“Quality over quantity” is extremely relevant in today’s marketing world, especially when considering how granular it can get with audience targeting. Throwing a net too widely can not only be expensive, but wasteful. Marketing dollars targeted to the right audience will generate the largest return on investment (ROI). So, how is the right target audience determined for a product or service?
Follow these 5 steps:
- Decipher Customers
- Interpret Customer Database
- Evaluate the Product or Service
- Specify Demographics
- Analyze the Target Market
Take a look at current customers and ask these questions: Are customers male or female? How old are they? Are they local or overseas? How much money do they make? Maybe they’re passionate about a cause?
Look for commonalties and begin grouping customers together. (A process called customer segmentation.)
Interpret Customer Database
Group customers together who have bought recently, buy frequently and spend the most when they buy. From here, segment the targets. With quality leads in mind, ask who are the biggest spenders? Do they buy once, twice or more times a year? Analyze current customer spending habits to determine who will provide the biggest bang for the buck. When investing in advertising, target an audience who will provide the biggest return.
Evaluate the Product or Service
What does a particular product or service offer to the customers? How do customers benefit from using them? By understanding the short and long-term benefits to customers, dig deeper into their psyche and better define who they are.
From the benefits of the product or service and the commonalities of customers, specify the demographics to target. What age fits best with the offering? Gender? Income level? Occupation? Family status? Location? Survey the demographic group and question whether they would purchase the product and service. If the answer is yes, it’s the right audience.
Analyze your Target Market
Before fully committing to the new target market, check to make sure there are enough people in this market to be profitable. Also, check that the target market can afford the product and will be able to access them.
Following these steps can help to not only identify the target market, but allocate marketing expenditures wisely to the specific group that will lead to revenue…and success! Not sure where to start or need some guidance, we’re here to help. We have a team of experts who conduct market research and strategic planning. Start a conversation with us today!