{"id":6336,"date":"2024-03-05T16:58:39","date_gmt":"2024-03-06T00:58:39","guid":{"rendered":"https:\/\/puginteractive.com\/?p=6336"},"modified":"2024-03-05T16:59:56","modified_gmt":"2024-03-06T00:59:56","slug":"pug-pyramid","status":"publish","type":"post","link":"https:\/\/puginteractive.com\/pug-pyramid\/","title":{"rendered":"The PUG Customer Pyramid"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"6336\" class=\"elementor elementor-6336\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-8090b5f elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"8090b5f\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-2e0b531\" data-id=\"2e0b531\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-21716c3 elementor-widget elementor-widget-image\" data-id=\"21716c3\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.20.0 - 26-03-2024 *\/\n.elementor-widget-image{text-align:center}.elementor-widget-image a{display:inline-block}.elementor-widget-image a img[src$=\".svg\"]{width:48px}.elementor-widget-image img{vertical-align:middle;display:inline-block}<\/style>\t\t\t\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"1371\" height=\"783\" src=\"https:\/\/puginteractive.com\/wp-content\/uploads\/2024\/03\/PUG-Pyramid.png\" class=\"attachment-medium size-medium wp-image-6337\" alt=\"\" srcset=\"https:\/\/puginteractive.com\/wp-content\/uploads\/2024\/03\/PUG-Pyramid.png 1371w, https:\/\/puginteractive.com\/wp-content\/uploads\/2024\/03\/PUG-Pyramid-768x439.png 768w, https:\/\/puginteractive.com\/wp-content\/uploads\/2024\/03\/PUG-Pyramid-800x457.png 800w\" sizes=\"(max-width: 1371px) 100vw, 1371px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-a68326c elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"a68326c\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-e9f5bf2\" data-id=\"e9f5bf2\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-161f1cf elementor-widget elementor-widget-text-editor\" data-id=\"161f1cf\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.20.0 - 26-03-2024 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#69727d;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#69727d;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\t<p><strong>by <a href=\"https:\/\/www.linkedin.com\/in\/stevebocska\/\">Steve Bocska<\/a><\/strong><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-623c66f elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"623c66f\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-2f0656e\" data-id=\"2f0656e\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-b7e9abe elementor-widget elementor-widget-text-editor\" data-id=\"b7e9abe\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>The Customer Pyramid model, popularized by Zeithaml, Rust, and Lemon, has long been a cornerstone concept in the world of customer relationship management. More of a two-dimensional triangle than a true pyramid, the model provides a simple framework for segmenting customers based on profitability and loyalty.&nbsp;<span style=\"font-size: 1.1875rem;\">At the top of the pyramid are Platinum customers. In this coveted tier, customers generate high profitability combined with strong loyalty, making them the most valuable assets for any business. Below them are the Gold customers who are high on profitability but may not be as loyal. Iron customers are found one level below Gold, offering moderate profitability and loyalty, while Lead customers form the base, contributing the least in terms of both metrics. The actionable strategies offered by this model help businesses to not just identify but also to manage and elevate different customer segments.&nbsp;<\/span><span style=\"font-size: 1.1875rem;\">&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">At PUG Interactive, we expanded on the concept of the customer pyramid with an evolved approach designed to better address the depth and breadth of complex brand-customer relationships today. Instead of Zeithaml\u2019s approach of prioritizing economic transactions as the primary metric of customer value, PUG\u2019s model adopts a broader perspective, recognizing that the health of brand-customer relationships is contingent upon a multitude of factors. This includes not only transactions but also online activity, real-world actions, social activity, brand sentiment, and more. This multifaceted approach underscores the importance of engaging customers across various platforms and touchpoints, reflecting a more nuanced understanding of what it means to build and maintain loyalty in the digital age.<\/span><\/p>\n<p><\/p>\n<p><span style=\"font-weight: 400;\">The PUG model&#8217;s emphasis on a broad range of engagement metrics aligns with contemporary research in the field of marketing, which highlights the shifting paradigms of customer engagement. The modern customer engagement model extends beyond the transactional, incorporating customer&#8217;s engagement through digital, social, and physical interactions. In PUG\u2019s pyramid, true brand advocacy emerges from a composite of interactions that collectively contribute to a customer&#8217;s overall experience with a brand. Moreover, PUG\u2019s Pyramid resonates with the concept of &#8220;customer brand engagement&#8221;, defined as the level of a customer\u2019s cognitive, emotional, and behavioral investment in specific brand interactions. This concept is exemplified in the PUG model through its segmentation of customers from bronze to platinum levels, moving from fringe to deeply engaged customers who identify with the brand. This segmentation illustrates that engagement is not a monolithic construct but rather a spectrum of involvement and affinity with a brand.<\/span><\/p>\n<p><\/p>\n<p><span style=\"font-weight: 400;\">PUG Interactive&#8217;s Customer Pyramid model introduces a novel approach to customer segmentation that diverges significantly from traditional models based on spending or transactional value. This innovative segmentation method categorizes customers into four distinct tiers: Bronze, Silver, Gold, and Platinum. These tiers are defined not by the monetary value a customer brings but by their level of engagement and relationship with the brand, ranging from fringe customers (Bronze) to those who self-identify with the brand (Platinum).&nbsp;<\/span><span style=\"font-size: 1.1875rem;\">The segmentation approach in PUG\u2019s model aligns with a digital era that has transformed customers from passive recipients of marketing efforts into active participants in brand storytelling and value creation. This shift necessitates a segmentation strategy that accounts for various forms of customer engagement beyond mere transactions. PUG\u2019s model effectively responds to this need by considering a range of interactions, from online activity and social media engagement to real-world actions, thus offering a more holistic view of the customer-brand relationship.<\/span><\/p>\n<p><\/p>\n<p><span style=\"font-weight: 400;\">This segmentation approach also aligns with the concept of engagement-based customer segmentation which recognizes customers&#8217; multidimensional interactions with a brand, suggesting that engagement-based segmentation can lead to more effective and personalized marketing strategies. By categorizing customers into tiers based on their engagement level, PUG\u2019s model facilitates the development of tailored marketing efforts designed to meet the specific needs and preferences of different customer segments.<\/span><\/p>\n<p>Maximizing the size of the Gold and Platinum tiers within PUG Interactive&#8217;s Customer Pyramid model is pivotal for cultivating lasting customer loyalty. Customers situated in the lower tiers, such as Bronze and Silver, often exhibit a level of indifference towards brands. Their engagement is more casual and transactional, making them more prone to defection or swaying by competitors&#8217; offerings. These customers, while valuable, have not yet developed a deep or emotional connection with the brand, which is essential for true loyalty.<\/p>\n<p><\/p>\n<p>In contrast, customers in the Gold and Platinum tiers have crossed a significant threshold. They are not just loyal; they are advocates and deeply connected to the brand&#8217;s values and community. Their loyalty is less about transactions and more about the relationship and identity they share with the brand. They are less susceptible to competitive offers and are more likely to repeat purchase, engage in positive word-of-mouth, and contribute to the brand community. This transition from transactional loyalty to emotional and community-based loyalty is what makes them invaluable.<\/p>\n<p>Therefore, the larger the Gold and Platinum segments of the pyramid, the more robust the brand&#8217;s customer retention and overall loyalty. These customers form the core of the brand&#8217;s community, driving both direct and indirect value. Directly, they contribute to sales through repeated purchases and premium engagements. Indirectly, they enhance the brand&#8217;s reputation, attract new customers through advocacy, and provide valuable feedback that can guide the brand&#8217;s evolution.<\/p>\n<p>Strategies to grow these top-tier segments focus on personalization, recognition, and providing value that transcends the product or service itself. It involves creating exclusive experiences, offering opportunities for deeper involvement with the brand, and recognizing and rewarding their contributions. By focusing on the emotional and community aspects of the brand relationship, companies can transform indifferent customers into loyal advocates, thereby ensuring a stable and engaged customer base that is resilient in the face of competition and market changes.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>by Steve Bocska The Customer Pyramid model, popularized by Zeithaml,<\/p>\n<div class=\"read-more-wrapper\"><a class=\"more-link read-more-link\" href=\"https:\/\/puginteractive.com\/pug-pyramid\/\">Read More<\/a><\/div>\n","protected":false},"author":1,"featured_media":6337,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[93,140,60,70],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ 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