One of the most important elements of growing your business is to know the audience you are targeting. This helps shape your marketing strategy, helps break down your demographics, and provides insight into who is using your products and why. Placing tracking and analytics methods throughout your marketing pieces is key. This helps you understand who is responding and paints a clearer picture on how you can get them to keep converting through your business.
How this translates into profits
Imagine this – you are running a private pre-sale for those customers who have responded and converted before. Because you understand what they want, you can tailor those promotions not just to the audience, but for specific people. You may have a higher threshold amount for certain customers, who should be given better incentives than a general buyer. Knowing who and how your customers respond will give you the leverage needed to make an impact on your promotions that translates into sales.
Customers like feeling as if they are special. Make sure you have a code on every piece of direct mail, email or SMS message that will send this information back to you. Not knowing who is using your products is like throwing money in the trash. Don’t do it! Here are a few ways to track:
- Purchase history – Monitor what products are bought, when and how often. This shows how valuable that customer may be to your bottom line.
- Communication – Monitor what pieces have the most effect on your customers. Compare the different methods of communication with a customer’s purchase history to determine which methods work best for them.
- Spending habits – How do your customers shop? Do you have customers that purchase monthly or weekly? Do they react to special promotions? Does price make a difference? These are all important metrics to evaluate to continue getting conversions.
Knowing your customer is a valuable part of customer service, and using the right pieces to connect with them is key. Study your metrics to gain insight and make an impact on your profits. The more you know, the more your business will grow.
