Brand loyalty is at an all-time low, especially among younger health consumers. This makes building lifetime value of the utmost importance for leading health brands. Here’s what you can do to attract, engage, and retain your best customers.
With brand loyalty becoming more fleeting, every customer is not equal. And how you market to your audience requires a tailored approach. Ignore the lifetime value of your target audience and risk sinking marketing dollars focusing on the wrong consumer segment.
What should you do instead?
Segmentation.
Larry Seldon, in his iconic book Angel Customers & Demon Customers, found that up to 20% of customers have a negative effect on profits.
By the same token, the top 20% of customers can drive enormous profit gains by:
- Buying more frequently
- Evangelizing about your health product to others
- Causing referral sales
- Staying with you longer
After identifying your best customers, now it is time to focus on why they buy from you.
This can be your secret weapon to growing your brand awareness and making your marketing messages stick with the most profitable people in your addressable market.
There are two key ways that marketing segmentation can pad your bottom line.
1. Better Targeting
Focusing on the right customer increases marketing ROI.
When you can hone in on your high-value health consumers, what they buy, when they buy, and, more importantly, what marketing messages resonate with them, then you’re able to effectively break through the marketing clutter. By creating personas, tailored to the types of customers you attract, you have a detailed marketing playbook of how to reach each audience.
You want to examine who has purchased in the past 30 days (recency), how often your customers purchase (frequency), and how much they spend (monetary), to pinpoint your high-value customers.
The key is to know them inside and out, including what psychological drivers may influence their purchasing behavior. Invest the time to do your research and you’ll have a golden ticket to higher revenues.
2. Less Guessing
Customer persona marketing reduces wasted ad spending.
With a clear picture of who your customers are, you can create crisp marketing messages that will appeal to their interests, needs, and preferences. And better marketing will drive more sales.
The winning solution: customer personas.
Customers aren’t interested in being treated like the masses. They want personalized marketing or they won’t buy.
You must go beyond just the demographics to get a detailed understanding of how your products and services fit into their lives.
The one-time buyer likely has different motivating factors than your repeat health consumers. Likewise, looking at what your customers buy can give you insight into who they are.
As less than 30% of online customers are loyal to brands, you can’t afford to fall into the one-size-fits-all marketing trap.
The Marketing Secret to Higher Sales
Dedicating the time now to identify your high-value customers will give you an unshakable advantage in your market.
Why?
Segmentation drives 100% more engagement than mass marketing.
The upside revenue potential for segmentation marketing is too significant to ignore because it enables you to reduce the chance of a failed marketing campaign. Instead, you’ll have the insights to know where to market, how to market, and when to market to reach various customer segments.
And the more tailored your marketing approach, the greater health consumer engagement and brand loyalty you’ll have across the board. You have raving fans, find them and market to them as often as possible.