Airline check-in counters, award show ceremonies, and sports events all have one thing in common: designated areas where VIP customers get a special experience exclusive to them. These Best Customers get access behind the velvet rope where they are treated as royalty. Netcore Solutions is here to apply this very idea of to the world of marketing. During this time of global hibernation, we have been working on a revolutionary marketing strategy that is here to shake up the consumer market.
Netcore Solutions presents Velvet Rope Marketing (VRM)! VRM is a novel, customer-centric, marketing model that can show you how you can double your profits! Our marketing model will help you leverage your data and customer relationships effectively to ensure steady improvement of profits to numbers twice of the current amount! We use your customer data to determine your customer’s tendencies, which customers to target, and how. The key change in thinking is to shift from a customer-friendly approach of catering to every customer to a customer-centric approach of focusing on your Best Customers and treating them differently.
The VRM model relies on the idea of customer centricity, as outlined by UPenn Wharton’s Professor Peter Fader. Customer-centricity is the idea that a company’s customers are not created equal. A part of the customer base provides the company with most of its revenue (20% contribute to 80% of the revenue) and customer-centricity focuses on that special group. In fact, as Sunil Gupta points out in his book, “Driving Digital Strategy”, a brand’s top 20% customers could actually account for 200% of profits. By realizing that the customer base is heterogeneous, customer-centricity urges brands to focus and cater to the special group (the Best Customers) only and not to the entire customer base. We have built on the work by Peter Fader and Bruce Hardie to fine-tune a model which pushes brands to cater to the customers that fall in their top 20% percentile. The top 20% constitutes a brand’s Best Customer group and our model suggests that by providing these customers with Ease, Access, and Exclusivity every brand will double its profits!
Customer centricity should not be interchanged with customer-friendly behavior. A customer-friendly approach pushes companies to treat all customers the same regardless of their contribution to the company’s revenue. On the other hand, customer-centricity pushes companies to focus only on the Best Customer group and give them the Velvet Rope (or special) treatment. Customer-centricity does not ignore the rest of their base whilst still prioritizing the needs of the Best Customer(s). The shift in thinking from being customer-friendly to customer-centric is the pivot that we believe will boost your revenues to a level you have not seen before.
Adopting Netcore’s VRM implies detailed breakdown of your customer data by our data analytics team. Once we have analyzed your data and identified your Best Customer group, our expert CSM team will guide you on how our Smartech platform can be integrated to improve your reach and actionable steps you can take internally to boost your sales! Stay tuned to this series to learn more about the Velvet Rope Marketing Revolution by Netcore Solutions!
Rishabh Kishore works with Rajesh's team, and is helping in developing the VRM model. He did Economics and Legal Studies at the University of Wisconsin. When not working, he likes to play frisbee