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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What is Branding and How Important is it to Your Marketing Strategy?

The American Marketing Association (AMA) defines a brand as a “name, term, sign, symbol or design, or a combination of them intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of other sellers.

Therefore it makes sense to understand that branding is not about getting your target market to choose you over the competition, but it is about getting your prospects to see you as the only one that provides a solution to their problem.

The objectives that a good brand will achieve include:

  • Delivers the message clearly
  • Confirms your credibility
  • Connects your target prospects emotionally
  • Motivates the buyer
  • Concretes User Loyalty

To succeed in branding you must understand the needs and wants of your customers and prospects. You do this by integrating your brand strategies through your company at every point of public contact.

Your brand resides within the hearts and minds of customers, clients, and prospects. It is the sum total of their experiences and perceptions, some of which you can influence, and some that you cannot.

A strong brand is invaluable as the battle for customers intensifies day by day. It’s important to spend time investing in researching, defining, and building your brand. After all your brand is the source of a promise to your consumer. It’s a foundational piece in your marketing communication and one you do not want to be without.

By marketing.about