To understand the MORE is MORE principle and especially how viral cycle time is related to viral growth, read this insight.
This insight tells how increase in viral cycle time can lead to viral growth in customer engagement.
Tag: Customer Loyalty
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WHY are CHARISMATIC LEADERS able to COMMAND CUSTOMER LOYALTY?
Adopted from the following great insight shared by Simon Sinek
We are all drawn to charismatic great leaders and organizations who are good at communicating what they believe.
Their ability to make us feel we belong , feel safe and not alone is part of what gives them the ability to inspire us.
These are leaders who have the ability to draw us close to them in order to command our loyalty.
This results in us feeling a strong sense of BOND with these leaders and organizations.
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This quote explains the psychology behind “Loyalty”
Adopted from the following great quote of Simon Sinek..
“There are many ways to motivate people to do things, but loyalty comes from the ability to inspire people.”
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How the Idea Diffusion curve can serve as a radar to customer loyalty
The Idea Diffusion curve highlights the Innovators and early adopters as the ones who are not risk averse when it comes to trying out NEW products
These are ones who love experimenting and whose word of mouth truly matters
Thus a company who creates a new product should first try to impress and attract these two segments.These people by virtue of being subject matter experts spread word of mouth and in turn create loyal customers associated with a brand
All iconic companies have one eye on this curve to serve as a guiding star for customer loyalty
Adopted from Simon Sinek’s Start With Why
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What has the “Idea Diffusion Curve” to do with “Customer Loyalty”?
The Idea Diffusion Curve popularized by Everett Rogers is a bell curve with the following characteristics:
- First 2-3% towards the left consists of “Innovators“
- Next 14% consists of “Early Adopters“
- Next 34% consists of “Early Majority“
- Next 34% consists of “Late Majority“
- Finally the 16% consists of “Laggards“
Innovators and Early Adopters are those who are willing to experiment with new products.These are people who are regarded as experts in their respective industry and their “word of mouth” leads to convincing the “early majority” as well as the “late majority”.
The “late majority” & “laggards” are highly rational people who think a lot before experimenting with a product.
So in order for a company’s product to become revolutionary they should always target the “innovators” , “early adopters” who are loyal towards a product and are honest enough to spread the “word of mouth” to the masses.
The right side of the curve consisting of “late majority” & “laggards” are never loyal and shift based on situation and needs.
Thus the “Idea Diffusion Curve” gives a fair enough idea with respect to influencing “Customer Loyalty”
Adopted from Simon Sinek’s book Start With Why