September 14, 2017
Law of diminishing marginal utility states that with the consumption of every consecutive unit of a commodity, the satisfaction derived from it decreases. You must be wondering how this knowledge can be applied to online marketing. Here is how. When a consumer buys a certain product, each time they consume it, the satisfaction derived from the product will be less than the previous unit of consumption. We can deduce from this logic that the first unit is the most beneficial to the consumer, but which unit is the most profitable for the supplier? It seems the first one but it is actually the second helping.
Let me explain with an example. Suppose I am selling cosmetics. A first-time customer buys a lipstick from me. She likes the lipstick and returns for more. Now, this is the point where I can make maximum sales. Due to the high satisfaction derived from the first unit, the customer is easy to convince to buy more. After the second sale, the utility derived from the product will be less than the first time and so on for the third time and a fourth time may not even come. So if a customer bought one lipstick the first time and liked it, she is likely to by two to four the second time. That is up to four times the first sale. The third time she will probably buy one. She may not return for fourth time, having reached the point of negative utility. Negative utility is the point where the consumer does not derive any satisfaction from the product and cannot consume another unit of it. Therefore, my window to make maximum profits is with the second-time customer. They are the golden geese of any business. If handled correctly they can give multiplied profits.
The same theory can be applied by seo companies. The top seo companies always try to engage the returning visitors. These companies can extract the best reviews from such traffic. They are likely to give good reviews on their second visit to the page. This means the utility of the content was high enough on the first visit and the web page is worth liking.
There is a catch however. Due to the law of diminishing marginal utility, on the second visit, the page may not seem as appealing as the first time. What can an seo company do to avoid falling in this trap. Here are a few ideas-
Reinvent the content frequently. It is like changing the flavor of the same candy. The consumer can get bored of one flavor, but the new flavor keeps them engaged. It will keep them coming for more, which is the key tactics for a successful seo campaign.
Do not push the same products for a long time. Keep changing the focus of the visitors to different products on the page.
Add new testimonials and reviews regularly.
Include new links frequently.
Keep the social media channels interactive and engaging.
If you can avoid this catch 22 situation, you can get best reviews for your firm. It is an important factor of any seo strategy to manage the returning customers in the right manner. Focusing on the right techniques and evolving the content of your page can help you achieve this goal.