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From Interruption to Engagement

Customer Advocacy drives Growth
Posted by Alan Moore, 16 September 2004
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Marketing

In 1972 New Balance produced 30 handmade running shoes. Today worldwide sales are over 1.3bn pairs a year.

Greg Gordon of the Financial Times reports that in the US, New Balance is only second to Nike in terms of footwear sales.

Gordon writes

New Balance is probably the only brand to unite boardroom and catwalk, the Olympic stadium and student campus. New Balance is the shoe of choice for the coprorate cognoscenti, and the choice of gold medalists, fun runners, fashion folk, busy mums and radical vegans. It's even the brand or rock aristocrats such as Coldplays Chris Martin and members of the the Red Hot Chilli Peppers

Pretty amazing when the company eschews overt marketing communications.

It's unerring focus of attention is to uncompromised quality, which has defined its success. And generated a very loyal customer base.

And in an age of NO LOGO anti-corporate exploitation rage, New Balance has also become the ethical shoe.

Manufactured in the US and Cumbria the company produces 40 pairs of shoes per worker per day. Whereas the industry norm in South East-Asia is 3.5 pairs a day.

Jim Davis interviewed by Gordon says

we're not selling an ideal of perfection refracted through celebrities or world-class athletes, we're selling shoes for real people, that's where the hype comes from – satisfied customers. Our market is discerning people, not the 12 -13-year-old kid who's got to be seen in the latest Nkes. We make sportswear for discriminating consumers – that's our USP

Davis I suspect has embued his company with a very special vision, which is not corporate mission statement blandness. He has unlocked the true potential of his company through integrity.

Further his charity work, putting profits of the company into things he believes in, underwriting the supply of free New Balance shoes to thousands of young West Africans rather than expensive ad campaigns. Is what he calls "good corporate citizenship."

Davis believes these activities generate additional "value" around his products and aggregates customer advocacy for New Balance.

In a world where we daily fight for profits and growth, customer advocacy is one of the keys to success. SMLXL have developed a series of workshops designed to help companies understand what are the drivers to enhanced customer advocacy.

we're always happy to talk.

New Balance

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