Strategic Marketing in a Long Tail Economy

The Long Tail economy—it sounds so Silicon Valley, Web 2.0, business jargony. Is that really something the grounded, no-nonsense business owner needs to be concerned with? Could be.

Chris Anderson, editor-in-chief of Wired magazine, introduced the term “The Long Tail” in 2004 to define the ability the Internet gives businesses to sell a viable volume of hard-to-find items to specifically interested customers. This model is in stark contrast to traditional sales strategies that center on selling large amounts of mainstream products to just a few clients (80 percent of the business to 20 percent of the clients). In Anderson’s book, The Long Tail: Why the Future of Business Is Selling Less of More, Amazon and Netflix are highlighted for their ability to get more than 25 percent, and trending toward 50 percent, of their business from little, niche, onesie-twosie, independent-type products that are not available in mass-market retailers like Borders, Barnes & Noble, or Blockbuster. While this can feel discouraging on the surface, there is plenty of room for unique products or services that have real value to take hold, grow, and become profitable.

Selling hard-to-find items to specifically interested customers requires a very deliberate and carefully crafted branding strategy. In creating a brand—your brand being every way in which you come into contact with your customer—start with a clear picture of how you want your customer to perceive your business. In most cases, successful Long Tail products are driven by purveyors who have created a deep reputation as knowledge leaders/expert practitioners in their fields. Think about how to get this done: lectures, blogs, forums, classes, whatever is applicable to become a leader in that community.

A brand needs an image, a feel, and an attitude. It is a lot more than a logo; it is a manifestation of your culture. It is everything from the product, packaging, fonts, and colors, to when and how the phone is answered. It is a look and feel that is consistent in everything the business does.

An image and perception are critical as you begin talking with your target customer. Find them, go to them, and speak to them. Attend conferences, comment on blog posts, connect using social media, or whatever works for you—just start talking. These conversations are going to be absolutely critical to making sure that your product is top-of-mind when your customers make their buying decisions.

Last step is your “storefront.” Where would your target customer look for products like yours? Independent retailers, trade magazines, referrals from trusted friends, or searching online… it all depends on where that client is most likely to look. Where customers are looking is where you need your products to be.

In many instances, Long Tail ventures will need to have a strong presence on the web. Search engine algorithms have adapted to Long Tail thinking, which means that they are more specific, and more pertinent. When consumers are looking for products or services, they no longer search for them in two to three keyword phrases; it’s gotten bigger and more specific. It’s not just finding a weight-loss solution anymore… these days, it’s a weight-loss program tailored for a 35-year-old computer scientist who plays golf on the weekends. Businesses operating in the Long Tail need to be optimized so that their communications and their presence are ideally positioned to meet the special needs of their specific customer.

If you have a unique product or service of value, there are plenty of opportunities to find an audience that is willing to not only listen to you but also to spend. So the challenge becomes locating and recognizing distinct target customers in the Long Tail without killing ourselves by spending too much time and money to reach them. The way to do this is to be strategic so that every step you take is part of a cohesive Long Tail branding strategy.