Customer loyalty is the holy grail of marketing. Customers who give you all their share of wallet, pass on the good word. But do they really exist?

My dad buys his clothes from a specialty menswear store in Adelaide, Miels One Five Four and has done so for many, many years.

It's not close to home. In fact it's 13kms away and almost a 30 minute drive. And he really doesn’t like shopping. He could be described as a ‘reluctant shopper’.

So why does he go there when there's many other retailers to choose from that are much closer. He'd bypass at least 10 stores along the way so he has plenty of choice. Miels One Five Four have developed a competitive edge.

What do they do for him?

B&T Media had a story yesterday on how Algorithm based targeting will replace traditional media planning.....who would have thought Advertising and Algorithm would share the same sentence...?

The Pareto Principle (suitably hijacked by Advertising Executives in the early 1960’s) states that 20% of customers deliver 80% of sales. This can be extended to 80% of profits in most instances, and is now broadly accepted in all areas of business – from Cat Food to Industrial Packaging, Airlines to Charities, Online Auctions to Mobile Phones.