As we've discussed in previous articles, it is critical to determine and engage your target demographics. Failing to effectively cater to these groups will limit your business' potential revenue and growth, Frank Cespedes explains in Entrepreneur. Yet, by catering to these audiences, you can signficantly improve your revenue, while strengthening customer loyalty.
Cespedes highlights four steps for targeting your core demographics:
- Analyze customer information: Companies should know customer information as it relates to core selling metrics, such as profitability, cost of customer acquisition and customer-lifetime value. Centralizing and analyzing this data helps companies "establish a common language of customer value across functions," Cespedes notes.
- Involve your sale's team: Those in sales' position can provide direct insight into customer behavior, including profitable and unprofitable customer characteristics.
- Determine your highest value customers: It is vital to know who your highest value customers are – those who generate the most cash for your business. Cespedes explains: "Some customers require more calls, some buy few large production-efficient order quantities and others may buy more in overall volume but with many just-in-time orders, impacting delivery and other cost-to-serve elements."
- Communicate insights: Communicating your knowledge of customer information to the rest of your organization means better decision making and improved sales. Entrepreneurs need to focus on optimizing their customer selection processes based on the data they've gathered. This way, companies can make the most productive use of their resources and time, while increasing sales.
If you are interested in learning more about effective and innovative marketing strategies, consider working with an internet marketing firm such as KeyMedia Solutions. We provide targeted marketing solutions, as well as other services that improve your organization's marketing results.