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Targeted Marketing

Targeted Marketing with Clubs, Groups and Loyalty Programs

I recently told a few of my colleagues that our members can’t always create a digital marketing message that will be “everything to everyone.” It’s true that sometimes you will have general digital marketing content with the goal of reaching a large number of people. But you should also consider incorporating targeted marketing into your overall strategy.

What is targeted marketing?

Targeted marketing is a message or campaign that specifically appeals to individual demographics or preferences in an audience. The goal is to target a message to people who you have determined will be interested in that message and, ideally, will buy the product or service offered in it.

Why should I use targeted marketing?

You are more likely to see conversion rates increase when you use targeted marketing strategies. If you direct your messages about a specific product or service that appeals to a certain demographic and marketing it only to that audience, they are more likely to buy that product or service. This is as opposed to directing a general message to a general audience. You can still talk about things like hot deals or your online shopping program with the goal of reaching your entire audience. But if you are looking to increase sales on something specific, like baby products or your wine and beer selection, consider more targeted marketing approaches to determine which customers are buying (or are likely to buy) those products and target messages to that audience only.

How do I implement targeted marketing strategies?

First, determine which audiences you are trying to reach with your targeted marketing strategies. Which products or services are you promoting? Don’t assume you know exactly who that audience is. Use the following techniques to show you who those customers are and then market directly to them.

In-store and online “clubs”

This can be as simple as a regular email newsletter with specific content targeted to a group of people who sign up to receive the email.

For example, one of our members in the Gulf Coast region offers a wine club. Customers sign up for a monthly newsletter so they can receive special monthly sales on three select wines. Not only that, but the email highlights deals on two types of craft beers and a “Cheese of the Month” to increase sales for customers who prefer beer or enjoy wine and cheese pairings. In this email they also promote monthly wine and beer tastings hosted at all locations that sell wine and beer, which are also highlighted on social media. Remember to use all of your digital channels when implementing targeted marketing.

Other options for clubs are a baby or kids club, a gourmet cooking club, grilling or meat lovers clubs, etc. 

Facebook groups and targeted Facebook ads

Another way to extend the idea of clubs is to create Facebook groups that are associated with your store’s Facebook business page. Another option is to create targeted Facebook ads that are directed to the demographics or interest groups you hope to reach with the targeted ad.

Facebook groups are associated with, and linked to, an already established Facebook business page. They are designed to “build a community around your page.” Create groups for VIP customers, or in the case of targeted marketing, you can also create them for the different clubs you establish.

Targeted Facebook ads are simply an extension of the in-store or online group you create. Facebook gives you the option to target sponsored ads to very specific audiences. You have the option to target a Facebook ad by age range, gender, or geographic location(s). You even have the option to narrow your audience down to their interests, based on what they list on their profile as an interest or the pages and groups they follow.

Using a Facebook pixel on your boosted posts and Facebook ads will help you continue to develop specific audiences to then use in future Facebook ads. The pixel tracks people who visit your website from clicking on a link or button on your Facebook ad. If a person is engaging with a specific message you share in a Facebook ad, assume that they will be interested in seeing more of that type of messaging in the future.

Loyalty programs

So, how do you determine who is in these target audiences? Sure, you can make some general assumptions about which demographics would be interested in deals related to kid- or baby-focused items. But even then you might be excluding some people, like grandparents who want to buy certain items for their grandkids. One of the best ways to determine which customers are buying a certain product is to establish a loyalty program at your store.

Loyalty programs begin with a rewards incentive that offers discounts and/or coupons to your frequent shoppers. Offer customers a hard copy card for your loyalty program, or simply identify them at the register with a unique signifier like a phone number or email address. Then, offer loyalty card members a specific dollar amount off their next purchase after they reach a certain dollar amount spent using their card/signifier. Another option is to offer only loyalty card members access to digital coupons available on your website and/or app. You can even implement a fuel program that will translate to savings at certain gas stations for every dollar they spent at your store using their loyalty card/signifier. The idea is to create a strong enough incentive for the customer to sign up and regularly use the loyalty program so you can gather data about their shopping habits.

The data will then help you create customer segments based on purchasing habits. You can send targeted emails to customers who regularly buy baby products, meat products, etc. Use this data to create simple targeted marketing messages or even invitations to join the clubs mentioned above. 

Targeted marketing is a great way to “work smarter, not harder” on your marketing strategies. As I mentioned in a recent blog post, focus on spending smarter instead of spending more on digital marketing.

Why do I work at AWG? “I like working for a company that supports local, often times family-owned, businesses in everything they do in order to help them succeed and stay competitive. It’s great to interact with the stores on a daily basis and learn about their story and the communities they serve.” -Melanie