Retail Marketing: Target Marketing Improves Return on Investment

Historically, retailers have taken one of two approaches in marketing their products – frequently described analogously as the rifle or the shotgun.  Today, these approaches are still employed; albeit, under the titles targeted marketing or mass marketing.

With the advent of the various forms of new media, the tools for new, more meaningful means of targeted marketing are now in place, and retailers – who have often struggled with their abilities to achieve one-to-one marketing communications with customers and prospects – are now armed with resources enabling them to achieve these once elusive goals.

Social media and new customer relationship management (CRM)techniques allow retailers to channel marketing budgets in ways facilitating the most optimal and expedient return on investment (ROI).  In terms of overall business strategy, the ability to identify and understand consumers enables retailers to accurately gauge potential market success for products and services.  Additionally, this capability – based upon availability and sound analysis of newly-available data sources – supports market development strategies for both new and existing customers and reduces risks associated with new market ventures.

By employing social media and CRM tools and techniques, can gain a more thorough understanding of the connections between lifestyles and expenditure characteristics of consumers as well as their identified propensities to purchase one product or brand over another.  By leveraging these conclusions and data, retailers can make better strategic decisions about products, markets, and locations and generate higher levels of ROI.

 

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