It's the Few Heavy Users, Stupid!

So, in the last post we said that advertising messages should be created for, and directed at, the Heavy Using Customers in your category.

This simple concept helds a lot of fundamental implications...

First of all, why should your Digital Billboards Advertising aim the Heavy Using Customers? Easy: because the few Heavy Users represents the biggest part of your revenue (and profits).

In terms of value of goods sold per Customer, the Pareto Rule applies (also known as the 80/20 rule): 80% of your business is generated by 20% of your Customers.

But this means that light and average users represent a significant percentage of consumers, up to 80%!

When your Customers invest in advertising on your digital billboard, it costs them the same to reach the average as it does to reach the heavy user.

Which mean that most of the advertising effort (and cost) is wasted towards people that wouldn't buy a significant amount anyways - or wouldn't buy at all.

This also means that if an advertising message is created for the average user, it doesn't have an impact to the heavy users!

Heavy Users probably understand your business better than you do, they know your competition better than you do and they might know your product better than you do.

So targeting the average user is stupid because your are wasting most of your efforts towards people that won't significantly affect your business.

What you must do is understand who your heavy users are and what makes them buy your product. And then give them even more compelling reasons to do that over again with an even stronger message.

Of course it’s hard and requires a lot of work... but do you have any alternative?