Like all direct marketing principles, targeting is entirely logical.
Yes, the world is your database. But it makes sense to aim your products at the people you know are likely to be interested instead of blatting your message out to everyone in the known universe and beyond.
Targeting saves money
Offline, targeting has serious cost implications. It saves a bomb on direct mail postage costs by contacting people who are statistically the most likely to buy. Mass email marketing costs less than nothing, but spamming is just lazy when there’s so many great opportunities for intelligent online targeting.
Targeting has SEO implications too
Say you sell freelance copywriting services in Sussex. Instead of choosing the key phrase freelance copywriting, which is very competitive, pick key phrases that directly reflect your niche. These will be longer by nature. Including phrases like freelance copywriting in East Sussex gives you a much better chance of getting your site in front of searchers looking for exactly what you’re selling. Not just something in the ballpark.
How can you tell if people are probably in your target market?
If they…
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have bought your products before
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have bought products like yours before
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have shown an interest in buying your stuff, or stuff like it
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have bought complementary products. For example you might sell a tie to someone who has just bought a smart office shirt
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imply their interest by registering for your newsletter
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enter your competitions
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have contacted you to ask a question
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belong to a professional body, forum or network that’s relevant to your products, services or industry
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subscribe to relevant websites or trade magazines