Only Which Flavour?
|Ritter Sport chocolates come in many flavours.|
If you’ve been to Europe, you will know about chocolate. Belgian and Swiss chocolate is world famous. Anyone visiting Germany will soon discover Ritter Sport. It comes in a distinctive square packaging that you sort-of crack open. Now Germany might not come first when you think about chocolate, yet if you visit and get to try Ritter, then you will agree that Germany’s chocolate is first class. Ritter comes in all sorts of flavours, from Wholenut to Nougat. Everyone has their favourite.
In all there are more than twenty different flavours – and of course their different colours. Sure, if you’re going to try one, it means visiting your local chocolate shop or supermarket and making some very difficult choices.
Which one do you start with?
How do you choose between Alpenmilch and Nougat? Wholenut and Marzipan? Don’t ask me, those are the kind of decisions that can’t be made by the rational mind. Certainly a female one. Anyway, my favourite by a long way is “Expresso” with its creamy coffee-chocolate mix doing wonders for the female organism.
It turns out that out of the twenty-plus flavours, five of them account for half of their sales. This isn’t just ingrained habit forcing a purchase as with coarsely branded products. The quality really is so good that any bar is as good as any other. It really is a personal choice. Wholenut – Vollnuss in German – comes out top. My own favourite, Expresso comes somewhere around number 14. You see, sales aren’t the same across their range of flavours. What’s more, there is nothing Ritter can do about it. Which means they simply have to make more Wholenut than they do Expresso.
Because their happy customers like chomping on Wholenut more than any other flavour.
Only Ritter choccies are commodities, and as such are sold on price. That’s around 85 Eurocent per bar in Germany (that’s about 65p or one dollar). The costs of making or the profits they make are pretty much the same across their range. Whatever business you are in, you will have popular products. You will also have good customers who come back regularly and often.
Tie the two data metrics together and you start to have the shape of your perfect customer. High profit by any other name.
The 80-20 Of Your Customers
This is the basis of 80-20 thinking for any business. A small number of your customers drive most of your profits. Sure, you can’t do without your ordinary customers, nor would they want to be without you. Only pander to your best customers and they will be pandered to in a way that keeps 80% of your customers happy. Because keeping your very best customers happy pays big dividends. After all, they are the ones that you make the most profit on. Because if you find one more of your best customers, whilst they may only represent 1% of your customer base, they will represent a 5% addition to your profits.
This non-linear relationship is the foundation of 80-20 thinking.
That kind of customer is well worth having. It is also the easiest way to claw your way out of a tight commodity market without needing to change anything. At all. In fact, it isn’t even hard to do. The hard bits are those things I have the strategies for. It takes knowing who your best customers are, which means tying two usually disparate elements. Your customer list and your list of purchases. If you’re doing this already in your business, you’re the exception. So dig into the data that you already possess, work out who those people are who buy time and time again. They’ll represent around 3-5% of your book – and then check how much profit they’re generating for you. I guarantee the results will have you reeling.
As importantly they’ll be the customers who sort-of slip through your business’ systems unnoticed. Simply because they fit well means they don’t cause any trouble – they buy, say thankyou and disappear for a while. It’s one of those subtle business facts that your best customers are often those that are least visible. Oh, and those are the customers who bring you that extra profit year in, year out. Because your best customers are the ones that come back time and time again.
How Comes A Copywriter Offers 80-20?
It’s all part and parcel of the background to my being a copywriter – because the best copywriters write for someone, not everyone. And that “someone” is – you guessed it – your best kind of customer. Knowing who they are, and combining what I know that makes you special means I can write about your business especially for them. Because getting one more of them will be worth every penny you pay me.
And all you need do is do exactly what you are doing now. Only this way you will stand in the crowd, and to your best customers there will be a flashing light on your head. Oh, and they won’t think “flashing light” these customers will think of the things your business does for them that they really like. If you’re interested my contact details are below. You can also sign up for my occasional newsletter and updates. [NB: these are no longer available.]