What is it about?
Brands should not be limited to Pareto ratio (e. g., 20 percent of users account for 80 percent of revenue) heavy user targeting,. Conventional wisdom is that firms should target heavy users or customers high on the recency, frequency, and monetary (RFM) value of purchases. Brands should incorporate the possibilities of brand purpose and brand community into brand interaction targeting decisions. There is reason to hypothesize that brands can go beyond the heavy user limit of targeting customer interactions by developing brands around purpose. Purpose can be based on engagement with personals goal or values or on societal values about doing good for others. Brand purpose can be reinforced by either Life Purpose Brand Communities or Societal Purpose Brand Communities. The two types of brand purposes and brand communities offer the possibility of growing a brand by targeting customer interactions at light users and nonuser stakeholders.
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Why is it important?
This approach could increase the value of brands to consumers and extend the life cycle of brands for organizations. Furthermore, the concept of societal brand purpose could allow firms to focus on creating shareholder value as well as addressing social and environmental problems.
Perspectives
Many organizations are adding brand purpose and brand communities to their marketing efforts. The real value of these approaches, however, lies in using these approaches strategically— to target new customers rather than existing ones. Moreover, the impact of this strategy can be multiplied by linking brand purpose to the creation of brand a brand community.
Bobby Calder
Northwestern University
Read the Original
This page is a summary of: Customer interaction strategy, brand purpose and brand communities, Journal of Service Management, February 2022, Emerald,
DOI: 10.1108/josm-11-2021-0410.
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