Masterclass: Build Your Tribe

Summary

The video script delves into the concept of building a loyal customer base through exclusivity and community, using luxury car brands like Ferrari and Lamborghini as examples. It emphasizes the importance of creating a 'tribe' around a brand, where customers are not just buyers but promoters and protectors of the brand's value. The speaker advises understanding the buying patterns and behaviors of your target market to ensure repeat business and long-term success, highlighting the pitfalls of being a 'middle-of-the-road' product and the benefits of positioning at the extremes of the market—either as a premium brand or a discount leader.

Takeaways

• 🏎️ Luxury car brands like Lamborghini and Ferrari create a sense of exclusivity by requiring customers to own a certain type of car before being invited to purchase others.
• 💼 Building a business to foster repeat business is essential for scaling and maintaining customer loyalty.
• 🛒 The concept of removing prices from products can create intrigue and exclusivity, attracting customers who understand and value the product without needing to know the cost upfront.
• 🔊 Car manufacturers like Lamborghini design their vehicles to have distinct sounds to attract attention and create a memorable brand experience.
• 🚗 Ferrari's V12 configuration places the engine in the middle of the car, creating a unique driving experience and a recognizable brand feature.
• 🚫 Limited edition releases by car manufacturers are a strategy to create exclusivity and drive repeat purchases among existing customers.
• 💎 Naming new products with unique and aspirational names can add to their appeal and create a sense of prestige and desirability.
• 👥 Building a community or 'tribe' around a brand helps to create a loyal customer base that will support and promote the brand.
• 🤝 A tribe, in the context of business, is a group of customers who share the same beliefs and values, and are invested in the brand's success.
• 🏷️ When building a tribe, the brand's community takes ownership of the brand identity, and their input becomes crucial for product and market strategy.
• 💰 Members of a successful tribe are willing to pay the full value for a product, indicating their understanding and appreciation of its worth.

Q & A

What is the prerequisite for being invited to own a certain type of Lamborghini or Ferrari?

To be invited to own a certain type of Lamborghini or Ferrari, one typically needs to have owned a specific type of car from their lineup before, which is part of building a repeat business.

Why would a company remove the price from a product on the shelf?

A company might remove the price from a product on the shelf to create a sense of exclusivity and to appeal to customers who understand the value of the product and are not concerned about the price.

What does the speaker imply about the sound of different sports car brands?

The speaker implies that each sports car brand has a distinct sound that is part of its identity, such as the high-pitched tenor sound of Ferraris and the high wailing sound of Lamborghinis.

What is the significance of having the engine in the middle of a Ferrari V12 car?

The mid-engine configuration of a Ferrari V12 places the engine behind the driver, allowing for better weight distribution and handling. It also enables the engine to be displayed under a glass cover, showcasing it to onlookers.

How does Ferrari create opportunities for repeat customers?

Ferrari creates opportunities for repeat customers by releasing limited editions of their cars and making ownership of these exclusive models contingent on owning previous editions.

What does the speaker suggest is the best way to build a business?

The speaker suggests that the best way to build a business is to focus on creating repeat business by offering exclusive products and building a community around the brand.

What is the importance of building a 'tribe' around a brand according to the speaker?

Building a 'tribe' around a brand is important because it creates a community that shares the same beliefs and values, which can lead to repeat sales and strong brand loyalty.

Why did Gap change their logo back after initially changing it?

Gap changed their logo back because their tribe, or loyal customer base, expressed strong dislike for the new logo, demonstrating the power of the community in defining a brand's identity.

What are the three rules for building a tribe according to the speaker?

The three rules for building a tribe are: 1) Once you build a tribe, the tribe owns the brand, not you. 2) Tribes have a demonstrable track record of repeat sales. 3) Members of the tribe are always willing to pay for the value of the product immediately.

Why do some property sites not show the price of the properties they list?

Some property sites do not show the price because they are marketing to a clientele that understands the value of the property and does not need the price to be stated, indicating exclusivity and the assumption that the buyer can afford it.

What does the speaker suggest is the worst place to be in the marketplace?

The speaker suggests that the worst place to be in the marketplace is the middle layer, where products are sold based on utility and price, as there is always someone cheaper, leading to a focus on price rather than brand or community.