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Brands and hyper-loyalty

July 1, 2011

Zynga’s S1 filing contains a very candid statement about potential risks to its business.

“We rely on a small percentage of players for nearly all our revenues”

In a marketing world, where there are a ton of clients who claim they just want to reach “everyone”- there’s a big job for their expert advisers to challenge them and to tell them.

1. Who to focus on?

2. Who they are?

3. Why they matter?

Hundreds of brands are in exactly the same situation, but they spend all their time focusing on trying to acquire new customers instead of investing in retention.

We are in a world where the 20:80 rule- 20% of customers account for 80% of sales has been replaced by the 10:90.

For companies in Zynga’s position, they’ve got to do everything you can to keep these people satisfied- which I am sure in their case means to keep making the most addictive games they can, successfully evolve their established platforms into new experiences and identify those who might be loosing interest and find a way to get them excited again.

It’s great when you brand has a loyal following, but you’ve got to know how to get the most out of them and to reward them for the loyalty- the more you understand what fuels their passion- the more creative and imaginative you can be.

Boring canned loyalty programs aren’t going to fly- you’ve got to surprise them, meet them, engage with them, delight them and encourage them to participate with you.

 

 

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