3 Things You Don't Know About Your Audience That Can Hurt You
Thanks to the proliferation of data generated by e-commerce, today's digital marketers have more information about their audience than ever before. But is it enough? Low marketing campaign conversion rates suggest not. Here are three things you don't know about your audience that can hamper marketing campaigns and cut into your margins:
1. The True Nature of Growth Opportunities: One of the biggest obstacles to marketing success is a failure to fully understand the nature of the company's growth opportunities. Basically, there are two ways to grow—by convincing customers who are initially entering the market to choose your product or by enticing customers who already use a competitor's product to make the switch.
Capturing the first group is an easier task: You have to convince new customers that your product is the best choice to meet their needs. For example, to appeal to people who are just entering the market for a smartphone—teenagers or younger kids who have finally convinced their parents that it's time to let them have their own phones, for instance—you'll need to find out what appeals to that group and position your product as the solution. That's Marketing 101.
To capture the second group—people who are already using a competitor's product or service—you'll need to successfully convince prospects to change their current behavior, which is much more difficult. To do that, you'll need to understand why they stay with their current providers and look for vulnerabilities in the relationships. For instance, most people stick with their cable provider even though few are fully satisfied with the service. Imagine how effective it would be to respond to customer tweets about a cable outage or price hikes with a customized Twitter offer to try your service.
2. Your Customer's Environment: As marketers, we spend a lot of time analyzing the functional aspects of the customer journey. We assess how prospects reach our landing pages, evaluate how they interact with the shopping cart, drill down into how they calculate value relative to our competitors, etc. But how much do we really know about how our customers make purchasing decisions "in the wild"?