Big Idea #2: To grow your customer base, focus efforts on getting new customers, not on stopping existing customers from leaving. This is because science can reveal actual causes and effects of marketing. Then, Colgate’s marketing strategy shouldn’t be blamed for these figures, as they’re simply down to the brand’s relative size.Īs the above example illustrates, marketing practice should be based on scientific findings. This means that it’s only natural for Colgate to have fewer loyal customers and more switchers than Crest because Colgate has a 19% market share whereas Crest has 37%. In fact, there’s a scientific pattern known as double jeopardy law which states that smaller brands have fewer customers who are less loyal than those of larger brands. However, the belief that bigger brands have more loyal customers is false. Marketing managers at Colgate were worried about this and attempted to persuade their consumers not to switch brands by producing advertisements that showed how good their brand was. For example, Colgate and Crest toothpaste companies both had more switchers than loyal customers.
In the past, many brands have been successful without a large number of loyal customers. However, as science advanced and evidence mounted, we learned that this practice is largely ineffective. Big Idea #1: Marketing practice should use evidence provided by marketing science, not rely on traditional beliefs.įor thousands of years, doctors would drain their patients’ blood to cure them.
In addition, this book will show you how there’s probably a Starbucks close by whenever you need coffee. This book will also tell you why advertising isn’t necessary to retain customers, but it is crucial for acquiring new ones. This book aims to provide answers to questions that marketers ask themselves every day, such as whether or not a product should go on sale, and what they should focus on when trying to retain customers or gain new ones.Īccording to the author, people would rather make decisions that are good enough than spend time trying to make perfect decisions. They rely on conventional beliefs rather than the most recent data. Most brands don’t use evidence-based marketing. How do marketers decide what to market? Do they look at empirical evidence (facts) or simply keep doing things the way they’ve been done for decades? 1-Page Summary of How Brands Grow Overview
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