I got a lot of comment (mostly positive so far) about my last posting on “How Small is the Market.”
Like many businesses, the market for alcohol follows the old 20/80 rule. Twenty percent of your customers account for 80% of your business.
I came across a posting on a marketing blog that goes the next step.
I follow Seth Godin, a marketing guru, a prolific writer and someone well worth following and reading. Lots of insights.
A recent post of his is called “The circles (no more strangers)” and deals with the value of a “true fan” vs. “strangers.”
He concludes his posting with:
Let’s say a marketer has $10,000 to spend. Is it better to acquire new customers at $2,000 each (advertising is expensive) or spend $10 a customer to absolutely delight and overwhelm 1,000 true fans?
Check out his blog…there’s good stuff there. Here’s a link to this posting — Seth’s Blog