As I promised last time, this post is gonna be about people who act as friends and salesmen at the same time. Made famous by Tupperware, today many companies have realized the advantages of letting their customers do the promotion for them. This way, the companies can reach out to customers who are not easily targeted by conventional marketing methods.
One company that has this marketing model as an integral part of their business plan is the Personal Beauty brand “Mary Kay”. Sales of their products are done exclusively by “mini consultants” who throw “parties” and personal demonstrations of the company’s products.
These demonstrations are usually as much about meeting other people and having a good time as acquiring the actual products. This way, the customers will connect the products with a positive feeling of belonging and friendship, thus creating value and adding to the customers’ loyalty. Aside from the obvious advantages of having customers prefer your brand over other’s, the meetings increase sales by putting customers in more situations where they consider a purchase. A customer who just made a purchase wouldn’t normally be interested in looking for more products of its kind. However, they might still consider going to a “party” for social reasons. Once there, they can easily end up buying products they wouldn’t consider otherwise.
I think this is a good example of a company that focuses on relationships with its customers for long time sales. Although losing out on some transactional opportunities, its promotion and distribution strategies gives them loyal customers who will contribute considerably to sales over a long time.
That’s all for this week. Next time, I’ll try to find a company that is a bit more manly!