[Double Jeopardy law] Lower market-share brands suffer from both low purchases, and low loyalty
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In the 1960s, sociologist William McPhee coined the notion of "double jeopardy", to describe people's sympathy and tendencies toward certain behaviors.
Its application to marketing is due to the statistician Andrew Ehrenberg who made the "double jeopardy" concept an empirical law according to which brands with lower market shares suffer from both low purchases and low brand loyalty.
In other words, less popular brands not only have fewer buyers, but also have fewer loyal customers compared to the dominant popular brands in the market. According to the concept of "double jeopardy", a dominant brand therefore has the highest percentage of purchase and a greater consumer loyalty to its brand. What is for the popular brand a double advantage, has a negative consequence for less popular brands: it is difficult for them to retain their customers and increase their sales because it is not easy to convince buyers that the quality of a product less sold, is of better quality than a brand recognized by all.
No matter what your product is, you are ultimately in the education business. Your customers need to be constantly educated about the many advantages of doing business with you, trained to use your products more effectively, and taught how to make never-ending improvement in their lives.
As customers, what we crave more than the commodity we think we are paying for is to be understood.
What we want more than a reliable ride to our destination, a comfortable bed for the night, or even a book we can get our teeth into, is to really be seen.
What we want more than responsive organizations is personal relevance.
The value isn't just in the data that businesses collect. What counts is how they use it to make our lives better.
Lee tore five sheets of paper off of his notepad (yes, notepad—Lee was laptop-resistant at the time) and crumpled them ...
I have great respect for anyone who can invent a clever name that suggests something about the brand. Some of my favorite coined names are Dreamery, Groupon, Pictionary, Cinnabon, Chillow, Pinterest, Chuggemaut, and San Franpsycho. (…) It's important to make sure your name is meaningful to potential customers, not just to you.
When you get back to basics, marketing is simple. Marketing means getting people in your store—and once they’re there, getting more of them to buy. Online, this means the following:
New Signups = Traffic x Conversion Rate
Fundamentally, this framework - the conversation map - helps you break down your marketing problem so that you can employ one of the most basic rules of marketing:
Figure out what’s working and then do more of it.
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Source:
How to Focus When You’re Overwhelmed By Marketing Options, Hitenism.com, consulted on 29.03.2018
