Want to know my secret to save money on your paid strategies?
Stop targeting customers who aren’t profitable long term. Instead, focus on the top 20% of your customers who drive 80% of your revenue. The 80 / 20 rule strikes again!
Here’s how…
Figure out the right niche to target, where they are in their journey, and deliver the right messages that attract them.
Here’s why…
Consider, for example, a probiotics brand. You would think that anyone who needs to digest food would be a core customer. That’s not exactly true, because not everybody who consumes food, aka – everyone, experiences digestion challenges.
While your product may benefit everyone, your marketing spend will go farther when you focus on a smaller niche who is experiencing issues that you solve AND are in search of a solution.
Understanding your niche customer profile and their needs and desires combined with leveraging first-party and third-party data can decrease customer acquisition costs while increasing your marketing effectiveness. You won’t be targeting the masses and as a result, your traffic may not be as high, but the customers you attract will be more loyal, stickier and result in higher profitability and life time value.
Don’t waste time and money on churners or random win-back strategies. Instead, focus on attracting the right customers at the front end with a data-driven approach.
Do you have access to the right kind of data that will assist you in targeting your best prospects? Happy to hop on a call and discuss your situation.
