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The Secret to Success? Stay Focused on Your Core Clientele


Too many companies squander money and momentum by chasing customers who won't become repeat customers. The key for a brand to maximize growth is to devote resources to brand advocates or "apostle" consumers, said Michael Silverstein, Boston Consulting Group partner and co-author of Rocket: Eight Lessons to Secure Infinite Growth.

According to a BCG study, these apostle consumers constitute 2% of customers, but account for 80% of a brand's direct revenues. They also account for 80% of revenues achieved through recommendations and 150% of profit.

One brand that does a phenomenal job cultivating apostle consumers, said Silverstein, is Victoria's Secret, which is owned by L Brands (LB - Get Report) . He said the company is on a roll because it understands the needs of its core...