By Marian Ferrari: I would like to share an edition of Simple, Smart & Sexy… many times I’m asked how to innovate when a company doesn’t belong to a sexy industry like consumer electronics. In today’s video, I will show you how a small company in Mexico transformed a universal service into an innovative, profitable business.
Margeting is Targeting
Today I was reading a post on LinkedIn of a marketeer who commenting on what Pinterest is, mentioned he is starting to feel virtual overload. I agree. That’s how everybody I know (except for my social media diva friend Lynn Ponder, Founder, webcitygirls. I was recently asked why Simple, Smart & Sexy didn’t have a Facebook page. The answer is our clients are not on Facebook. They are sailing, skiing or playing golf when they have a spare minute, and the only other free time they have is when they are at an airport or in a plane (it’s when they read/watch us!).
Ever since I started working (hummm only will confess to have over 15 years of experience), I discovered that many businesses have a marketing problem but almost ALL have a targeting problem. This happens basically because they don’t want to leave any possibly, possible client out. Not targeting correctly, is one of the most common marketing oversights which drives to ineffectiveness and very low ROI. In this market, in which the consumer feels completely overwhelmed, strategy and focus becomes the most important key to profits. You can’t possibly be everywhere, nor it’s worth it. Targeting, targeting, targeting is key and creating new business lines (or entire businesses) from super niche targeting is a very effective way of innovating. The recipe, is so simple…
1.Take a traditional industry -for example-, coffee shops: they are universal (exist everywhere) and aren’t very targeted (except for a few exceptions on price – Nespresso – or a few on style).
2.Think on how to convert a traditional, universal, un-targeted business into a super niche, ultra targeted, premium price business.
3.To do so, think in what way maniac coffee lovers are satisfied or unsatisfied with the existing offers?
4.Think on all the possible varieties of coffee shops that exist and group them in clusters (self service, different decorative styles, cozy and charming, coffee gourmet and all the ones you can possibly imagine).
5.Observe coffee maniacs and think what would make them be the most loyal clients of a new coffee shop?
6.Keep the most valued attributes of premium priced coffee shops like Nespresso, for example: variety and quality of coffee, store design, coffee capsules that look like jewels, Nespresso’s coffee machines, service, etc.
7.Observe a coffee maniac: are they mainly male or female? Age? Do they come by themselves or with someone? Do they look bored? Do they read, talk on the phone, relax or do they seem in a hurry, stressed, just stopping for a coffee?
8.Once you have a close observation of the target, add the perks that they would love, which will make the coffee shop the sexiest, most attractive coffee shop in the neighborhood? Would that mean offering different styles of coffee cups? Would that mean having interactive tables? A specific offer?
Just by writing this example, I came up with the next idea for a specialized Coffee Shop… have you? Are you doing a good work on targeting in your company? Think how can you develop a new line of business by adding the Super Niche trend…
Super Niche is definitively an innovation trend that will flare up during 2012 and 2013. I’ve mentioned my Social Media Diva friend Lynn Ponder, Founder of WebCityGirls. She did exactly that: Social Media and blogging specifically to connect brands with a very important consumer niche in the US: Latinas. Now she has the fastest growing Social Media agency for brands which want to engage and communicate with Latinas in the US.
One day I’ll tell you how I sextupled results at ING with half the investment mainly by doing a significantly better targeting job and focusing on the client, not on the product. But that’s… another story!
Remember Be Simple, Be Smart, and Be Sexy!