Have you ever thought: I’m sure this company would respond to [some particular idea you have]? Ever felt frustrated that your market segments seem a little too like a catch-all, even with your various ideal customer profiles in mind? Then micromarketing might be just the strategy to lift your sales strategy to a new level this year.
And if you decide not, at least you relieved that pesky voice in your head as you survey your sales figures!
What Exactly is Micromarketing?
Micromarketing is a strategy that targets an ever-smaller, specific group of people. For these clients, you customize products, services, and value creation to offer something that will pique their interest in ways other groups will not respond to.
For example, NICE drinks was the first company in the UK to offer small tins of wine that were solely aimed at younger festival crowds. They would not be seen with plastic wine glasses that had a more “elite” appearance! Red Bull appears to have done something similar back in 1987 but targeting extreme sports.
The concept rises from further market segmentation. Consider the following differences:
- Macro market focuses on the majority of consumers rather than a smaller group. Think red wine in bottles.
- Niche market focuses on a segment of a larger market for a specific product or service. Think cabernet from a less common region.
- Micro market segmentation focuses on specific individuals with common characteristics. Think festival goers on the move and target them with a special edition of cabernet!
How do you define a micro market, then? You’ll need to dive deep into your own business data and divide it into ever smaller groups that nevertheless have buying power (otherwise no ROI).
Some of the possible traits include gender, demographic, job title, age range, or marital status. But you need to then go deeper.
How the 2022 Economic Climate Benefits Micromarketing
What’s happening in today’s economy?
- Supply chain disruption
- Sourcing problems and shortages
- Cost of living
- Geopolitical/social unrest
This means buyers are spending less. For this reason, micro marketing offers businesses a chance to vary their offerings and create small batches of products for a smaller group of consumers. The customers will be those that their data suggested would nevertheless offer a ROI despite being a smaller group.
In some respects it’s a variation on a normal strategy. Sales teams have always had to remember to target those customers who are still “hot”. Pursuing cold prospects wastes time.
Today, however, many of your “normal” groups of customers are having to change their buying habits. This means examining a different strategy for scaling sales to at least see if it’s a viable way forward.
Micromarketing strategies therefore give your business the opportunity to pivot quickly when your customers’ finances (or values) change. Today’s values of sustainability and provenance have already set this in motion. Hard economics is increasing the trend.
With an element of micromarketing in your sales strategy, you can gain some competitive advantage by targeting those clients who can not only afford to spend, but who will go for your added value proposition, your special offer, or a premium product or service.
5 Considerations Before You Start Micromarketing
1 Consider your data!
The target micro group of customers is going to be much smaller. Therefore you want to make sure you can build meaningful relationships with that group. Use your CRM and AI to analyze the data you have of your ideal customers into smaller segments according to the traits we mentioned.
What does it tell you? Does it offer clear possibilities to execute a successful micromarketing campaign with a very small group? Once you have promising numbers and a clear picture, you can go ahead with the planning.
2 Consider your product/service carefully
Compare how your product/service and the proposed size of a micro-segment will fit viably into
- your overall sales system,
- your usual marketing efforts, and
- sales team activity.
Can it be done? We mean, by your business. It’s not for everyone. But today’s technology and social media do offer you the chance to deliver a personalized product/service to your target micro markets – wherever they are – via different channels.
3 Consider your ideal customer
Typically your ideal customer profile guides the sales and marketing strategies you’ll use. However, when you’ve pinpointed the ideal micro customer you’d like to target, and considered your product/service adaptations, you must check if this will bring in sales faster via micromarketing than continuing with traditional strategies.
4 Consider your customer journey
The customer journey involves their decision-making and buying behavior.
So, check your data again to see which customer journeys “work” best for your brand. You need to understand the many touch points and micro moments that define a successful marketing strategy. And then check if the customer journey of your target micro audience supports your micromarketing plan.
5 Consider your RevOps team
Do you have a RevOps team overseeing everything from a marketing, sales, and operations perspectives? RevOps is essential to ensure your business spending goes to the best places. Does your micromarketing plan support the overall company goals that RevOps monitors?
Advantages of Micromarketing
- Highly targeted customer groups mean you can significantly reduce the overall costs of production and advertising.
- Smaller campaigns mean you can create very specific briefs and actions that are easy to execute.
- The smaller market size allows you to appeal to customers in a more personal and meaningful way, which is key today for generating growth and brand loyalty.
Disadvantages of Micromarketing
- Planning for a micromarketing strategy is time-consuming, from choosing the target market, planning the outreach campaign, and executing it in different ways in different places. But it’s also innovative and strategic in today’s world.
- The average cost of acquiring a new customer is higher than in the average macro market. That’s because it targets a smaller group of your customer base. You can cost this, however, against higher yields per customer gained if you planned correctly.
- If you target the “wrong” audience, you’ve wasted resources and capital in a seriously small segment. But you’ll find out quicker if you’re on target or not, and we did say it’s quicker to pivot with a smaller project.
We Can Help You
Micromarketing is one possible growth strategy for both small and large businesses. But you’ve seen it’s a balancing act according to your business, your goals, and your market. So let’s talk about your sales strategy! Contact us today for a free consultation to assess whether you can create a winning micromarketing strategy!