Demographics is Important for Customer Retention

Successfully Marketing While Keeping Demographics in Mind

Marketing to customers of different demographics is simpler than it looks.

Consumer demographics are broken up into different categories: millennials, generation X, baby boomers, and the silent generation, the elderly (“15 Strategies For Marketing..”, 2015).

Understanding these various types of people and their income levels, age and ethnicity is very important to successful marketers today (Mansfield, 2014).

Millennials are a very mobile generation, and work hard to ensure that their peers are up-to-speed with each other. They may be impulsive, but are able to score great business deals when they need to. Generation X is more reserved and hard-working, and prefer to search for products carefully, and work towards applying discounts. The silent generation, who were born between mid-1920s and 1945, don’t tend to spend that much, having a traditional mentality. Besides age, these demographics are divided by gender, income, and ethnicity. Consumers who have more disposable income, or who are rich, are better targets for marketers selling clothing and accessories(“15 Strategies For Marketing..”, 2015). Understanding demographics creates successful outcomes for companies that wish to acquire long-term customers (Nelson, p. 4).

In her book, “The Transformational Consumer,” Tara Nelson talks about transactional marketing versus transformational marketing. MyFitnessPal, the world’s largest digital health company, started with a small tiny orange logo of a “tiny dancer”. It was catchy, cute, and motivational. The tiny dancer grew to a full-fledged app with 45 millions users in over 18 months, without any paid advertising (Nelson,  p. 2).

What?!? How is this possible? 

MyFitnessPal was smart. It didn’t work hard to acquire customers relentlessly like some marketing companies. They won over their consumers by caring about their humanity, and this was extremely influential in winning over transformational consumers, that, well, cared about being “transformational” (Nelson, p. 3).

Humanity?!? In Marketing??

This is partially because people get sick of being treated like a business transaction, and getting hassled by “tit-for-tat”, stressed-out marketers trying to reach marketing goals by buying their consumers every week, day in and out, like a bad, endless arts and crafts project (Nelson, p. 4)

Marketers finally understood that consumers were smart, instead of trying to buy them out. A picture of our victim (the average consumer) below.

demographics

Continue reading Demographics is Important for Customer Retention

Reviews Online

Today’s technology and internet allow opportunity for businesses to build their reputation so that the world will know about their customers’ experiences. Almost all of consumers trust online reviews to help them make their buying decisions when it comes to local business (“Build Your Business Reputation, 2017).

reviews

The BBB, Better Business Bureau’s rankings are considered trustworthy, yet nationally recognized businesses are falling into fraudulent advertising that scams the weak, business people desperate for a good rating at any cost (Rhee & Ross, 2010).  The BBB gives criteria for business owners to follow “Overview of BBB Rating”. This list of criteria is said to determine what makes a good business or not, and the BBB claims that consumers can complain about unfairness, but the BBB is really doing an injustice to consumers, because it is they are committing fraud, and handing out A’s to business owners that are willing to pay for their reputation.

Now in 2017, technology-savvy consumers are everywhere and the mass population is more educated. People are chatting, sharing feelings and posting opinions to social media.

reviews      reviews

Positive reviews are extremely influential in gaining consumer’s trust since, “90% of consumers read online reviews, and 88% of them trust online reviews when considering a business” (McCormick, 2016). According to research, what they read online about a product or service is just as important to consumers as the recommendations given to the them by their family (“Advertising and Marketing Blog”).

Yelp, a relatively new application, which is popular with mobile users, has “13 million reviews. Hundreds of thousands of local businesses are adding their own photos, descriptions, etc,” and these are primary sources of how consumers feel about a particular item, or business, in general (Barone, 2010). This information gives an accurate account of how users feel about a product or service.

Online, people are allowed to be free, unafraid of widespread censorship by others’ opinions, and write their true, often passionate thoughts. This helps American consumerism because, uncannily, and unlike the crude, and slapstick “Better” Business Bureau, which is considered a pedestal for businesses to hang their business’s credibility, social media applications that provide review services, have the power weed out desperate business owners, and save consumer’s time, money, and mental energy. Business reputation is earned over time, not bought.

Co-work in NYC, and in the meanwhile stay fueled with more of the latest of the latest news about emerging technology markets!

 

References

“Advertising and Marketing Blog” MDG, http://www.mdgadvertising.com/blog/how-much-do-consumers-buy-into-online-reviews/. Accessed 23 2017

Barone, Lisa. “The Mystery Of Yelp’s Overwhelming Success, Solved” Business Insider, 5 Oct. 2010, http://www.businessinsider.com/the-mystery-of-yelps-overwhelming-success-solved-2010-10

“Build Your Business Reputation: The Power of Online Reviews.” Proceed Innovation, 19 June, 2017, http://www.proceedinnovative.com/blog/build-business-reputation-online-reviews/

“How to Build a Better Review Marketing Strategy.” RevLocal, 22 Sept. 2017, https://www.revlocal.com/blog-reviews-and-reputation-management/how-to-build-a-better-review-marketing-strategy

“Overview of BBB Rating” BBB, https://www.bbb.org/council/overview-of-bbb-grade

McCormick, Kristen. “The Power of Online Customer Reviews.” 30 Aug. 2016, https://thrivehive.com/power-online-customer-reviews/

Rhee, Joseph and Ross, Brian. “Terror Group Gets ‘A’ Rating From Better Business Bureau”ABC News, 12 Nov. 2010, http://abcnews.go.com/Blotter/business-bureau-best-ratings-many-buy/story?id=12123843

 

How to: Leverage Facebook for Digital Marketing

An online presence is important for companies to survive. Technological advancements and social media trends are keeping businesses busy in attempts to stay relevant and engaged in consumer’s lives. Facebook is one of the most popular social media sites – having over 1.9 billion active users – it is a very useful method to promote digital marketing. According to NYTimes, Facebook users spend fifty minutes of their day on the site searching through content. This gives companies a platform for millions of potential customers a day, the only thing left to do is reach out.

Simply having a Facebook page is not enough for businesses to reach their digital marketing goals. In order to gain an audience, a business must be found by the users… or the business can find them. Through the use of Facebook ads, companies are able to grab the attention of users and measure the results. Being used by over four million businesses the tool has proven to provide growth, connection and high return on investment.

How Facebook Ads WorkFacebook

Facebook ads are targeted to users through demographics such as location, age, gender, and interests. It is important to reach users who are within the businesses target audience. The next step is deciding ad placement – where the ad runs. Facebook is able to show ads on any device and to be shared on Instagram and Audience Network. All this advertisement isn’t free but Facebook makes sure that it doesn’t have to be costly either! The tool lets a business to set their budget and time period for a campaign and then advertises according to the limits set. The most important aspect of Facebooks ads are the ads themselves including their format, image, and quality. The businesses are able to choose how they want their ad appearance to look whether it be a single image, a slideshow or video. The ad should be creative and well thought out.

Though, companies try to create ads catches users attention they may not always be a success. An easy way to manage and track the performance of an ad is through Facebooks Ads Manager, Power Editor or Business Manager. Each tool allows businesses to see the performance of their ad and allow tweaks to be made for improvements. The steps are easy to follow and manage to make Facebooks ads an easy step towards success.

Facebook vs Google AdWords

Though Facebooks ads are highly used by businesses worldwide it is still challenged with a major competitor. Google Adwords. Google AdWords is an advertising tool used to reach out to people through various targeting methods. It allows businesses to select keywords to help find potential customers that may be searching up services and products they provide. By being able to display ads on over two million websites and 650,000 apps it gives the opportunity to reach out to more people in several different fashions. The tool, like Facebook ads, allows the business to set a budget for their campaign. Though, they only have to pay when someone interacts with the ad – so basically when it works. There are also tools to view and manage the ads – including how many people saw the ad, activity, and the option of editing ads for improvement.

Facebook

While both tools are available to all sizes of companies, Facebook ads allow for easier navigating than Google Adwords does. The average Joe can easily use Facebook Ads with no marketing experience while Google Adwords may take more training. While Facebook does not offer training in their Ads program, Google does to guide users.

It is clear to see that simply having an online presence does not do much in terms of digital marketing for a company. Therefore, it is important for businesses to reach out to users in order to build long lasting relationships and success. There is no shortage of users, they just need a bit of direction towards the right company for them. The world of Social Media advertisement is dependent upon the future of social advertisement. The tools are available to help your brand grow.

Sources:

“Facebook Ads.” Facebook Business. Facebook Business, n.d. Web. 07 July 2017.
“Grow your business with AdWords – AdWords Help.” Google. Google, n.d. Web. 07 July 2017.
Stewart, James B. “Facebook Has 50 Minutes of Your Time Each Day. It Wants More.” The New York Times. The New York Times, 05 May 2016. Web. 07 July 2017.
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