Successful companies target against a small group of heavy users and repeat customers that represents their most valuable customers, as opposed to trying to be all things to all people. This targeting discipline ensures the brand stands for something that s consistent, meaningful and enduring to a company s top-tier customers. Time and time again we see that regardless of category, this small group of highly important customers represents a disproportionate amount of revenue. Focusing on the heavy user as the strategic target improves the efficiency and effectiveness of resource allocations. The heavy user is the most valuable to all competitors.
Companies win when they understand and meet the needs of heavy users better than their competitors.
Once a company selects a strategic target, building a business around it is critical to market success. A perfect example is Nike, for which the serious athlete segment represents the smallest number of users, but is key for brand essence because it represents what real athletes wear. Once the top-tier targets have been identified, it becomes crucial to understand what customer insights are behind the target audience, as these perceptions drive strategic direction. A deep understanding of the target consumer whether proprietary insight or an internal revelation can direct action powerfully. For example, Disney found that parents want safe places and smart decisions for their families.