5 tips for successful target marketing

Posted on Jan. 22, 2014 by @direct_cpc in Marketing solutions

The secret of target marketing is that, done right, your message connects with the people most likely to respond. It may require more work up front but it delivers big time on desired results.

Targeted marketing requires data. Ideally, it gives a 360-degree view of your best customers’ lifestyles, hobbies and preferred media so that your marketing materials reflect their interests. It helps ensure that you spend your marketing dollars in the right geographic locations. Even business that don’t collect their own customer information can access a wealth of demographic data linked to postal codes with Canada Post’s Precision Targeter.

Once you have the data, what do you do with it? Use the following 5 tips to help build target marketing that delivers results.

1. Identify important customer groups


Use a consumer segmentation system (buy or build in Excel) to add a segment code to each customer address. Use data from commercial or government surveys if you don’t have an address file. Find your best segments by comparing the customers or sales in each segment to the average in your market or nationwide.

2. Create target groups of similar segments


Merge similar segments of your best customers into 4 to 8 target groups. Then analyze each of these target groups by:

  • Who they are (demographics).
  • Where they live (geographic concentration).
  • How to reach them (media tastes).

If possible, identify characteristics like whether a group is price sensitive, made up of green consumers, or early technology adapters.

3. Search for key prospective customers in your own customer database and target markets


If you analyze your data base and find geographic clusters of top customers, you’ve spotted a neighbourhood that could hold valuable new customers. Then look for untapped areas that share similar demographic and lifestyle factors and rank them by projected profitability. Develop a media and direct mail strategy for each identified segment using mail lists supplied by Canada Post.

4. Create segmented marketing that appeals to different customer lifestyle groups


Develop different messages to appeal to your top target groups. Each approach should reflect their backgrounds, lifestyles, values and preferences. The same pizza restaurant, for example, might market their take-out service to families for a quick dinner on games night while marketing to university students as a post-study snack with friends.

5. Track effectiveness and adjust your marketing strategy to improve results


Track and measure responses to your marketing efforts. By measuring how your customers respond, you’ll get better at predicting future behaviour and refine your target market accordingly.

Target marketing has always been a mix of art and science. But if you can find the right mix of creative messaging and data, then it can help you build a healthy business. If you’re new to target marketing and looking to better understand your customers, learn how you can request a customized solution for your business today. If you’re looking for a free tool to help grow your business and take your direct marketing success to the next level, try our Precision Targeter tool that offers interactive, map-based targeting.


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