Why Big Brands and High Customer Retention Are Related

Big brands that have been successful over the years have a very high customer retention rate. Some of this is because of the stationary nature of consumer movements inside of a given market. Part of this statistic is also because large companies have the resources, experience and customer base to be reactive to customer needs and changing economics. Smaller brands must often work much hard to retain customers with limited resources and very little brand recognition.

One of the reasons that big brands tend to have higher customer retention rates than smaller businesses is because of the scale of operation. Big brands generally have a large amount of resources that stem from successful marketing and sales campaigns. This scale provides leverage that can make merchandise and services less expensive to purchase. High profits can also cause the business to have preferred placement in stores and advertising. The benefits of scale contribute to the high customer retention rate that big brands enjoy.

Big brands grow to become household names because of the expertise that is applied over many years to marketing, product development and customer relations. This expertise is reflected through accurate cohort analysis, market research and careful decision making. Customer retention and customer retrieval are two areas that most successful companies focus on in order to increase sales and prevent churn from occurring beyond normal percentages.

The market share of a business is often linked to high customer retention rates. Big brands control a significant portion of whatever market the product or service operates within. This presence makes the brand available to new and existing customers. It can also draw in customers that are loyal to another brand when small companies fail to maintain the same presence. Brand recognition also plays a role by establishing trust between an existing business and consumers that can make a product or service much more attractive than a new and unknown brand.

Successful big brands have learned to evolve and remain relevant to the times. Many of the largest companies have started to employ customer relation management (CRM) software and techniques, like these. Less established brands might not draw enough attention or have enough resources to implement and accurately use this type of strategy. CRM methods can allow a seemingly distant big brand to become very responsive to customers and their needs. It can also give customers a more personal experience with a company when a problem arises. This contributes greatly to customer retention for big brands.

Knowing Our Customers Better Than Ourselves

Understanding who customers are and why they are making purchases is an important part of any business that relies on consumer sales for profit. Marketing, merchandising and staffing can all rely on the analysis of customers to some extent. Companies that disregard customer research and that focus exclusively on the development of internal strategies almost always arrive at a point where there is a disconnection between the consumers and the products that the company is offering. This disconnect can lead to lost profits and potentially the complete collapse of a business that has failed to realize what customers actually want.

Different businesses choose to understand customers in different ways. In some instances, customers are classified by physical traits such as gender and age. A more in-depth process could classify customers by economic and social factors such as education level, income and number of children. A company will often use customer segmentation software to break down information about consumers in order to discover who is purchasing products. Different types of information can be collected over time to create a complete profile of an average customer.

Understanding the common traits that draw particular customers to certain products can help a business to target marketing efforts towards segments of the population where the marketing can be most effective. It can also help to streamline advertising so that discounts and special offers reach existing customers who have a high response rate. Data that is collected over time can indicate purchasing patterns that can help to plan the timing of inventory shipments. Similarly, understanding customer behavior can show unexpected information such as what products are unpopular, the size of average individual sales and what products are purchased at other businesses.

Understanding who patronizes a business can also be used to help improve the customer experience. If a business has a large segment of low-income customers, then more items within a given price point can be stocked. New products can be added based on what customers enjoy buying in order to add value to previous purchases. 

Long term behavioral tracking with customer segmentation software can also show trends in the customer base that can indicate that changes need to be made. A reduction in certain types of purchases could indicate quality problems or increasing outside competition. High customer service transactions could show that stores need to reassess how merchandise is marketed or handled. Ultimately, understanding customers is one of the most valuable investments that a business can make for long-term profitability.

How To Turn Your Car Into a Money-Making Billboard

Many people who purchased the car of their dreams are finding themselves underwater and nearing repossession after the recession. Unfortunately, they do not know of the one technique that could save them the trouble of automobile debt. Creating mobile kiosks from cars have saved more than one vehicle.

You may not even be in a situation this dire. You may just need some extra cash. However, you may not have the time to take on another job. Maybe you simply do not see another opportunity. If you own a car, the opportunity is sitting right in front of you.

There are many advertisers who are willing to pay big bucks to advertise on your vehicle. They would love to be exposed to your everyday routine. They would pay a lot of money for the repeat impressions that your presence gives. This ubiquity leads to a subtle programming that will drive customers to that business. Businesses would kill for this type of access, the type of access that you have everyday.

You also provide something that no company could ever manufacture on their own: comfort. If you use your car as a billboard for an advertiser, you are implicitly expressing your comfort with that company. This means that they can be trusted with the business of your friends and associates. This message will not go unnoticed by the people you come across in your daily routine.

In order for you to capitalize fully on this opportunity, there are usually a few things that you must do for the advertiser.

Advertisers want to make sure that you are out in front of people as much as possible. You will most likely have to sign an affidavit to drive a certain minimum number of miles.

Advertisers also want to make sure to get their message in front of the same people over a period of time. They will want to make sure that you have a certain routine. However, because most people follow the same routine on each work day, this will not be difficult for you to accomplish.

The great part about this type of advertising is that you do not have to approach anyone or hard-sell any new customers in order to maximize this revenue stream. The income is completely passive, and once you put the information on your car, you only have to go about your daily routine to get paid.

Should Marketing Be Allowed In Schools

Schools usually strive to be safe learning environments that are free from distractions. Dress codes are enacted, cell phones are banned and other measures are often taken to keep the focus strictly on learning. Would allowing marketers into schools provide a distraction that is not needed in the classroom?

Marketing Already Takes Place In School
Posters for various colleges are constantly plastered on the walls of high schools across the nation. In that regard, marketing is already taking place in school. While it is good for students to know what options they have to continue their education, shouldn't there be a uniform policy when it comes to marketing in schools? Everyone should be able to market their products if colleges are allowed to.

Free Speech Issues
Free speech is a very important aspect of our culture. Marketers could argue that they are losing their right to free speech when they are banned from schools. Even if permanent signs were banned, wouldn't it be possible to allow for digital signage solutions? Digital advertising could be customized to allow advertisers the right to advertise without taking away from an educational atmosphere.

Would Kids Even Notice
Most kids are already bombarded with advertisements outside of school. It can be difficult to catch the attention of a kid who gets blasted with ads on Facebook, Twitter and any television programs they watch. A very real possibility exists that kids wouldn't even notice yet another ad in the cafeteria. Companies that would want to market in schools might not see much return on their investment.

Resistance from Parents 
Schools are very careful to cater to the wishes of parents. An angry parent is something that a school district wants to avoid at all costs. Negative parental reactions to any marketing efforts done in schools would bring bad press to the school. That negative press would then reflect poorly on the company that is trying to market in the school. Therefore, any marketing done in schools would have to be sensitive to that.


Marketing efforts in schools would probably not be worth the money spent. The more effective route would most likely be to advertise on the social media sites that kids frequent when they are not in school. Companies that want to market in schools should be allowed to do so, but the advertisers would most likely see that the message falls on deaf ears.