Why is reverse targeting so sexy?
The sex appeal of big market research data often fades after its introduction because companies don’t know what to do with it.
The central theme is linking your wildly exciting new research to your own prospect and customer data. Fortunately, there are simple ways to get to market segmentation and break out of the mass marketing pattern that drives many companies to “run too” status. We call this reverse segmentation and it can create legends in the business world.
This is how reverse segmentation works. Almost everyone has a customer database and knows the vendors who can provide lists of prospects. We can use the data commonly found in these databases to develop market segments. For example, using data from a customer’s customer list, we take income, education, and marital status as the basis for the segments.
Once these segments were formed, we psychographically profiled each segment using new market research. The key was that the market research project captured all three key demographics, as well as great insight into customer needs and attitudes. This allowed us and our client to compare common client data with what really matters: the client’s needs, concerns, and motivations. It also allowed us to attribute likely market behaviors and attitudes to each customer in the customer database.
Market research that captured buyer psychographics and graphs yields particularly valuable insights because it can be used to show differences in segment loyalty, profitability, and the best messages to achieve goals. With this information, teams can target existing customer segments and new prospects with the priority and intensity necessary for greater success. In fact, reverse targeting like this is often what is needed to justify buying outside of specific lists.
Careful analysis plus some trial and error may be necessary, but I am sure this leads companies to a better marketing position.