‘Superclients’ are the Key to Rooted Growth
Insights from base Camp / Alexsa Young, Dir. Marketing
Let me tell you a little story about a time when a large company was misguided…
Once upon a time there was a cheese company, who discovered through analysis of one of their products, that a very small portion of the consumers of this specific product (10%) were actually consuming most of it. What they found was that, unlike the rest of their consumers, this small sliver of buyers connected with their product at an entirely different level.
When questioned in focus groups about their extreme loyalty to the product and brand, these mega fans could clearly define why they loved everything about the product, could provide additional use cases, and often dipped into their previous experiences and associations to identify how this product enhanced their life. FYI, we are talking about cheese, but hey, I love cheese too and I can feel that!
The company also discovered that these very die-hard brand advocates accounted for 30-40% of revenue and more than 50% of the profits. Hold the phone.
Say what?
This small group of people, only 10% of their entire sub-category consumer base, held that much power? So, what did these cheese-making magicians do with these insights?
They took another look at their strategic marketing and determined how they could utilize this powerful information to make a greater impact. They had to find more ways for that small group of buyers to continuously connect with their brand and product at a deeper level, because that small group had so much potential.
For this company, these die-hards are considered ‘superconsumers.’ This means that they represent high-volume sales, but they also have significant loyalty to the brand and its product. In particular, they have created a connection that makes them innovative brand ambassadors and has hard wired them to be insensitive to price. This just means that the price could (and has, thanks to inflation) increase, and they will still buy it.
“But I don’t sell cheese, so….”
That’s ok! Because the foundation of this strategy translates to virtually all business and industry types, including financial services. And while this specific data is roughly nine years old, the principal holds true to this day. According to the mastermind behind the term “superconsumer,” Eddie Yoon says that “roughly 10% of consumers account for more than 50% of profits.”
Call them ‘superclients’ because they will be the key to profitable long-term growth.
This is a story is akin to the commonly known Pareto Principal, an observation made by Italian economist Vilfredo Pareto. His original observation showed that 80% of Italy’s wealth was owned by 20% of the population. Astounding not much has changed.
Thus, you will probably see the 80/20 idea out there, in which 80% of the consequences come from 20% of the causes. Using this observation has incredible benefits because it can help businesses understand where to make the greatest efforts in order to create the biggest impact.
Re-thinking Your Strategy
Based on what we have learned not only from the cheese gurus, and Mr. Pareto, but the fact that studies show independent advisor businesses are traditionally built on referrals, refining your strategy and targets is imperative.
Think about how targeted your marketing strategies are. Are you spending time and money on digital solutions that thrive on mass-marketing campaigns? Or are you paying large sums of money for promotional and lead generation programs to touch consumers who haven’t engaged with you (aka outbound marketing)?
Behavioral scientist Jon Levy is well known for his platform, thriving on influence. This big-box cheese situation was and still is a prime example of that very thing – the impact of influence and how, when it spreads in the directions that matter, can have a greater result than spreading it everywhere.
What’s the Takeaway?
Consider focusing your efforts and resources on a narrow slice of your clients and COIs… those that bring you the most potential for growth.
- Where do you have the most influence and who can they influence?
- What fuels them? (It’s not necessarily talking about money or looking at charts); and
- How can you create something unique that gives them that cheesy smile and entices them to share their experiences?
You want that 10 percent to bring you a larger pool of revenue and profit. So, find ways to give them that CHEESY smile. One big enough that their networks, friends, and family can not only see it, but feel it!
Moving into this lane can feel like a lot of work, but when you think about it, it’s often far less work than trying to convert a prospect who doesn’t know you at all. (Food, well, cheese for thought!)
But it all starts with tracking. If you aren’t tracking where your growth is coming from or who your most influential connections are, and where the greatest potential lies, you can’t re-strategize. So, focus on tracking where the biggest impacts are being made. And don’t just focus on quantity, focus on the quality of the relationship.
Because die-hard Velveeta fans are not only big consumers, but they have an entirely different level of power… they have the power to convince others that Velveeta is the greatest of all time.
