Unlocking the Power of the Starving Crowd Theory in Marketing
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Chapter 1: Introduction to the Starving Crowd Theory
A pivotal insight I gained about marketing didn’t come from my professional experiences, but rather during my academic journey. My marketing professor, known for his unexpected questions, posed an intriguing query to our class:
“Suppose you were to launch a pizza restaurant. What steps would you take to secure your brand's success?”
The responses varied, with students suggesting things like:
“Superior ingredients!”
“Lower prices!”
“More unique offerings!”
To which he calmly responded:
“You aren’t entirely mistaken. Each of these ideas has merit — to some extent. However, the simplest and perhaps most effective route to success is to identify a starving crowd.”
According to him, this theory is incredibly powerful, serving as marketing's ultimate cheat code. Yet, there’s an important caveat — a potentially perilous one. Below, we will dive into the essence of this theory, how to effectively utilize it, and crucial pitfalls to avoid.
The Essence of the Starving Crowd Theory
The starving crowd theory posits that the most effective strategy is to locate a group of individuals who have a strong desire or need for a specific product and simply provide it to them. This approach is far more advantageous than attempting to generate demand from scratch.
Consider the case during the pandemic. When COVID-19 struck, consumers flocked to stores to hoard toilet paper. Did the brands or retailers change their offerings? Not at all. They merely met the existing demand and reaped the financial rewards — they could have even raised their prices significantly without losing sales.
This illustrates the strength of the starving crowd theory. Often, marketers begin with a product and try to artificially create demand. While this may succeed in rare instances (like with the iPhone), most will find that there’s no inherent need for their product.
In contrast, the starving crowd theory assures that demand is already present; your task is merely to identify it.
So, how do you find your starving crowd? Here’s my approach:
Step 1: Conduct Thorough Research
There’s no shortcut here — and admittedly, it’s not the most glamorous strategy — but research is essential. It enables you to pinpoint a reliable customer base that will generate consistent demand.
How can you initiate this research? Fortunately, it can begin from virtually any point and can be scaled according to your requirements. For instance, when my brand was just starting, we relied on online surveys to gauge market demand. We posed straightforward yet insightful questions like:
“What products do you use regularly?”
“What issues do you encounter with XXX?”
This helped us hypothesize which products would likely attract demand, setting us on the right path for development. As we gained traction, we invested in more in-depth research methods, such as focus groups and purchasing consumer insights from data firms like Nielsen and Euromonitor.
There’s no excuse for not gathering quality data. If you have a social media presence, you can easily analyze your metrics or directly engage your followers to solicit feedback. Ultimately, this research will unveil audiences you may not have previously recognized, propelling your brand to new heights.
Step 2: Addressing Pain Points
The most precarious position is believing your brand is entirely satisfactory to your customers. It’s a misconception — no brand ever achieves this. Even leading companies like Nike and Gucci continuously innovate and enhance their offerings to meet customer expectations.
It all boils down to pain points — everyone has them. Instead of lamenting your customers’ dissatisfaction, view it as an opportunity for improvement. For example, when we launched a men’s hairstyling product, initial interest was underwhelming. It was only after conducting a focus group that we discovered the challenge: the product was difficult to wash out, which was a significant concern for our target audience.
We quickly went back to the drawing board, and within a month, we had a revamped product that was easier to rinse off. Demand surged, and it soon became one of our top sellers. My point is that pain points serve as gateways to identifying new audiences eager to embrace your product once their needs are met. Often, these pain points are right in front of you; you just need to recognize them. Always strive to uncover them using the research methods that best align with your brand.
Why This Approach Can Be Risky
If the starving crowd theory is such an incredible cheat code, why doesn't everyone adopt it? Technically, anyone can implement it, provided they have access to research and a willingness to engage with their customer base.
However, the potential danger lies in missing your target. Starving crowds often represent niche markets, meaning your audience is narrower. If you fail to address their needs, the consequences can be severe.
To mitigate this risk, consider utilizing A/B testing. This method involves conducting experiments with different groups — in this case, various target audiences — to determine which approach yields the best results. For instance, if you have multiple pain points to address, you could select the two most significant ones based on your research and test your marketing strategies against them. This way, even if one group doesn’t yield the expected demand, you’ll still have the other to rely upon.
Conclusion
The starving crowd theory is elegant in its simplicity, encapsulating the essence of marketing. Identify existing demand and fulfill it. Avoid complicating matters or attempting to create demand where it doesn’t exist. What are your thoughts on this marketing strategy?