Wednesday, 16 December 2009

Target Marketing: The web marketing process (part 6)

The Web Marketing Process | Objectives
This article is part 6 of a series. You'll find part one here. And part 5 here.

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Target marketing is an important component in the web marketing process. It has two practical applications in lead generation...
  1. It improves your conversion ratios
  2. It helps you find good places to advertise

It improves your conversion ratios by helping you find people already predisposed to respond to your offer.

Improving conversion ratios, even by a small amount, has a drastic impact on your sales. For example...

  • Image all 3 of our conversion ratios are 1 in 10 as follows...
  • 1,000 visitors become...
  • 100 leads, which become...
  • 10 appointments, which become...
  • 1 sale

  • Thanks to target marketing, we manage to improve our ratios to 1.5 in 10 as follows...
  • 1,000 visitors become...
  • 150 leads, which become...
  • 23 appointments, which become...
  • 3 sales

We've tripled our sales via a tiny improvement in our conversion ratios. And lest you think an increase from 10% to 15% is unlikely, I achieved an improvement of 628% by changing 4 words in a letter, and applying bold and underline to them.

This change to a direct mail letter was designed to appeal directly to a specific target market. The bold and underline helped make the words stand out.

That's what proper target marketing will do for you. And why tracking your results is essential (i.e. so you know whether or not your changes have worked).

Target marketing helps you find good places to advertise because you better understand where your best prospects are likely to hang out online, and what they're looking for.

This also improves your conversion ratios, because it helps you find people who are ready to say yes.

Gaining a proper understanding of your target market, and what they do on the Internet, is an essential part of setting your objectives.

For example, a stamp collecting web site might convert 1 in 50 visitors sent from AdWords. The same sales copy might convert 1 in 20 visitors from an ad placed on a specialist web site.

Why? Because the specialist site already attracts the very people you're looking for.

These people are more likely to understand why they're clicking on your ad. And the benefits offered by your product or service.

What's more, properly understanding the target market offers another benefit. It helps you to construct a more attractive offer. One that is more likely to excite your target market.

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