Everyone knows that the more you know your customers, the better off your company will be. That’s why it’s so important that companies actually think smaller rather than bigger to address the competitive nature of the modern marketplace.
Micromarketing is designed to address the niche market within your larger target audience. Micromarketing as a digital marketing service can help your company figure out particular groups of people to market your service or product to. Here is what you should know about what micromarketing is and how to create a scalable micromarketing strategy.
What is micromarketing?
Micromarketing is a kind of marketing that targets a very small group within your overall target audience. This group should include highly targeted customers that share particular traits, including their occupation, location, household income, interests, age, and shopping behaviors. Micromarketing should target particular individuals rather than larger groups of people. For instance, a marketing company might typically market their service or product towards
small to medium sized companies. They might find that the digital advertising services they provide appeal to smaller retail stores. They might also choose to create a micromarketing strategy that targets retail store owners with stores with less than a particular number of employees.
Why do companies use micromarketing?
Both large and small companies use micromarketing. Micromarketing can be an excellent way for large businesses to introduce new services or products or help small businesses grow through local advertising or marketing efforts. One of the main reasons companies use micromarketing is to find a particular market segment of the population that they can sell their service or product to.
Micromarketing is more specific than niche marketing, and if a business is able to match a particular audience with the right service or product, then they can generate more money than if they were to cast a wider net. Many companies do this to test out advertising ideas and new product offerings.
For example, for a large corporation like Coca-Cola, there is only a specific and small group of people within their target audience who drink Diet Coke with a toasted vanilla flavor and extra caffeine. Coca-Cola has probably used a micromarketing strategy to figure out that there is a market for that specific soft drink.
The pros and cons of micromarketing
There are a few pros and cons to micromarketing to think about before carrying out the micromarketing plan. One of the biggest cons of micromarketing is the large time commitment. When you are targeting such a small and specific group of customers, you need to know and understand them intimately. You also need to develop detailed buyer personas and do plenty of market research.
There are also some benefits to running micromarketing campaigns. For example, the micromarketing efforts can be highly targeted. You can also get to know individual customers based on their job title or age. You can also better understand the overall needs and wants of your individual customers with this information and data.
Another huge benefit of micromarketing is that it is more cost-effective in increasing your return on investment or ROI than a huge national mass marketing campaign. You are targeting fewer people and spending less money targeting them.
How to build a scalable micromarketing strategy
There are several different kinds of micromarketing strategies you can use for your company, but each of these strategies uses the following steps:Create buyer personas. Buyer personas are the most crucial part of any micromarketing strategy, and you will not have a good understanding of your target audience without buyer personas. You need to think about quantitative and
- qualitative components when developing a buyer persona.
- Figure out the best way to reach your personas. Once you know who you’re marketing to, you can figure out how you’re going to reach them. Young adults spend a lot of their time on Instagram, while older adults might spend more time on Facebook.
- Come up with your messaging. Once you’ve figured out the right platforms to reach your target audience, you need to think about the right messaging to convert your prospects. That’s why it’s so important to think about the qualitative parts of your buyer persona, including how they think on an emotional level. You should conduct interviews and write down phrases they mention about why they trust your company.
- Implement and test. Messaging can also help you figure out how to convert your prospects. You should create two different ads to A/B test them and see which of the two messages has a higher conversion rate. Now, it’s time to implement your micromarketing campaign.