For most Challenger Brands, clearly identifying your target audience can be one of the most important and difficult tasks associated with building a brand. The more specific you are about understanding your prospect, the more focused your marketing efforts can be; which translates into a more efficiently planned and executed marketing budget.
Age, Household Income, Education, Title, etc. all help in clarifying your target. However, if you spend all of your marketing resources targeting these prospects, you’re missing two-thirds of your audience.
Challenger Brands have three target audiences:
- Acquisition Target – Your traditional prospect; people who don’t know you.
- Retention Target – Your current customers; people who know you.
- Inward Target – Your internal team of employees, colleagues, partners, board members, etc.; people who know you intimately.
Most Challenger Brands focus on the Acquisition Strategy – how can we gain more customers? Certainly, a business will grow with the addition of fresh customers, but you may be surprised to know that, according to the The Chartered Institute of Marketing:
“Statistically speaking, the cost of acquiring a new customer costs five-to-ten times more than retaining an existing one. Not only that, but repeat customers spend, on average, 67% more.”
In addition to an Acquisition Strategy, Challenger Brands need to build a Retention Strategy. Such a strategy involves a heaping helping of ongoing communications that remind your current customers of all your great products and services. These may include – regular eNewsletters, Social Media campaigns/promotions/contests, special offers for current customers only, client entertainment/recognition, among others. Embrace your current client relationships, cultivate them and watch them grow.
Now that you’ve built into your marketing plans an effort to communicate with your current customers as well as prospects, don’t make the common mistake of neglecting your internal team.
JW Marriott once said, “If you take care of your employees they will take care of your customers and your business will take care of itself. Challenger Brands must communicate with as much vigor and sincerity with their internal team as their prospects and customers. And, remember, your internal team is much more than your staff. This team includes your colleagues, partners, owners, investors, board of directors, suppliers, and for many companies, friends and families. Don’t leave them out of the loop.
Be sure to include a communications strategy aimed at the audience closest to you, your internal target. This plan should be communications-rich and frequent. Regular internal eNewsletters, email blasts, flash contests, events, retreats, brainstorms, videos featuring teammates, etc. all add to the motivation, camaraderie and overall investment in your most valuable asset – your team.
Most Challenger Brands need to rethink their target audience to include both current customers and internal stakeholders. If you could use some help identifying your target audience and developing an approach that connects with all three of your targets, reach out to us at: firstname.lastname@example.org.
Until next time…