Why a Brand's Most Valuable Consumer is the Next One It Adds

ABSTRACT

Some marketers spend a great deal of time, money, and effort trying to define and target a brand's most valuable consumers among current buyers. ‘Less valuable’ consumers, however, are essential to brand health and growth. A larger percent of profitable consumers among all brand buyers is characteristic of smaller rather than larger brands. Because the average consumer buys more as a brand's franchise grows, the next consumer the brand adds will be its most valuable. Brands need to target inclusively and stand for a vivid, clear but broadly appealing benefit. A narrow, exclusive focus on the ‘most profitable’ households is a recipe for stagnation and decline, not for brand health.