AI-Powered Marketing - Conversations about AI , and digital marketing
Unlocking The Red Velvet Strategy: Boost Loyalty & Profits | #207
Hey everybody, Keith Bell here welcome back to another episode of the AI powered marketing show Today we're exploring a fascinating concept from a newsletter article I read today from stacked marketers psychology of marketing series the red velvet strategy Now, I've also gathered some additional insights from my research on perplex the AI to help in Rich our discussion, so let's get right into it Welcome to the digital marketing revolution This is the AI powered marketing show where the future of marketing is not just imagine. It's already here Are you an entrepreneur a digital marketer or a tech enthusiast then you're in the right place every day We explore the cutting-edge tools that help you manifest and monetize your expertise through the power of funnel hub supercharged with artificial intelligence Unlock the secrets of turning your expertise into a digital powerhouse from actionable insights to transformative strategies We've got you covered Now, let's dive into the world where AI meets marketing where ideas meet execution and where you meet success Your journey to marketing mastery starts here Here's your host Keith Bell bringing the future of marketing to you today to Welcome back As I said today, I was reading an article from a newsletter. I get from stacked marketer psychology of marketing series and I get Once a week and I've gotten some real good tidbits out of it and I want to share this concept of the red velvet strategy with you today and It's a marketing approach that is focused on creating unique and exclusive experiences for a brand's most valuable customers This kind of brings back the insights I gained from my interview of Jesse James Robluski in talking about differentiation and de-commodization and You'll see some similarities as we discuss the strategy a little bit more today So today's topic the red velvet strategy Uses the red velvet cake analogy. So think about a red velvet cake. It's You know, it's creamy and often times. It's you know, got a red interior and You know, it seems kind of special and exclusive, but Essentially, it's a chocolate cake with red food coloring and buttercream frosting Yet, it stands out as unique and special So there's a perception difference The key takeaway here is that even in a crowded market you can stand out by adding a creative codus codepaint so to speak Now the purpose of differentiation should be driven by customer research and market psychology not just for the sake of being different The key elements of the red velvet strategy are exclusivity like that word exclusivity offering unique benefits and experiences not available to the general customer base makes top customers feel special and valued I often think about like Think about the the whale that goes And the whale is the high roller Customer that goes to a casino and they lavished them with gifts and comp rooms and comp meals and comp shows And they make them feel special and valued They may have a you know, a red key club that they join but they make them feel Special and important and that's kind of the key Take away of the red velvet strategy that it provides an exclusive experience Examples include premium samples early access to new products and special events Rajish join a marketing expert notes exclusivity makes your best customers feel like VIPs fostering deeper loyalty and engagement The next element of the red velvet strategy is the high value customer focus So this this strategy specifically targets your best customers Identifying them through metrics like customer lifetime value these customers typically spend more stay longer and act as brand ambassadors manual Senka founder of stack marketer says focusing on high value customers can lead to increased sales and profitability Another element is enhanced customer service so when you provide superior customer service to your top tier customers This is a crucial element of the red velvet strategy This can involve priority support and simplified processes like returns and exchanges Senka adds superior customer service for top tier customers is essential for maintaining their loyalty so think about some of you know Premium services that you have like for example You know, maybe you have a membership at a golf course and you have special access to You know You know the premium level Membership program that other people have you know, you you get early access to the core She get to make earlier tee times you have, you know, somebody act that acts like a conch chairs for you So that improved enhanced customer service customer experience is a crucial part of the red velvet strategy differentiated marketing efforts now your marketing efforts should be highly targeted and personalized using the recency frequency and monetary model this helps identify and target most engaged and valuable customers with tailored email campaigns Hey digital marketers entrepreneurs and tech enthusiasts ready to elevate your AI game Check out the AI powered marketer newsletter from Keith Bell host of the AI powered marketing show The AI powered marketer newsletter is your go-to resource packed with actionable insights Cutting-edge tools and the latest news in AI and digital marketing whether you're optimizing sales funnels Exploring new AI strategies or staying ahead of industry trends this newsletter has you covered? Don't miss out on the chance to supercharge your marketing efforts subscribe now just click the link in the show notes to sign up today and Remember the future of marketing is here and it's powered by AI. See you in the newsletter personalized offers and promotions based on individual customer data and preferences are key So what are some examples of brands using the red velvet strategy? Well, we've talked about this one before in the show and that is liquid deaths If you remember from my interview with Jesse James or Luske if you happen to watch the youtube version of it I actually went out and bought a can of liquid death Now the first thing that you'll notice is that this brand flips the traditional bottled water market by creating a unique and edgy brand identity marking ls gen I'm going to say her name wrong gen Chileans says liquid death has successfully differentiated itself with bold branding so The first thing that I noticed about liquid death is that it is sold in a tall boy style can that you would often drink a beer in and I remember specifically that Jesse James robo Luske had mentioned to me that in his conversations with the owner of liquid death company that He said that 80 percent of their Their product is marketing The water is water, you know, and I you know, I'm talking about another Example of another water company here shortly, but 90 percent of it was marketing and creating a brand identity And if you want to really have a good time go on liquid deaths website They've got, you know, some incredible stuff on there that really I think the one thing I remember was that you could buy a country club membership For I think it was a hundred and twenty six thousand dollars or you could sell your soul So it was really they're really kind of an edgy group And I do remember one more thing here that Jesse told me that they take all of their customer complaints All of their, um, you know, negative feedback that they get and they turn it into heavy metal death Um, metal lyrics for song. So I thought that was kind of interesting More commonplace common group here are Starbucks Their loyalty program offers exclusive rewards and personalized experiences Starbucks loyalty program is a prime example of how to keep top customers engaged and coming back Uh, this one's my favorite one of my this is my favorite gray goose vodka this brand Exc- this brand's exclusive experience and high quality product appeal Is for discerning customers Gray goose focus on exclusive appearance experiences sets it apart in the premium vodka market And I remember, um, you know a couple years back I was dating a woman and she would only drink gray goose And you know a good friend of mine love her dearly But, uh gray goose I got hooked on it because I wanted to be part of that experience. You know, the bottle is cool Um I think they kind of lost the mark when they started making some crazy flavors I think the craziest one I remember is the fruit loop flavored gray goose Um Take it literally tasted like If you ever had fruit loops the last little bit that's left with the milk That's kind of what it tasted like so Another one is Voss water Now I for a little while after I retired as a police officer Was driving limo and one of the things that they offered to their clients was voss water So Voss water if you haven't seen it before comes in a tall cylinder type uh plastic bottle with a gray cap and If you remember from our conversations again from jessie james for luski's interview We talked about the water that is kind of targeted towards that yoga, you know Market, um people that are into meditation and marketing for meditation and um yoga So Voss water is an excellent example of brand that has leveraged the red velvet strategy It's not just about hydration. It's about a luxury and exclusive Experience voss marked itself as a premium brand with its sleek cylindrical glass bottle Often seen in high-end restaurants and hotels Manual sinka again voss has created a perception of exclusivity and high quality making it stand out in the crowd Bottle in the crowded bottle mark water market This perception allows voss to charge premium prices tart customer value luxury and are willing to pay more for it I will say That their water is very tasty. I I do enjoy drinking their voss water So what's the benefits of the red velvet strategy? This strategy can significantly increase loyalty and retention by making a top customer feel valued and special It also leads to higher profitability as high value customers are more likely to make repeat purchases and spend more Positive word of mouth from satisfied satisfied top customers can lead organic growth and new customer acquisitions The red velvet strategy can significantly enhance customer loyalty and profitability So think about a brand that you use Or you know, that's a part of your life. You know the person that buys The maserati I saw a guy the other day young guy with a maserati And you could tell that it changed the way he felt about himself. It was a beautiful car But he had a certain air about him not arrogance not cocky or anything But he has certain air about him, you know by driving a maserati You know the the gray goose experience that I went through so think about what's a brand that's in your life that you you know To ride or die brand. You know, is it liquid death? Is it no voss water gray goose? Only you can tell so in conclusion the red velvet strategy leverage is exclusivity Personalized experiences and targeted marketing to create strong bonds with the brand's most valuable customers By focusing on these high value customers brands can achieve higher profitability enhanced loyalty and a distinctive market position So that's it for today folks. I hope you enjoyed our episode on the red velvet strategy Just remember standing out in a crowded market requires creativity Research and a unique approach. Don't you know try to stand out just for the sake of standing out and being different Thanks for joining me On the af parrot marketing show I want to give a special thanks to our good friends at plexley AI For helping to provide some additional insight Just remember go out and innovate and iterate and stay ahead of the curve. See you next time You You You You (gentle music) [BLANK_AUDIO]