The successful search for new customers requires a targeted approach to prospecting and lead generation. Targeted marketing techniques such as radius marketing can give you a way to accurately identify the potential customers who are most likely to respond favorably to your product and service offerings.
Radius marketing consists of identifying potential customers who live in the geographic area surrounding the home addresses of your active customers, then sending targeted mailings to these individuals. It is based on the concept that people living in the same area as an existing customer will likely possess similar buying habits and income levels and share some of the same needs. With radius marketing, you can send advertisements, promotions and mailings for an almost limitless audience of specialized prospects.
Demographics target marketing helps you locate viable market segments. When you know these five segments, you can create a customized marketing message that appeals to customers who match your requirements on the dimensions of:
- Demographics: The basic characteristics of customers and potential customers in your target market, such as age, occupation, ethnicity, education, marital status and number of children.
- Finance: Information on the target market’s economic status and purchasing power, including income, debts and assets.
- Lifestyle: Details of individuals’ ways of interacting with the world and pursuing entertainment, social interaction and personal fulfillment. This includes hobbies and interests; number and types of pets owned; and avocational pursuits, plus the amount of time individuals spend engaged in them.
- Market indicator: Data that allows businesses to understand customer buying patterns and that helps them make predictions on what customers will buy and under what conditions the purchases will be made.
- Trigger: This includes information on significant events in a customer’s or potential customer’s life that could trigger changes in buying behavior and purchasing patterns. This includes significant life events such as graduating from college, getting married, having a baby or retirement.
If you knew more about your potential customers’ demographics on the five dimensions noted above, how could you use that information to change, adapt, or improve your marketing efforts?
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