An important part of brand marketing is the creation of demand and the fostering of customer loyalty.
When you are about to launch your venture and have investors to answer to, it can be tempting to grasp at the attention of any prospect who shows interest. Let’s face it, when the focus is financial goals, it is hard to be picky about who is paying you as long as…well, they are paying you. Making money is a strong motivator, but if it becomes your sole drive, it can also be your kryptonite.
Some entrepreneurs before you have had initial success because of their drive to obtain sales above all else—only to eventually fail when they were beat out by the next “big thing” or lower price offer. Why might this happen? One reason is that trendy consumers, who only buy into the most recent fads, often have fluctuating value systems that make them less than ideal for establishing brand loyalty. Another possibility is that customers who care only about the lowest prices tend to lack capacity for brand loyalty. Of course, there are many business and pricing models—some targeting these customers specifically—and their marketing programs are adapted accordingly. However, if your business is based on business and pricing models that require long-term client relationships for maximum growth, consider an alternative approach. Instead of desperately accepting all requests for services that come your way, you may get better results focusing on ideal customers that will support your business over the long term with repeat purchases, upgrades and referrals.
Brand Exclusivity: The “Red Rope” Model
Envision this: you’ve opened a hot new dinner club on a popular block and Friday night is your grand opening. Instead of swinging open your doors and inviting the general public to come and experience your first night, you send out invitations to the most popular, influential individuals in the entire city. Rather than packing the club from wall to wall, you have a very exclusive party that is limited to a select number of people. These people are given celebrity treatment, free drinks, and party favours in exchange for their endorsement. Instead of making money that night, you actually spend money opening your venue. All the other club managers think you’re crazy, and the gossip around the community begins to spread. Then a funny thing happens; the next weekend comes and people are lined up around the block to enter your club. There is a viral buzz going around about this exclusive new hot spot.
This model of brand exclusivity can be applied to your business marketing to target your demographic more specifically. Instead of making your products and services available to “just anyone,” you can turn them into a status symbol by exercising a little bit of restrictive marketing. It’s a approach that can come to life with on-target brand storytelling.
Instead of flailing about grasping for the attention of any consumer, you can strategically pick and choose the type of consumer you want to have access to your product, and by doing so create an interest and demand for your product because it makes a person part of something special and selective.