Cult Brands—companies with unusually high levels of brand loyalty—have learned to serve a special group of customers. Harley riders, Mac users, Parrot Heads, Trekkies, MINI drivers, and the like represent a core group of people at the heart of each brand. We call this special breed of customers Brand Lovers.
Embracing Your Brand Lovers
Brand Lovers aren’t born. They’re made. Cult Brands are deliberately, continually engaged in building strong, meaningful relationships with their best customers. While brands that have the Merchant Mindset chase the next sale, Cult Brands chase the next conversation.
Cult Brands look for ways that they can play an integral role in their best customers’ lives. They embrace their customers like members of a loving family, providing a safe community for them to be who they really are. These brands are bold and courageous—often disliked by many, but loved by a precious few.
A Precious Few Is More Than Enough
A small legion of Brand Lovers will do more for the growth and sustainability of your business than all the transactional customers in the world. Not convinced? We’ve found that Pareto’s Law (the 80/20 Principle) generally holds true. As little as 20 percent of your customers can drive roughly 80 percent of profitability.
For many businesses, it costs five times more to acquire a new customer than keep an old one. Most importantly, the customers who love you the most—your Brand Lovers—spread the word and create new customers for you (just ask anyone who owns a Mac or an iPad).
Before you can embrace your Brand Lovers, you need to know who they are. Are all of your customers contributing equally to your profits? It’s unlikely. There are certain customers who choose you more often and purchase from you over a longer period of time (customer retention). These precious few are the lifeblood of your business.
Do you know who your best customers are? Without this knowledge, you can take yourself out of business or your competitors will do it for you. With this knowledge, you’ll be able to start cultivating brand loyalty and transforming your company into a Cult Brand with all the power and profitability that comes with that position.
Develop a Brand Lover Strategy For Your Business
As we’ve seen, there are many different types of marketing strategies. Naturally, different marketing strategies are appropriate for different businesses at different times and in different marketing conditions.
In our firm, we mainly focus on brand loyalty strategies because we have found (with the help of our clients) that this strategic focus works well in up and down markets. By focusing on your best customers, you continuously learn about your business is especially for and find ways to better serve these special customers.
These Brand Lover Strategies, as we call them, helps you differentiate your brand and make your competition irrelevant while guiding your business towards greater profitability. Put simply, it works.