Tuesday, August 23, 2011

Understand your audience

Understanding your audience is indisputably the key to any effective marketing or communications campaign. No wonder, the bigger guys have big departments in place to understand the demographic and pyschographic profiles of their customers (and prospects), that often can be divided into multiple segments! Similarly, the internal communications departments are gaining more insights on their employees to reach out to them in a more effective and efficient manner.

However, off late I have noticed that even the smaller ones are unknowingly becoming more conscious of this and using it to effectively sell, or up-sell, or cross-sell, basically to address the needs of their customers. The best example of using a customer care-about for cross-selling was when after a pedicure, I was asked if I was wearing closed shoes. When I replied in positive, my nail therapist took out a pair of basic flip-flops and said, "Would you like to buy one?.. (continuing in same breath).. only $10?"

I marveled at the ingenuity of these spa guys. They understood their customers, sensed their need, and bingo, there they were! It really didn't require any elaborate business strategy, or market research, or capital investment to sell these flip-flops at this tiny salon! Truly I would have never imagined a manicure and pedicure (only) salon selling flip-flops. Even if I had broken my shoe right infront of their shop, I probably would have never taken a chance by asking them if they had something that I could put on my feet. I mean, I could still inquire if they sold lipsticks for instance; I would take it for granted that they did sell nail paints though.

In retrospect, however, why didn't I buy the pair of flip-flops? So the nail therapist repeatedly asserted that my nail paint would get chipped, and I really didn't care much about it. The damn thing had just costed me $18 (I had a Groupon). If I was paying a hefty price for the nail art, then I may have worried. So can I say that I didn't see value in their work, or atleast as much value? Though honestly I can be quite a tomboy when it comes to stuff related to personal grooming, another reason why I would never pay for nail art sort of stuff, until I get an attractive deal. Not the ideal sort of customer!

So had the nail therapist insisted that I spend more time waiting at the salon to let the nail paint dry adequately, I probably would have bought a pair. I value time, mine and everyone else's. (Bought it more so because I forgot to carry my book along that day). I may have also bought a pair if they were a tad bit cuter, but then selling fancier slippers would definitely lower their profits assuming they continue selling at $10 per pair! Anyway, so this is where she went wrong with me, probably because I comprised a minuscule of her audience, and definitely not the ideal segment.

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