Here is a slideshare on the third book in the Goldfish Series, the Golden Goldfish: The book is based on the simple premise that all customers and employees are not created equal. For most businesses, 80% of profitability is driven by the top 20% of customers and employees. These are simply your “Vital Few.” The book focuses on nine different ways to do the “little extras” to promote customer advocacy and drive employee engagement with these key stakeholders.
Pareto’s 80/20 principle is brought to life by authors Yoon, Carlotti and Moore in a case study about Kraft Velveeta cheese. In 2012, sales of Velveeta cheese were on a downward trajectory. The brand managers were faced with a challenge. Should they focus on getting lapsed consumers to buy Velveeta again? Or should they work to get occasional purchasers to buy more frequently? Their research uncovered that the top 10% of Velveeta buyers account for over 50% of proﬁt. Kraft decided to focused on this key segment of 2.4 million consumers. According to Greg Gallagher, Velveeta Marketing Director, “The previous thinking was that the quickest, easiest path to growth was to identify light users or lapsed users. But when we talked to superconsumers, we learned that in fact they wanted to use Velveeta more —they were starving for it.” Kraft went to work on creating brand extensions. Additional products that contained Velveeta. The results are anything but cheesy. New product spin-offs totaled over $100 million in additional sales.
GOLDEN GOLDFISH LESSON: Do more for your best ones. In the words of Yoon, Carlotti, and Moore, “Show the love to those that love you the most.”
Today’s Lagniappe (a little something extra thrown in for good measure) – Speaking of a Golden and a Goldfish, here is a video of Rellie the Golden Retriever discovering a goldfish tank for the first time: