How targeting can improve ROI in a tough market

Let me guess. Your marketing dollars have been slashed but your sales budgets have increased. Your CEO wants more consumers through the doors, but hasn’t got any extra cash for you to acquire them.

Does this dilemma sound familiar?

Many retailers in today’s market are faced with the same challenge and even though there is not one definitive answer to all our obstacles, one simple fact cannot be ignored. Communicating to your target market and the retention of your existing customers is paramount in battling the myriad of choices facing consumers every day.

For many of Australia’s retailers, mass marketing is simply not within the budget. Furthermore, there is mounting evidence to suggest that traditional forms of advertising are becoming less effective as media consumption continues to fragment. Well-planned and executed targeting is a key ingredient for all marketing messages and is particularly pertinent when planning your unaddressed advertising campaigns.

There is no point sending a baby brochure into an area predominantly made up of singles, or a direct mail piece for the new Audi R8 to an individual with an income of $30,000. So how can we better target our advertising?

In its simplest form, the Census can provide many of the answers to these types of questions. For example, if your target market is women aged 25-45 years old with an income of $60,000 plus, variables from the Census can give you a simple view of the market. Geodemographic tools such as Salmat’s Marketfind ( enable retailers to identify where their target markets reside and plan their communication accordingly.

Retailers can also analyse their customer databases.

This can be used to understand what profiles make up their customer base and how they can more effectively change their methods of communication to resonate with the preferred customer type, or attract new customers. Once this has been conducted the appropriate media can be selected.

As many Australian retailers use unaddressed catalogues to drive their marketing messages, geo-demographic targeting can aid in the reduction of print quantities whilst communicating with the groups most likely to respond to their retail offering.

Furthermore, if you are fortunate to have dollar spend information on your customers you can delve even deeper into targeting by selecting areas based on likely financial return to the business.

With such tools on hand, retailers across Australia can better understand the market in which they operate in order to maximise their marketing ROI.

I’m guessing your CEO will be happy with that!

For further details, please contact Anthony Capano +61 2 9612 8148 or [email protected]


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