Episode 54: Long Tail Product Strategy w/Giulia Greppi

20 April, 2021 / Host: Magnus Billgren

Unlocking Value: The Power of Long Tail

In the dynamic world of business, there has long been a widely accepted belief that 20% of customers drive 80% of the profits. This conventional wisdom has shaped the way businesses operate and design their products. However, as the digital landscape evolves, new opportunities emerge, challenging this traditional notion and paving the way for a transformative approach known as the long tail product strategy.

Giulia Greppi, a trailblazer in the field, has shattered the myth by introducing innovative products into the B2B environment. Surprisingly, it was the remaining 80% of customers that generated more than 100% of the profits. This remarkable feat raises important questions about the nature of customer profitability and how we can unlock untapped potential in our businesses; let's explore this further in this recap of the Productbeats Show.

Unleashing the Potential of the Long Tail

Giulia presents a compelling argument for the value of this overlooked segment, emphasizing that the long tail of customers holds immense untapped potential. While it may be tempting to focus solely on the top 20% of customers, businesses can unlock significant opportunities by shifting their attention to the broader customer base.

By serving smaller customers in the long tail, businesses can reap numerous benefits. Firstly, there is a vast market of underserved customers in this segment, presenting a blue ocean of opportunities where competition is limited. By strategically targeting these customers and tailoring products to their specific needs, businesses can position themselves as the go-to solution providers in their niche.

However, Giulia acknowledges the challenges inherent in catering to a diverse and extensive customer base. Balancing complexity and applicability becomes crucial in this context. Businesses need to strike a delicate balance between customization and scalability to effectively serve the long tail.

Tailoring Solutions for Small Customers

Unlike their larger counterparts who often demand extensive customization and integrations, smaller customers seek simplicity, efficiency, and self-sufficiency in their interactions with businesses. Recognizing this distinction, Giulia emphasizes the importance of making the product the center of focus when serving smaller customers.

Digital solutions emerge as a game-changer in enhancing the experience of smaller customers. Leveraging technology, businesses can provide real-time digital alerts and empower customers with independent actions, allowing them to have more control and flexibility in their interactions. By embracing digital channels, businesses can deliver seamless experiences that cater to the unique preferences and expectations of small customers.

Standardization of processes and products also takes center stage in serving smaller customers effectively. Rather than offering extensive customizations or integrations, the focus shifts towards building a robust, high-quality product that meets the common needs of the target market. This standardized approach streamlines operations, reduces complexity, and enables businesses to scale efficiently while maintaining cost-effectiveness.

Simplified pricing structures become a key driver of success when catering to smaller customers. By adopting fixed transactional rates, businesses can provide transparent and easily understandable pricing models that benefit both the sales process and customer understanding. Clear and straightforward pricing helps build trust and confidence, facilitating smoother transactions and fostering long-term customer relationships.

Challenges of Targeting the Long Tail

One of the key challenges businesses encounter when targeting the long tail is the need to establish trust with smaller customers who may be unfamiliar with the brand or have limited exposure to its products or services. Building trust goes beyond simply offering a quality product; it involves cultivating a reputation for reliability, transparency, and exceptional customer service. Giulia underscores the significance of investing in building a strong brand presence and reputation to instill confidence in smaller customers.

By going beyond the product and investing in building a strong brand presence, adapting sales strategies, streamlining the sales process, simplifying approvals and negotiations, and accelerating implementation and revenue generation, businesses can effectively address these challenges and unlock the immense potential within the long tail of customers. Nurturing trust and streamlining sales are pivotal in capturing the loyalty and satisfaction of smaller customers and maximizing the opportunities presented by this valuable customer segment.

The Benefits of Long Tail Strategy

One of the key benefits of adopting a long tail strategy is the potential for shorter sales cycles and simplified negotiations. Smaller customers tend to have streamlined decision-making processes, enabling businesses to close deals more quickly. With fewer stakeholders involved and less bureaucracy to navigate, sales cycles can be significantly reduced, resulting in faster revenue generation and accelerated business growth. By efficiently serving smaller customers, businesses can unlock a valuable revenue stream and capitalize on the agility and responsiveness of this customer segment.


  • Embrace the Long Tail: Don't overlook the value of the remaining 80% of customers. Targeting smaller customers can lead to untapped market potential and increased profitability.
  • Tailor Solutions: Shift the focus from extensive customizations to building a strong, standardized product that can be adapted to smaller customers' needs. Leverage digital experiences and simplified processes to enhance customer satisfaction and scalability.
  • Streamline Sales Processes: Adapt your sales strategies to cater to smaller customers. Reduce sales cycles, simplify approvals and negotiations, and accelerate implementation to generate faster revenue and foster business growth.

As we conclude our discussion on the power of long tail product strategy, it's important to highlight the significance of continuous learning and professional development in the field of product management. If you're passionate about honing your skills and staying ahead of the curve in this ever-evolving industry, consider enrolling in The Productbeats Product Management Certification Program. From product strategy and roadmap development to user experience design and agile methodologies, The Productbeats Certification Program covers a wide range of essential topics, ensuring that you acquire the skills and knowledge necessary to excel in today's competitive landscape. Join a vibrant community of product professionals, engage in collaborative learning, and gain access to valuable resources that will empower you to drive innovation and deliver exceptional products.
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