Your target customer key demographic can either make or break your marketing strategy because developing the right classifications can absolutely help design the right content marketing materials plus offering to the specific group segment you are trying to attract.
Demographic classifications can be gender, ethnicity, age, education, employment status, location, marital status and many more that allow you to define your target market.
When you define customer demographics, it would be easier to determine consumer behavior especially their buying behavior. Demographics are the typical or the average characteristics of your potential customers. Combined with the psychographics like lifestyle and hobbies, you would easily understand why people buy your product.
To gain insights about the demographic and psychographic information of your target segment, research and analytics need to be performed. Understanding your target market makes selling more effective because you know what media or marketing materials motivate them to respond to your marketing messages.
If you do not know what they want, your customers will continue to ignore your product or service offerings literally! Knowing what to stock and sell or how to offer and where can be daunting, but it is the only way to grow your business.
One way is to understand the desires and the products that appeal to them. Knowing what this market segment wants dramatically help manage design the right materials for product offering as well as the key performance indicators or KPIs.
The KPI simply helps measure your performance against the key objectives of the business. The KPI demonstrates how the business is performing to getting its goals and key objectives. It is as valuable as the action it inspires.
To decide what KPI to use, you should know your target market as well as set up your key objectives for the specific market. However, choosing and defining your KPIs can be tricky because they are often confused with business metrics.
Here are some questions that might get you started
- Define your desired outcome
- Highlight the value of the desired outcome, why it matters
- Choose a tool to measure the progress
- Know who is responsible of the outcome
- Know how you can influence the outcome
- Review the progress of each suggestion
Understand that KPIs needed to be customized to your kind of business and your current business situation. It needs to be integral to the success of the organization and highly connected with a key business objective.
Without a clear objective and a KPI, everything might be lost! Also, take note that defining a KPI would be useless if not communicated properly. The people who are working for you should be clear on which direction you are heading with the business.
The people working for you should understand what you are measuring and why you are doing it. They should be in the same platform with you about your business goals, KPIs and marketing strategy. Do not alienate them!
Let us start with one tool that can help navigate all this. Are you familiar with the Heathrow airport in London? The airport created a KPI framework that supports all operations and made them correct the root causes of their bad days in real time.
The tool that they used was a Balanced Scorecard which helped them break down the areas of the business that needed to be monitored. The effort was more on defining the key perspectives of the business such as the financial, customer, internal process and the learning growth, and then try to align them all in a way that it supports the other. The key perspectives must be aligned and not impacted or there will be a trade off.
The balanced scorecard strategy requires set objectives for each perspective, measures or KPIs, expected results and actions or initiatives. So, all members or workers in the organization are focused in the same direction, the system encourages clear work objectives and desired key results.
Key risk indicators are metrics used to provide early warnings about risk exposures. Performance metrics measure behavior, actions and performance at an individual level. A KPI dashboard monitors key results.
What about direct sales? What is the most helpful yardstick for developing the team?
Employee engagement is important. Breathe life into a disengaged workforce and keep them involved in developing the key objectives of the business. A KPI should be in place to show employees what really matters!
One way is to pull everyone in the same direction. Sales is focused more on attracting new customers and then, converting them into paying customers. However, there is one that you may be ignoring currently – the employee morale.
Experiment on it because it creates lots of problems and puts a brake on creativity. Disengagement may creep up once frustration sets in.
I recommend the SMARTER approach. It stands for Specific, Measurable, Attainable, Relevant, Time-bound, Evaluate and Reevaluate. There is no best KPI. Define it and see how it helps you manage your business, people and sales.
This is how you create your custom KPI
- Sales deliverables
- Milestone progress
To increase sales, you also need to create unique selling points your customers can relate and then measure outcome.
You can try looking at your Facebook, LinkedIn and Twitter Statistics if you want and go back to the basics. What are your demographics? Here are direct related sales stats that might help you formulate your demographics.
Stat 1: Recommendations from friends and families
Stat 2: Customers touchpoints, giving them the best experience possible
Stat 3: Identify pain points and negative experiences
Stat 4: Incentives and rewards to encourage word of mouth marketing
Stat 5: Encourage customer generated content
Stat 6: Loyalty rewards program
Stat 7: Show how you make the difference
Stat 8: Traditional advertising such as pop ups, cold calling and direct mail campaigns are disruptive. Instead of pushing the products to your customers, let them come to you.
Stat 9: Use social media to increase awareness
Stat 10: Create more content or blog
Target marketing and market segmentation may help you define basic key objectives. Focus is key. Concentrate your marketing efforts in one target segment first. Improve and measure. Replicate the process!