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Understand Your Target Audience Before Investing In Marketing Campaigns

Understand Your Target Audience Before Investing In Marketing Campaigns

The goal of every single business in the world is to try and gain new custom. In order to do this, a company needs to market their products and/or services to their target audience.

What is shocking is that most businesses do not understand who their real target audience is, or how they are able to reach them. This is an integral part of your business plan. You need to understand who your target audience is before you spend a penny on marketing.

What Is A Target Audience?

Most business owners assume their target audience is any potential consumer that is likely to buy their products and/or services. This is not actually true.

To ensure marketing campaigns are as successful as possible a business needs to focus on potential consumers that are most likely to buy their products and/or services. Why? This will ensure that the conversion rate on marketing campaigns is as high as possible, which will lead to higher revenue and profit figures.

Who Spends The Cash?

Ask yourself, who are the ones spending the money? If you are unsure, check through your previous orders. By analysing sales data you will be able to understand the patterns in sales. Are you selling to mainly females? Do most of your customers live in London?

If you are unsure of the type of customers you really have, consider offering surveys in return for a small discount. You can ask customers about their age, employment income, location and even what qualifications they have. The more data you have about different customer segments, the better chance you have of marketing to that segment successfully.

Breaking Down Segments

You will be able to break down each of your customer segments into sub-segments. Maybe you want to see who orders every week, every month and just once a year. From there you could break down the segments into customers spending under £100 per order and customers spending over £100 per order.

By digging as deep as possible into the data you have collected you will be able to focus your campaigns. For example, if the customers spending under £100 actually spend an average of £76, you can give them a special offer to increase the size of an order basket. For instance, you could offer a 5% discount if they spend over £100.

What Are The Next Steps?

The next step is to see how specific customer segments react to different marketing campaigns. For this to take place you need two things; a marketing campaign and a way of tracking it. You need to try as many test campaigns as possible. After each campaign you can analyse the results. This will allow you to modify the campaigns so that different segments get different campaigns; the ones that have been proven to be most successful.

Of course, there some marketing tactics that will be suitable for all your customers. For instance, setting up and online websites and purchasing shop signs from places such as virodisplay. Do anything and everything that you can to promote your business.

About the author:

Alex is a professional writer that writes both blog posts and articles. Since 2007 he has been writing for high traffic blogs, some of which achieve 500,000 visitors per month. He has covered a huge variety of subjects including the likes of small business finance, marketing and business branding issues.

Published by Valentine Belonwu

My name is Valentine, founder of this site, an entrepreneur working as a moderator at Bizsugar a small business community news site. Connect with me on Google+ at Valetine Belonwu

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