Spending money on a marketing campaign with less than satisfactory results can be a very frustrating process for a company. However, this is not a rare occurrence and can affect more businesses than is acknowledge in the marketing world. If you are unhappy with your Marketing Return of Investment (ROI), then take a look at how defining your audience can help.
What is Audience Definition?
Audience Definition is a term in the marketing world that describes a company’s process of identifying the best customers who are most likely to produce a favorable outcome for the company. In other words, it is the act of successfully determining who is most likely to purchase a company’s product. It is a vital component to running a successful and profitable marketing campaign.
Guesswork is not good enough.
All too often, marketing strategists fail to correctly identify their target customer base. The “strategy,” unfortunately, for many marketing plans, is to guess who the most ideal customer may be. When a company fails to use hard data and statistical analysis to identify their ideal audience, then their return of investment is going to be poor at best. Quite simply, every time you guess about your audience, you throw money into a dark hole.
Another failed approach for many companies lies in the philosophy that it is best to target all possible audiences. This is a mistake for most companies, as the money dedicated to ad campaigns will not generate the desired revenues. When a company instead focuses on proven data for a targeted group of individuals, they are much more likely to see a positive response to their advertising campaigns.
Strategic marketing requires effective research and analytics.
With the appropriate research and the right analytics, business executives may be surprised to learn who their target base actually is. A good data program goes a long way in analyzing months and years of campaign results and revenue. Effective programs and teams focus on more than just the usual demographics; they go beyond age, sex and socio-economic backgrounds. Companies lose a potential customer base when they fail to look at deeper factors.
Failing to identify your best customer base results in wasted expenditures.
Audience definition can help you spend less money on your ad campaigns, as you learn who and how to target. Mailing out ads and strategically placing pay-per-clicks focuses the money you do spend on those prospects that are most likely to respond positively to your ad campaign. This generates more revenue as you produce a conversion, or a positive outcome, for your business.
When you attempt to market to everyone, you spend more money with less conversions, resulting in a poor ROI.