When it comes to marketing, there is a very simple way to work out whether or not your approach is going to be effective. If you’re trying to talk to everybody, you’re going to have a difficult time reaching anybody. Vague and generic messages are far less likely to resonate with audiences than specific, direct communication – which is why knowing who your target audiences are and speaking to them specifically throughout all of your marketing efforts is so important.
Instead of trying to reach an entire market, your company should be using targeted marketing and putting energy into connecting with a specific, defined group within that market.
The types of target markets are often segmented by characteristics such as:
Demographics: age, gender, education, marital status, income level
Psychographics: values, beliefs, interests, personality, lifestyle
Business Industry: business sector or vertical
Geographic Areas: neighbourhood, area, city, region, country
Through this strategy of market segmentation, brands can get more specific about their target markets. They can focus on a small group of customers who will be most likely to benefit from and enjoy their products.
To give you an example, take a brand that sells homeware. Instead of marketing to the masses, they may focus solely on selling their products to new home owners. Or, they could choose to exclusively market to newlyweds. Both examples are smaller, more specific segments of the company’s potential market.
Target market segmentation is an extremely important thing for you to be considering for your business. It impacts advertising, as well as your customers’ experiences, branding, and business operations. When your company focuses on target market segmentation, you can do the following:
1. Speak directly to your target audiences
When people can relate directly to the information you’re putting out, they’re going to be more likely to buy from you, recommend your products and return to buy again. Brands with a variety of target audiences often struggle with creating marketing campaigns that speak directly to everyone within that total audience. When their customers are made up of different target groups, it’s difficult for the brands to speak to them all in a way that resonates at a personal level. Through target marketing, it’s simple for brands to overcome this – all they have to do is focus on creating messages for one specific audience at a time.
2. Attract and convert many more high-quality leads
When speaking directly to your target audience, converting them into customers is much more natural. You can address their need and how you are solving a problem for them. Your marketing is more likely to reach high-quality, qualified leads that will turn into paying customers.
3. Differentiate your brand from competitors
When you stop aiming to speak to every customer in your market and start to focus on a smaller segment of that audience, you will start to stand out from competitors in your industry. When customers can clearly identify with your brand and your unique selling propositions, they will choose you over a competitor that isn’t specifically speaking to them. You can use your positioning to make your brand unique. Take a look around and try to use different language to your competitors, something that communicates the outcome of what it is you’re selling.
4. Develop customer loyalty
The ability to stand out from competitors by reaching your customers on a more personal level creates longer-lasting relationships. When customers identify with your brand and feel like you are in-tune with their specific needs, they are likely to be more loyal to your brand and continue to do business with you over a longer period of time. Reward customers in some way, make them feel appreciated and make them want to buy from you again.
5. Improve your offering
Knowing your customers more intimately also helps you look at your products and services in a new way. Talk to them as much as you can. When you have a deep understanding of your target audience, you can put yourself in their shoes and see how you can improve your offerings. You can see what features you can add to better serve your customers. Or, a simple tweak to the purchase process may hit the spot.
6. Stay on top
Another benefit of using target market segmentation is that it helps your brand and team. Target marketing allows you to get more specific about your marketing strategies, initiatives, and direction of your brand. It helps you clarify your vision and get everyone in the company on the same page. There’s more direction when it comes to shaping upcoming plans for both marketing and the business as a whole. A focused approach helps you stay on top of your resources, time, and budget.
So, what do you think? Will you be taking a more targeted approach in your marketing efforts moving forward? Talk to us about how to set up effective target market segmentation, we’d love to hear from you.
Meg Fenn, Director of Shake It Up Creative