Make Your Best Customers Even Better Essay
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New Thinking, Research in Progress hbr.org
by Eddie Yoon, Steve Carlotti, and Dennis Moore
ust over a year ago, managers at Kraft believed jthat their Velveeta brand had only moderate growth prospects. With the consumer migration toward natural and organic products, sales of Velveeta—a processed, unrefrigerated "cheese food"—had languished. The customers who did buy it typically used it once or twice a year, usually to make a …show more content…
"But when we talked to superconsumers, we learned that in fact they wanted to use
Velveeta more—they were starving for it."
The new product launches have generated more than $ioo million in sales. Just as important, managers believe they have found a viable growth strategy for the first time in years.
Every marketer is familiar with the Pareto principle. Known colloquially as the
80/20 rule, it suggests that one-fifth of a product's buyers are responsible for fourfifths of sales. A similar effect applies to superconsumers. Using Nielsen supermarket scanner data, we analyzed the top 124
24 Harvard Business Review March 2014
FIVE MYTHS ABOUT
They're just heavy users with a new name.
Unlike traditional heavy users, superconsumers combine big spending with high engagement and deep interest in new uses for a product.
They don't exist in my business.
They aren't normal— they're either wealthy or just weird.
They're impossible to find.