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

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Multi Level Marketing

Amway, Herbalife, MegaBônus, Monavie, Forever. It is likely that one or more of these names are familiar to you because all have one thing in common: they are companies with distribution system based on so-called multilevel marketing (MLM), also known as Network Marketing, and Network Marketing, respectively.
The principle is the marketing of products or services directly to consumers through a network of independent distributors, individuals not employed by the utility company. However, the purpose of this paper is to present concepts. I want to talk to those who already work in this system or who are tempted to do so.

You must be wondering what this author is intimately involved with this system and knows very well. I have been asked numerous times to join in this endeavor. Not that I do not believe in its viability. In fact, I see from a great MLM business opportunity with potential for spectacular profits! However, only those who pass the 10 screens detailed below:

1. Time. Forget this story of “earn extra income.” First, because you will not win anything the extra income will not fall from the sky, unless you do to something to deserve it. Second, because MLM demands dedication, commitment and, especially, time. The results will not emerge with only two or three hours working on weekends. If you want to make significant gains planning to make this your primary business after a few short months, and with great enthusiasm.

2. Relationship. To initiate the process necessary to trigger your contacts offering the product but choosing people who actually might be interested in using the product continuously, and then promote its dissemination to third parties, expanding the network.

3. Communication. We’re talking about selling, so that one of the determinants of success will be your ability to communicate verbally, talking with your prospects, written communication, preparing advertising materials, promotional materials and newsletters, and interpersonal communication through good use of body language and other signs. Never be limited to material and instructions supplied by the provider.

4. Initial investment. The best think is to have its own financial resources sufficient to fund the acquisition of the membership kit and a first batch of products without compromising your personal budget.

5. Determination. Make planning, set goals, establish a vision for the future. Signal what you’re getting. And dream big. Nothing can be more mediocre than to dream small dreams come true. Persistence is the fuel, while the determination is the engine.

6. Knowledge of the business. Learn all about the company, product and market. Know your competitors and evaluate their strengths and weaknesses. Become an expert on the subject. Understand that you will not be selling cosmetics, shakes or credit card, but beauty, healthy eating and convenience. In other words, sell benefits.

7. Commitment. In network marketing, commitment means more than pursuing goals and determination to exercise. It represents more than attention to network members and respects the principles and values of the company represented. The quintessence is just using the product. This is the best way to make it reliable and desirable. To persuade, lead by example.

Note that these screens involve technical aspects (business knowledge and resource management), behavioral (persistence, determination and commitment), relational (communication and relationships) and value (transparency). And they can all be practiced and developed. However, it must pass before the greatest of all constraints: time. And that’s not a question of good or bad management, but of choice and surrender.