategy is required to optimise marketing ROI



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