Try two new targeting approaches that are bound to boost growthEveryone’s marketing strategy needs a tune-up now and then. If your campaigns are not getting the results they once were, maybe it’s time to try something new. Even if sales are rolling along, now is a good time to try new things and keep it fresh. Start by creating a visual grid of your customer segments. What are the primary ways to group your customers? Within each of those groups, who are the customers bringing in the highest value? The least value? Somewhere in the middle? Your grid might look something like this:
Your customer segments will vary based on your type of business. If you are a hair salon, for example, your segments might be students, professionals, and stay-at-home moms. Or you might group your customers based on the types of services they buy, such as haircuts, highlights, or perms. You can change or reshuffle your segments at any time. Your customer segments will vary based on your type of business. If you are a hair salon, for example, your segments might be students, professionals, and stay-at-home moms. Or you might group your customers based on the types of services they buy, such as haircuts, highlights, or perms. You can change or reshuffle your segments at any time.
Next, divide each segment into three boxes by value. This, too, can be done different ways. You can define value based on how much your customers spend on services at one time, for example, or how frequently they come into the shop, or how much they spend in a year.
Once you have a grid, you can decide how to allocate your marketing spend. You might identify your biggest spenders or most frequent visitors and focus on getting them to spend even more. Or you might focus your efforts on turning low-value customers into medium-value customers, or medium-value customers into high-value ones.
Next, it’s time to develop a marketing plan. What makes a high-value customer a high-value customer? What motivates buyers in each group to purchase more frequently or spend more when they do? Which channel does each segment prefer when communicating with you?
Once you understand what motivates each type of customer and how they want you to communicate with them, you can begin to craft a strategy for encouraging each type of customer to spend more or move from a lower value group to a higher value one.
Great marketing isn’t static. It’s an evolving process that requires continual investment in new strategies and approaches. What’s next for you?
Source: Article based on the Source: Article based on the webinar “How to Maximize the Value and Reach of First-Party Data” (Target Marketing, April 2020). Last Updated: 14 July 2020
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