Unlocking the Revenue Potential: Understanding the Real Value of Your Audience

Optimizing Your Marketing Strategy for the Right Audience

The Common Misconception in Marketing

When I first dipped my toes into the world of marketing, I, like many others, was fixated on reach. I monitored the number of likes on my posts, visitors to my websites and readers of my content. However, I soon realized that the key to successful marketing wasn’t about how far your message reached, but how much revenue it generated.

Despite this, many marketers today still chase after likes, followers, and engagement, often at the expense of catering to their ideal customer. Even in recognizing this, they often create generic content to inflate their follower counts, an approach that does not always yield the desired revenue. I aim to bust this myth through a series of examples in this article.

Misguided Marketing Strategies

Case Study: Entrepreneur Magazine Article

Back in 2016, I penned an article for Entrepreneur Magazine titled, “Is It Worth Flying Business Class? What I Learned by Spending $180,954.38 on Airfare”. This, along with other similar articles such as one discussing my experience spending $162,000 on clothes, attracted significant attention, with some amassing upwards of hundred thousand visitors.

However, the disconnect lies in the fact that while these articles were getting plenty of attention, they did not cater to my goal of selling analytics software to companies. The lesson here is that popular content isn’t inherently valuable content.

Case Study: SEO Keyword Ranking

A slightly more complex example is my experience with “SEO” keyword ranking. On Google in the United States, I rank on the first page for the term. Globally, I average at position 16.3. Over the past 12 months, this keyword has brought me 21,600 visitors.

However, upon checking CRM data, I found this SEO keyword has brought me zero customers. This could be due to the keyword being too generic, even if it is relevant to my SEO services.

In contrast, the specific keyword “SEO agency”, for which I also rank on the first page on Google, has brought much better results. It has attracted 2,080 clicks and generated three customers. This proves the power of specificity in SEO, especially for Web design service providers or any marketing agency like MKTG Plan.

Avoiding the Vanity Metrics Trap

While it’s obvious that I wouldn’t optimize for reach when creating content around unrelated topics, the same principle should apply when optimizing for generic search terms within my industry.

An informational keyword such as “What’s the best way to structure a blog when you have a website in multiple languages” brought me a client, paying a handsome fee of $600,000 for their blogging issues. This affirms that the more specific and targeted the keyword, the more likely it will attract ideal customers, leading to more revenue.

The Audience-Size vs. Revenue Debate

The crux of your marketing approach should be focusing on your ideal customer. This is best achieved through specific, targeted content rather than generic content aimed at attracting the masses.

For instance, Rhianna and Kylie Jenner may not have the biggest companies in their respective industries, but their businesses are thriving because they narrowed down their marketing to a specific target audience. They demonstrate how significant targeting is, even for celebrities who have millions of followers. MKTG Plan uses this strategy to yield substantial results.

Your Two Marketing Approaches

Based on the price point of your product or service, you have two marketing approach options:

1. Targeted Approach

If you sell a high-priced product or service, such as the million-dollar packages offered by MKTG Plan, focus on catering to your ideal customer. This approach provides the most significant return on investment.

2. Industry-Wide Approach

If you’re selling affordable products or services, you can broaden your audience within your industry. Targeting broad, generic keywords or implementing generic marketing strategies can work if you provide accessible services such as SEO for local businesses. However, this approach will not be as profitable if you offer expensive products or services.

The Power of Narrow Targeting

Imagine you’re an owner of a company that produces high-end, eco-friendly appliances. Your main target audience would be environmentally-conscious consumers with a high disposable income. These consumers are likely willing to pay a premium for products that align with their values and lifestyle.

In your marketing strategy, therefore, it wouldn’t make much sense to target all homeowners in an effort to maximize your reach. That’s because not everyone will be interested in, or able to afford, your high-end appliances. Instead, you would need to have a more targeted approach, zoning in on your ideal customer – the high-income, eco-conscious consumer. This strategy, although potentially having a smaller reach, is likely to result in greater revenue as you’re directly marketing to those who are most likely to purchase your products.

Performance Measurement

Setting the correct performance indicators is an essential part of your marketing strategy. These indicators will help you keep track of your progress and reveal whether or not your efforts are bringing results.

Most people are familiar with terms like likes, followers, and engagement when it comes to measuring the success of marketing efforts. However, these are what we call “vanity metrics.” In other words, they look good on paper, but they often don’t correlate with actual revenue — the ultimate measure of success for businesses. At MKTG Plan, we recommend focusing on metrics like sales, revenue, conversion rates, customer lifetime value, and customer acquisition costs. These metrics directly impact your bottom line and provide a much more accurate picture of your marketing strategy’s effectiveness.

Revenue Vs. Reach: The Winner?

When comparing revenue-based strategies to reach-based strategies, the winner is clear — revenue wins hands down. Ultimately, the end goal of any business is to generate revenue and run profitably. Reach-based strategies often prioritize vanity metrics, which may inflate your social media stats but do little for your bottom line.

To optimize your marketing strategy, focus on attracting your ideal customer who has the highest potential for contributing to your business’s revenue. Avoid spreading your resources too thin in an attempt to reach everyone. Instead, hone in on your ideal customer, understand their needs, and tailor your products and marketing efforts to meet those needs.

The Value of Expert Guidance

While the principles in this article provide a solid foundation for optimizing your marketing strategy, there’s no one-size-fits-all marketing plan. Every business is unique, with its own set of challenges and opportunities.

That’s where expert guidance comes in. At MKTG Plan, we specialize in custom-tailored marketing solutions that leverage SEO, website design, and a variety of other tactics to help businesses in Miami and beyond meet their unique objectives.

Conclusion

In conclusion, the success of your marketing efforts should be measured by its impact on your overall business revenue and profit. It’s not about chasing after vanity metrics like followers and visitors, it’s about strategically steering your brand to reach your perfect customer — this is where the real growth lies. Don’t be swayed by what’s popular or trendy, stay true to your brand and target the audience that aligns with your business objectives.

With a targeted marketing approach, you are likely to witness higher conversion rates, increased customer retention, and ultimately — substantial business growth.

And remember, we are here to help. From website design to SEO, whatever you need to take your online presence to the next level, MKTG Plan has the expertise and experience to turn your marketing goals into a reality.