Not all “selling” is equal. Taking a product-centric approach to how you sell could be inevitably setting your health brand up for leaving a lot of money (and brand loyalty) on the table. However, when you take a truly unique approach and hone in on what your high-value customers are buying then you can quickly accelerate your profits and customer retention. Here are three key reasons why this is true:
- Mass selling undermines your bottomline. When you “sell to the masses” you lose a high level of customization you can offer to your customers. This often forces you to ignore many of your high-value customer segments. With less personalization available, you are limited to the price point you can charge, inevitably shifting all of your attention to driving high sales volumes, upsells, and increasing your product margins. Not only does this put a strain on your sales and marketing functions, but you’re losing out on a huge opportunity to engage and provide value for your most loyal customers (who are willing to spend more).
- High-value customers are “better” customers. High lifetime value customers have 2-5X the revenue value and up to 20X the profit value of your average customers. By analyzing your lifetime customer value, you’re able to quickly pinpoint those customers who have been loyal to your brand and find ways to market specifically to those segments. These customers tend to buy more from you, more frequently, and generally use fewer discounts on their purchases. That means you can generate larger profit margins by honing in on and providing value to those customers that already are loyal to your health brand.
- Product-centric is a commodity-like position. Focusing too much on the products you’re selling as opposed to who you are selling to, puts you at a disadvantage. Not only can this move your brand into a price war, but you also miss out on being ahead of key consumer preference shifts. Product-centric marketing treats all customers the same. Whereas, customer-centric marketing focuses keenly on your highest value customer segments and how and what they consistently buy. Taking this “people-first” approach will enable your health brand to speak directly to your most loyal consumers and get them to buy even more.
One of the clearest examples of a company marketing to high-value segments is Nike. It doesn’t just make shoes, it makes versions of shoes for professional athletes, regular exercisers and amateur athletes. Because of this it knows to adjust the performance of it’s products according to a tennis-player’s needs versus a basketball player’s or a runner.
Generic marketing doesn’t work
If your marketing strategy is treating your customers as a “one-size-fits-all” then you need to make the powerful shift now and, instead, focus on attracting and retaining better customers. When you do, you’ll be able to easily accelerate your business growth by tapping directly into those segments who already love to buy from you.