June 27, 2017 Blog
For retailers, marketing your business is as critical to success as offering the right merchandise and providing top-notch customer service. However, you won’t see any benefit if marketing strategies target the wrong audience. Here are four retailer tips for identifying your target market and marketing your business in a way that maximizes sales and profits.
- Know your customer base. It’s impossible for retailers to target customers for any store or chain unless they know who their customers are. Although it may be obvious, carefully identifying your target market, rather than trying to market to every consumer, because very few businesses (if any) have universal appeal. Learn the common demographics of your shoppers, and use the data from your Point of Sale (POS) system to determine which customers buy certain types of merchandise. This will help segment your list for targeted promotions.
- Ensure that branding matches the target market. Identifying your target market is just the beginning. Branding your business in a way that appeals to that market is the next important step. Ambiguity surrounding a company’s image could result in a loss of customers. Your branding should reflect exactly what type of business your company is. It’s more than a name or logo. Font styles, colors, images should all convey the spirit of your business. When you offer promotions, the style of the flyer, coupon, digital ad, etc. needs to be true to your brand.
- Determine how to deliver promotions. Savvy retailers know that reaching a certain audience also necessitates knowing how to best deliver the message. Think about how your customers get their information and determine the channels they use most, e.g., social media, e-commerce sites, television, radio, internet searches, or newspapers. This will likely vary with the demographic of your target market. Teenagers may spend most of their time engaging with your business on social media, but older shoppers may prefer paper coupons or flyers in the mail. Don’t assume which method works best based solely on preconceived notions about shoppers of certain ages, however. Your older shoppers may prefer digital coupons and younger shoppers may hang onto a paper coupon that will get them a good deal. Make marketing decisions based on the data you collect.
- Be smart about what to feature in promotions. Data will also guide good decisions about what to feature in promotions. If you operate a sporting goods store, you can target customers that made purchases related to a specific sport at the start of the next season. Or if many of your shoppers are parents, offering a sale on a new toy that’s premiering before the holiday rush may have a positive response. Focus on your particular customer base’s preferences and behaviors to optimize the response to promotions.
- Keep tabs on return on investment (ROI) and tweak campaigns where needed. Merchants’ promotions must produce results to be worthwhile. Just because you know who you want to target and what you want to offer doesn’t mean you’re doing it in a manner that maximizes results. Take a close look at your marketing campaigns, and make adjustments as necessary to keep getting the results you need.
Marketing your retail business may seem like a complicated process, but taking an analytic approach can help you significantly increase the bottom line. Identifying your target market and following retail tips such as staying true to branding, using the right delivery methods, and committing to continuous improvement, can make the difference between promotions that are overlooked and promotions that lead to sales conversions.
Contact us today for new ideas on how to improve your business.