Adding an extra item to every fifth order can drastically increase your profits. With access…
As the owner or operator of a wholesale distribution business, you’re always looking for new and innovative ways to increase sales and grow your business. Traditional marketing methods can be costly and time-consuming, but targeted marketing can be a cost-effective way to reach new customers and grow your business. But what exactly is targeted marketing, and how can you use it to increase your wholesale distribution business?
Targeted marketing is the process of identifying potential customers who are most likely to purchase your product or service, and then tailoring your marketing message specifically to them. This can be done in several ways, but some common methods include targeting specific demographics, geographic areas, or even purchasing history and behavioral signals.
In our recent survey of distributors regarding the use of targeted marketing in their businesses (download your copy of the report here), distributors reported that while industry segmentation is one of the simplest forms of segmentation it had the widest ranging benefits among all segmentation methods. Industry segmentation is the ability to separate customers by the industries in which they operate. For example, being able to identify which customers are electrical contractors, vs. home improvement enthusiasts vs. large home builders. If you’re a wholesale distributor of automotive parts, you might target auto repair shops in your area. Or, if you’re a distributor of office supplies, you might target small businesses in your city. By tailoring your marketing message specifically to these groups of people, you can more effectively reach your target audience and increase sales.
Why is industry segmentation so effective? Understanding your customers’ industries is a simple way to make sure you are sending relevant offers to the right people. If you send an offer about construction job site support to your electrical contractors, they might feel alienated and be less likely to respond. But if you can target that group with a message that makes sense to them – perhaps an offer to help with lighting design on their next job – they will be more likely to interact with you. It makes sense that this leads to higher order size and better sales execution – the offer fits.
Another benefit of targeted marketing is that it allows you to track the results of your campaigns more effectively. This data can then be used to fine-tune future campaigns and ensure that they are even more successful. In other words, targeted marketing is not only more cost-effective than traditional marketing techniques, but it’s also more effective in terms of generating leads and increasing sales.
Targeted marketing is a powerful tool that every wholesale distributor should be using to grow their business. By identifying potential customers and tailoring your marketing message specifically to them, you can increase sales while also saving time and money. Plus, with the ability to track campaign results, you can continuously improve the effectiveness of your marketing campaigns. So, what are you waiting for? Start planning your next targeted marketing campaign today.
If you are interested in learning more about how SMP can help you see these kinds of results with your marketing plans, please schedule a discussion that best fits your schedule.