Monday, May 4, 2009

Gillette Focuses In On Their Current Customers

Gillette has adjusted their strategy recently to capitalize on their current customer base. The newest spot for the Fusion blade has a talking blade telling a gentleman that it’s time to get a new blade. When the lubrication strip (also an indicator strip) turns white. It’s time to throw it out and get a new one.



Everyone learns in Marketing 101 that 80% of your sales come from 20% of your customers. So the strategy to focus on keeping your current customers instead of going after the competition makes sense. It even makes sense to try to grow the revenue you receive from your current customer base. They are already buying your product. Why not try to get them to buy more?

It seems like a natural evolution until you think about the current situation of the economy. In this economy people aren’t as brand loyal as they usually are. They don’t feel the need to stick with one brand because that is what they always use. So when you tell your consistent customer of 5 years that he should be buying more of your product you run the risk of coming off as greedy. Granted, there is a payoff to ditching your razor (a better shave) when the indicator strip turns white. But when everywhere you look, people are cutting back and hunkering down to ride out this economic downturn, using your razor an extra week seems like the least you can do.

In my opinion, Gillette would be better served to offer some type of reward program if they want to focus on their current customer base. They could make a program where you sign up on their website, enter the skew numbers from your package of Fusion blades and after your 5th or 10th package you get a $5.00 off coupon. Or even a referral program to earn free packages would help to keep and engage your current customers and bring new customers into the fold at the same time.

Right now, it’s harder than ever for companies to keep their customers. Since it is so important to keep the customers you have already earned, they should be working harder and making it worth the customers while to stick around.

What do you think about this strategy? Is it a solid strategy to keep the customers Gillette already has?

-Dennis

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