The new darling of network marketing--long tail law

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19th century the end of 20th century, the Italian economist Pareto invented the "28 law" so far, by many traditional retailers as the "Mall Bible," for Pareto: In any group of things, the most important only accounted for a small fraction, about 20%, the remaining 80%, although the majority, but the idea of a secondary belief, "28 Law" was completely overturned until the first time the "Long Tail theory" was put forward by Chris, the editor-in-chief of Wired magazine.

Pareto has always believed that 20% of the community has 80% of the social wealth, most of the world's wealth to the hands of a very small number of people, no matter in any country, the distribution of wealth is always unbalanced. This has also created a lot of business enterprises think 80% of the company's profits from 20% of important customers, the remaining 20% of the profit comes from 80% of ordinary customers, who are willing to spend 80% of their resources on 20% of the key profits, from spending 20% of their resources on the average customer base of 80%. Of course, some of the traditional retail success, verify the "28 law" is correct, but we can really ignore the so-called 20%? The birth of the Internet, the emergence of "long Tail", "28 law" was completely overturned.

Let's take a quick look at what the long tail effect is. is very simple, in fact everybody sees, popular, what is known is the so-called "head", and often overlooked, not popular, personalized is the so-called "tail", and in the marketing industry on the "tail" of the excavation, can create a staggering profit and value, "small profit Market" Success allows us to slowly and fully recognize the long tail effect. "Although make very little money, but we want to make a lot of people's money", this is the long tail theory in the marketing world really meaning. So how do you make a lot of money? Tap into the larger market of potential customers, the more people forget related products to show, always get the favor of established customers.

A British climber in 1988 wrote the "hit the peak" of the Adventures of the book in 10 years after the success of the New York Times book best-selling list, and was adapted into a film documentary "Behind the Story." In the 10, a book that had already been forgotten, was returned to the new this is also the charm of internet marketing, Amazon site will be listed in the list of similar new books, and attached to the comments of other readers, so that this early oblivion in the vast sea of books once again have the opportunity to face the reader, and Amazon site is " Long Tail "The successful representative, Amazon has more than half of the sales are located in its list of 130,000 in the book, through the Internet, this space-free platform, the product is carefully divided, mining the majority of potential customers, to carry out the display of goods without restrictions. When it comes to this, many traditional businesses begin to spit, and retail outlets are limited both in terms of space and resources.

I want to sell clothes in the city's busiest pavement, I definitely choose the familiar brand, or 80% of the people can accept the style, I can not target a small part of the alternative, spend a huge amount of paved rent and the backlog of goods to sell and show and cater to a small number of people, the result is conceivable. Therefore, the long tail theory for retail owners really have a lot of concern, in this also have to mention the great advantages of Internet marketing-low-cost, High returns. Internet companies hardly need to Yahuo and bear huge store rents, only a small portion of the site maintenance costs, but also can greatly expand the variety of sales, payment and distribution cost of almost 0, you can put the long tail theory to the extreme, of course, "long tail" use must be cautious, it is best to ensure that costs do not increase with the increase in sales , the cost becomes the fixed value, the sales volume expands indefinitely, this is "the long tail" The essence, is also the network marketing essence.

Clever use of "long tail" a lot of pioneers, the Bank of Banks credit card success is typical.

In 2006, China Merchants Bank had more than 5 million credit card issuance, accounting for One-third of the total number of Chinese credit cards, and also broke the practice of "not making money in the first five years of the credit card business". Why is it that every bank is making a credit card? The author believes that the most important point is that the CMB credit card has a very strong pertinence, and each customer has a new definition, breaking the original simplification of the Customer group division, to the product life cycle to more detailed customer management, The bank believes that every forgotten customer is a powerful "long tail market", so that the bank has launched a fan card, Air card, Department card, business card, unlimited card, student card (young card) and platinum and so targeted special products, each customer and each product corresponding, The user's "tail" mining to the extreme.

Of course, this article began with the traditional retail in the "long tail" disadvantage, "long tail" more is aimed at the internet marketing of a new marketing concept, but the "long tail" on the "28" subversion also let us realize that any new things are temporarily able to bring us marketing ideas and profit value, as for "long tail" The subversion of the idea is to withstand the time of textual research, we wait and see. This article from Kunming website Construction (http://www.lyjtt.cn/view.asp?newsid=554) reprint please add a link, thank you!