The average U.S. Corporation loses half its customers every five years. The way that marketing addresses these problems is making them worse. Young executives are given a brand to manage and typically make quick fixes such as price promotions to prop up sales, helping their careers but damaging the brand.

They view advertising as an expense, not an investment, and push to create short-term sales. Price strategies erode brand equity sending such messages as, “Our product or service isn’t worth paying full price for,” and “All products and services are the same.” Customers are trained to buy when the price drops, regardless of brand, forcing a downward spiral in price and profit.

Successful Hudson Valley organizations understand the “evolution of their customer” and that 200 years ago people bought what was sold either because they desperately needed it or because it was the only thing available.

A hundred years later, retail had taken over with decentralized outlets for manufacturers. Services were offered on a more competitive basis and everyone marketed directly to customers through the radio, newspapers, and newly-introduced television.

Then came the baby boomers, who rebelled against everything, including brand names. They didn’t trust anyone over 30, and they didn’t buy what those folks bought.

Harry S. Dent Jr. explained that consumer spending reaches a peak at age 47 and then begins to decline. Boomers are turning 50, and as they stop spending, we see a mad scramble for customers. The new smart shopper, that American business practices have created, is very particular about what they want.

They wait until things go on sale, whether it’s clothing, travel or eye surgery and then make the brand decision. This results in many sellers competing for a single buyer, usually at the point of purchase, and more often than not, by lowering price. This gives all the power to the customer and reverses “transaction evolution.”

The key to reinventing marketing lies in understanding brand value. The result has been that while people are more aware of ads than ever, they are less aware of the brands that are being advertised. By using coupons, rebates, or sales, Hudson Valley organizations, in effect, pay the customer to buy. We train customers to expect a sale and not buy until there is one.

Your best customers buy your brand regularly, whether it’s on sale or not and use your product or service on a regular basis. They tell friends about you, forgive you when you make a mistake, know your brand, where it’s distributed, and some of your employees. Best customers won’t switch unless you abuse them.

Rank all of your customers according to what they spend with you and establish a program of incentives exclusively for your “best customers” and promote it aggressively. Hudson Valley organizations realize that to get loyal customer behavior, they need to identify and take “special care” of their best customers.

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