What is reverse marketing? The importance of marketing in business can be written in a few pages. The essence of marketing is to bring customers to your company. That is why organizations find means of advertising their products and services to people: traditional or modern advertisements.
Marketing does not only build brand awareness, but it also brings customers. This improves the company’s profit after spending on adverts. When marketing is done in the wrong way, the company can run into a loss.
There are lots of marketing strategies in the business world today. How do you make sales when customers are buying less and saving more? This will affect the company’s sales and profit. It is therefore essential that you know what to do in times like this.
Reverse marketing is one of the marketing strategies you can employ in times like this. In this article, you will learn about the meaning of reverse marketing and why it is essential.
What is Reverse Marketing
Reverse marketing is a marketing strategy that allows customers to seek out a company or a product on their own. Can this be possible? Yes, it is possible. Reverse marketing makes the customers seek out a company or product by making them change their buying habits.
Every company needs to make sales and profit to develop. What happens if the sales are reducing? In times when there is an economic meltdown around the world. Times when people need to save up and buy less. How will a company survive by the usual traditional way of advertising?
Reverse marketing can be done in several ways – but the most effective way is to give vital information to customers without asking them to buy anything. Building Value is the core part of reverse marketing.
Instead of advertising your products and services to them, present a solution to the familiar problem they face. This will get your customers accustomed to you and your company. It builds interest and curiosity in them to come and get whatever you are selling.
A widely used example is the Patagonia jacket “Don’t Buy This” campaign. Before the economic meltdown in recent years before 2008, Patagonia needed to make more sales. They understood that both economic and environmental factors mattered to the customers. They launched this campaign telling their customers to think twice before making any purchase. Patagonia didn’t advertise that their jacket was eco-friendly; they made people see that the company itself cares about the environment. The company’s sales rose between 2008 – 2011.
Another company that benefited from reverse marketing is the Dove campaign for natural beauty. Their competitors were focused on their customers’ flaws to convince them to buy their products for improvement. Dove focused on the natural beauty of its customers and celebrated average women’s beauty – Instead of advertising their products. Because of this campaign, Dove was able to rake about $1 billion from sales.
In addition to that, another company that successfully used reverse marketing is Aviva. Aviva is an insurance company. Their campaign was to tell people that they are already living a happy life. Aviva will only make it better and beautiful. This campaign was convincing enough to make customers choose Aviva over any other insurance company.
Before exploring reverse marketing, there are some basic principles you must understand:
- What your customers find important
- Why should they come to you – give them a reason
- Offer value instead of pushing for sales.
Difference between reverse marketing and anti-advertising
You need to understand what you are implementing before you implement reverse marketing – so that you don’t mix things up. Reverse marketing is different from anti-advertising. In reverse marketing, you make customers come to your company by giving them value. Anti-advertising, on the other hand, shows the harms and defects in the product. This is commonly used in the advertisement of Cigarettes. It is boldly written on the packets of the cigarettes that “smokers are liable to die young.” In video advertisements worldwide by cigarette-producing companies, they educate people on the harmful effect of smoking. The goal is to decrease cigarette consumption by stating the adverse effect.
Difference between reverse marketing and reverse engineering
We already know what reverse marketing is; what is reverse engineering? Reverse engineering is the process of finding out the configuration, composition, and functions of a product. You analyze the configuration, structure, and operation of a system to see how it works. Having known this, it is possible to replicate and also create a better version of the system. This action has been termed illegal and controversial. The practice is often employed by companies who want to find the secret of their competitors without having to invest in research.
How does reverse marketing works?
Before implementing reverse marketing, the first thing to do is to do an honest review of your company’s current impression. You must know what type of customers you want and what attracts those customers. This helps craft out vital information needed by your customers.
As said earlier, there are ways to go about reverse marketing. The second thing to do is to get your customers’ attention. You can achieve this by creating content that is valuable to them. One of the best ways to go about this is to specially create content for your customers. You must be able to give them a solution to the problem they are facing. Creating valuable content will bring them coming.
You can effectively do this by market segmentation. Our article on market segmentation might be able to help you. Market segmentation allows you to target your audience well and give them essential information that they need. You don’t have to advertise your company, give them vital information at no cost.
After implementation, track changes to see what the customer’s needs are. Customer’s tastes change with time. What works for them this time might not work for them in the future. Consistently monitor the market to see what their expectations are, what drives them etc. Remember, you are not advertising product – you are advertising value.
Advantages of Reverse Marketing
- Strengthen your brand: Reverse marketing helps to strengthen your brand. Since you don’t advertise products, the values you give to people help to strengthen your business. More people will find your content, and they will come. Reverse marketing helps people to find the essence in your brand rather than the product. They will take the product as a secondary and the value you offer as primary. The more critical the values you give, the more your customers share them with their friends and families. Your brand expands like that. You have potential customers. Not only increasing your reach, but it also portrays you as an expert in the field. Your brand becomes a reference point in the niche. You become reliable as someone who knows what he is doing.
- Improve customer relations: Customer relates with content that is valuable to them. Since you advertise value, not product, customers find it easy to relate. If they get helpful hints from your content, they will come back and even refer you. You create a closer relationship with customers when you identify what they want and give them helpful content.
- Friendly outlook: Reverse marketing offers a friendly approach to customers. This is slightly related to point 2. It offers friendly advice and doesn’t encourage customers to be absent consumers only (I.e., customers who only buy products for buying sake). It states reasons why the company cares more about you than the products they are selling.
- Increase sales and productivity: Reverse marketing brings more customers to you. It increases your sales and productivity level. Lots of profit are generated in the process. These profits can be invested back into the brand for enlargement.
- Customer gain and retention: You have new and potential customers when your brand expands. Reverse marketing doesn’t only give you new customers; it makes them stay. To gain more customers is complex than customer retention.
Things to do in reverse marketing
Evaluate your business: Do an honest review of your internal and external resources. How do your customers perceive your products? Do your employees believe in your brand? This will help you to know what is working and what can be improved on.
Know your target audience: It will be difficult to serve them well if you don’t know your target audience very well. People in different age brackets are faced with different challenges. It is essential to approach each age bracket in the manner of what affects them.
Build contents: The idea of reverse marketing is to be less pushy. Contents drive customers. Invest in your content. You might have to hire content writers.
Be in touch: When customers visit your website or blog, you can use that means to collect their data (address, phone numbers, and emails). You can occasionally send them emails about product promotion going on in your brand.
Reverse marketing has been tried by many companies in the world today and has yielded success. Some examples have been listed above. Other examples include Nike and Walmart. Who can engage in reverse marketing? Any company is aspiring to make sales. Do you have any questions about reverse marketing? Or it would help if you had private teaching on it. Join The Black Sheep Community today!