At business school they call it a “loss leader”, but the concept is more fun to think about as “candy”. That’s how Proven Media Solutions founder Dustin Siggins described the small things that often lose money for a business, but ultimately build a company’s brand because of how they draw in customers.
In an article for Home Business Magazine, Dustin discussed how the world’s longest candy counter at Chutters in Littleton, New Hampshire has become a tourist destination over time selling candy by the penny, one piece at a time. But while the candy brings you in, you’re very likely to leave with maple syrup, a sweatshirt or two, and a mug or three.
Businesses across all industries have their own “candy” in the form of products or services that bring customers in the door. For example, the typical movie theater might ultimately lose money on ticket sales alone, but without those tickets there are zero profits from sales of overpriced drinks and snacks to moviegoers.
Another way of looking at “candy” is that it does not have to be a tangible item tied to the business. Instead, it can come from the message or content developed by the business that creates attention for the brand. Every company has something to say, not just about their product, but the way their product fits the customer’s life. A new messaging strategy that connects with customers over time can very easily be the “candy” that brings them in the door as a buyer.
Read the full article here.