The Central Premises of Contrarian Marketing are Five-fold

Picture of Contrarian Marketing

By Nick Mavrick

You can find Nick Mavrick on Google+

Excerpt from the Contrarian Marketing Book Introduction:

“Today, experts on the left think the economy won’t expand without more government control, while those on the right say too much government control has made business leaders afraid to take risks. Yet business can survive, reinvent itself; even thrive.

But none of this will happen without a new approach, one that recognizes that if you are to control your businesses’ destinies, then you must concentrate on VIP customers by picking the “Best of Best” (hereafter referred to as B-of-B).  Remember, marketing is a science first; an art second. Therefore, your approach should be rooted in fact-based decision making.

The central premises of Contrarian Marketing are five-fold:

1. “BestoftheBest”customers(VIPs,repeatcustomersor‘regulars’)generatethe majority of most businesses revenue and profit. They account for a small percentage of total customers and a large percentage of revenue and profit. For many companies, ten percent of customers generate 70 percent of revenue and profits.

2. Customize Your Customer Support Systems to Support the “Best of the Best” customers exclusively. Given the importance of B-of-B customers, it is essential that you tailor your operations and your entire company so that these customers have complete flexibility and adapt processes that support them.

3. Clone your “Best of the Best” customers. Instead of focusing on busy work and marketing to the masses, your central aim should be focused on multiplying your success with B-of-B customers by identifying their behaviors and characteristics, and cloning them into B-of-B prospects.

4. Stay true to the Yearly and Lifetime Value of Customers. By focusing on the yearly and lifetime profitability of your customers, you can shift out of short-term decision making, and instead evaluate their profitability to your business over a longer period of time. You can then tailor your business support processes to the different segments within your customer base (specifically B-of-B customers). Many businesses treat all customers the same—or resort to ‘lowest common denominator decision making: “If I make an exception for you, then I will need to make exceptions for everyone.” Yearly and lifetime value calculations wiill allow your employees to make exceptions for your B-of-B customers.

5. Develop an Early Warning System for “Recently Departed” Customers. Develop an enterprise-wide early warning system that lets you know when a B-of-B customer defects or can no longer maintain his or her status as one of your best customers. An early warning system allows you to quickly respond to a competitor poaching your B-of-B customers or a customer service issue. Timely action is essential to keeping these valuable customers.

Make a choice, consciously, as to how you will market—either choose to market to the masses or choose to market to only a few. Will you spread your efforts across the board or concentrate your efforts on the few customers and prospects that drive the majority of your revenue and profits?”

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