When you invest in online marketing and lead generation, the main goal is to help potential customers learn more about your product or service. The most effective strategies connect you with people who can benefit from your offerings, which is why market research is essential.
It’s a waste of time and resources to implement a marketing campaign that puts your message in front of people who aren’t interested in your product or service. Instead, the goal is to help you connect with customers who have a problem that your business can fix.
The process of finding and connecting with your ideal demographic involves marketing research and catering the marketing message to speak to their needs. Once you dial in the right demographic, you can adjust your messaging to increase conversation rates and boost overall profits.
Not Every Lead Is Created Equal with Market Research
Just because you have a list of online leads doesn’t mean that these people are ready or interested in spending money with your business. So not only do you want to bring in leads, but you need to focus on quality over quantity.
A “good lead” is an objective statement because the quality of lead varies from one company to the next. Talk to your sales team and managers to understand more about qualities and unique details that contribute to the customers that are spending money.
As you improve the quality of leads you are bringing in, it positively impacts overall results in the future. Not only can you profit from immediate sales, but the highest quality leads come back for repeat purchases. Additionally, these customers are satisfied with their purchases, which increases the likelihood of referrals.
So, building a solid marketing research strategy is a foundational step to help your business grow. As you are proactive with this strategy, you can elevate your reputation over your competition and gain more market share.
Benefits of Market Research for Lead Generation
How does market research improve your overall results through a lead generation campaign? Here are a few benefits you can expect:
- Connect with qualified leads
- Align your products and services to the customer’s preferences and needs
- Optimize marketing spending
- Dial-in your customer sales cycles
- Find the best ways to communicate with customers
- Craft messages that turn leads into paying customers
- Increase the likelihood of repeat purchases
- Boost conversion rates
Instead of spending marketing money and hoping something works, it’s better to be strategic about how you are investing. A systematic approach to identifying and marketing to your target demographic can result in great results down the road.
Market Research Strategies: Identifying Your Target Demographic
How do you know which groups of people you should be targeting in your online marketing campaign? Here are a few strategies that can help you identify your target demographic:
- Location: Is your business local, nationwide, or worldwide? If you have a storefront and only offer in-person services, make sure you have a clear strategy to target your marketing to local residents. For example, you can use market research or public information to see demographic data by zip code, city, county, and state.
- Identity: Certain identifying information can help you dial in your target demographic even more. For example, are your ideal customers mostly female, male, or a mix of genders? In addition, look for other identifying information, such as marital status, occupation, ethnicity, religious affiliations, and more.
- Age: It can be helpful to narrow your target by identifying a specific age bracket you want to reach. Create your marketing messages to speak to this age group, with alternative messaging for people who might be in the upper or lower ranges of this demographic.
- Online Activity: Where is your target demographic spending the most time when they are online? Younger generations tend to prioritize social sites such as TikTok and Instagram. Older generations use Facebook and news sites more often.
- Income: Make sure your target customers have enough income to pay for your product or service. Understanding income levels and price points helps you avoid marketing high-ticket items to low-income families who don’t have extra cash for splurge purchases.
- Buying Cycles: Are there annual trends that affect customers’ buying decisions? For example, if your business provides products for homeschooling families, the busy season will be late summer or early fall. Many retail companies have their strongest sales cycles during the holiday season. Understanding the buying cycles can help you preserve cash in the slow season and optimize ROI in the busier seasons.
There isn’t a one-size-fits-all solution for every business. Your company is unique, which is why it’s crucial to dedicate time to understand your specific demographic through market research.
Market Research Has an Impact on Profit Margins
If you want to increase sales and profit margins, it starts with identifying the customers who want to buy your products or services. Once you have a clear goal through market research, you can target your sales efforts to increase purchases.
The market is constantly changing. As a result, it’s a mistake to rely on history or assumptions. Just because a sales strategy worked a few years ago doesn’t mean it’s the best approach now. Likewise, the internet is constantly changing, which is why market research is always an essential step for lead generation.
Researching your target demographic is essential for Pay Per Click, Search Engine Optimization, retargeting, and any other form of online marketing you choose. As you begin to understand your target demographic, you can use this information across other marketing strategies.
Talk to the Pros
As a business owner, your focus should be on product development, employee management, and other tasks to keep the company running. Adding online marketing and lead generation to your to-do list can be an extra responsibility that you don’t have time to manage.
Instead of attempting a DIY strategy, it’s more effective to invest in a proven system. Talk to our pro team at ARYU Advertising to learn more about the ways we can help your business connect with your target customers. Contact us any time to schedule a consultation and learn more.