Features and tRends

(April 2009)

Targeted Niche Marketing
Valuable Strategies to Appeal to Current and Prospective Customers

By Steven Kleber

A solid customer base is the backbone of any thriving business. To flourish in an economic downturn, it’s essential that companies rethink the ways that they communicate with pre-existing and prospective customers. In fact, many companies are not effectively tapping into their existing powerful pool of dedicated customers, nor do they have a clear understanding of prospective customers’ motivations and purchasing habits to help replicate and expand market share growth.

Below are a few innovative marketing strategies to consider when reaching out to your important niche audiences to help increase sales and brand share.

Leverage Current Customers to Propel Sales

You’ve already established a strong customer base. They’ve purchased from you in the past or remain current customers. That’s the good news. Now, what are you going to do to maintain them and help you grow future customers?

Consider moving away from a traditional “push-based” information delivery model where you send out information. Instead consider how your customer would rather consume content, with a “pull-based” information distribution channel… where your customers can access your company information when and how they wish.

One strategy to employ might be to offer customer referral promotions and incentives. How about developing an exclusive network for high-value customers to allow VIP access, special products, discounted services or rewards for new customer referrals? Consider the micro-blogging site twitter as an innovative marketing medium to offer communiques to your faithful “followers” while developing an electronic-based loyalty program through company e-newsletter subscribers.

Provide ways for customers to comment (yes, negatively as well as positively) about your company’s products and/or services. In fact, research from MarketingSherpa found that a full 58 percent of consumers prefer Web sites with peer-written product reviews. Your corporate Web site is probably already well suited to augment for this type of interactive discussion board or product review feature. Another innovative strategy may considered to create a Facebook business page or Facebook group where customers can become “fans” and post comments on your company discussion board or “wall” as it’s referred to on Facebook.

Giving your customers a voice allows them the vesting power to become influential brand evangelists. Even apostles. Word-of-mouth marketing and positive peer reviews are powerful testimonials for your business, especially in today’s overcrowded marketplace. Although there may be risks if a customer comments negatively about a bad experience, think of this as a way for your brand to respond quickly and appropriately in rectifying the situation. Brand transparency will remain critical to modern-day business success. Remember that the value of building company transparency will more often than not, vastly outweigh the risks.

Be at the Forefront of Emerging Demographics that Drive Business

Now that you understand the value of retaining a solid customer base, the next step is of course to target new, prospective customers. The process you installed with your existing customer base, may as well allow for better attraction to emerging and lucrative demographic groups… as these unique individuals have the potential to alter your business in exciting ways.

Take for example the newest generation to influence the home and commercial building products industry—the tech-savvy Millennials also known as Generation Y. A group that is quickly becoming “first-time homebuyer” age and armed with new tax credit incentives, this is the audience to start nurturing today.

K&A felt so strongly about the Millennials as an “up-and-coming influential force” in the home channel, we embarked on a research study to determine how to effectively identify their needs and how to successfully market to them. And what a better political and economic backdrop for our efforts! Our research reveals where Millennials choose to live and raise their families will be the single most significant factor in shaping the nation’s housing industry over the next 20 years. What’s also noteworthy is that this generation will be far different from their predecessors. This means that traditional marketing strategies you have been using will require adaptation, if you expect to fully meet this dynamic group’s evolving desires and buying habits.

We’ve also identified immigrant and racial minority populations as vast and influential demographic groups. As immigration numbers continue to rise, these forces will need to be developed intimately by our industry. According to an analysis of census figures recently released in August 2008, racial and ethnic minorities account for 43 percent of Americans under the age of 20, strong indicators of America’s changing makeup.

Life is defined by opportunities… including those we miss. These two demographics are prime examples of the way new customers can enter the marketplace and create needs that can dramatically shift your traditional marketing strategies. As business leaders and marketers, it’s critical to collaborate with an integrated marketing and communications firm that understands the marketplace you operate within and the constantly evolving needs and desires of the people you aspire to attract.

Think Strategically, Target Accordingly

Whether you’re marketing to your existing customer base or seeking potential customers, it’s vital to begin by getting to know your target audiences better than your competition. Ask yourself:

  • What is this group like? What are their personality traits and characteristics? What defines them?
  • What are their likes/dislikes? What are their motivating factors to buy?
  • How do they buy?
  • How do they wish to be reached—traditional marketing mediums, online, social networks, direct marketing or other avenues?
  • How can my brand target and attract them to increase sales and market share?

The point? It’s all about preparation. And designing a plan. Developing customer insight. The key to marketing successfully—whether operating in an economic downturn or rebound—is reaching out to your customers in the ways they want to be targeted and in the places in which they are most comfortable.

To learn more about niche marketing email me at skleber@kleberandassociates.com or call 770.518.1000 x203. To be put on the list for an advance, complimentary copy of the Millennials or Immigrant White Papers, click here.

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