Bahaa Abdul Hussein is a fintech expert who shares his knowledge through the articles on this website.
The long tail is the use of business strategy to yield profits by selling low volumes of hard-to-find products to customers, instead of selling them in huge quantities to a few customers. Selling in bulk at a reduced price increases profit margins. This is a unique selling proposition (USP) of online eCommerce marketplaces like Amazon.
Long tail enables companies to sell bulk quantities in a go. They can set the items on sale, and expand their customer diversity. They do not consider customer demographics, or intended audience but only the reach of their offer. This makes them cover several different consumer segments that have the potential to yield a profit over time.
Long tail marketing strategy is selling large quantities of products and services at a lower price. There is no niche segment to cater to. The supply is increased in accordance to the demand. This increases profit margins in the long run.
List of successful long-tail marketing business examples
Companies like Amazon, and Netflix are popular examples. Netflix carries out less popular titles for free which fetches watch time and attracts niche visitors. Amazon sells over 350+ million products which are in low demand at a less price. This eventually exceeds the sale of the items that are in high demand. Hubspot Blog makes use of long-tail keywords to attract user traffic to the website. It produces a lot of content voraciously to attract audiences of all age groups.
How can you increase long-tail profitability? Why should you invest in a long-tail marketing strategy?
Compared to the traditional marketing and distribution channels, now there is less shelf space, and marketers wish to earn profit in less time. Producers focus on their marketing resources and target best sellers. This approach carries chances of risk but they also expect an occasional hit, with a chance of rich dividends.
The shape of consumption says that we can deduce that the volume of sales goes up when the marketplaces offer a vast selection of their products, at an easy-on-pocket price. This keeps transactions in good shape. So instead of becoming bulkier, the tail becomes lean, flat and long. But it keeps growing.
Some products can become individual best sellers and popularity becomes off the chart. To keep up, marketers must understand the factors responsible for the growing business volume, and why a large number of customers venture into the long tail. This will clearly indicate the degree of satisfaction after the purchase.
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