Why You Need A Smaller Target Market…Not A Larger One

There’s Riches In Niches

One of the biggest mistakes companies make when they launch any marketing campaign is trying to please everyone.  A golf course I conducted marketing campaigns for fell into this trap.  They felt that anyone should want to play their course.  What’s not to like?  There’s two courses, it’s not terribly long (under 7100 yards) and they have a great bar and grill.

Club manager said, “we’ll take anyone

There’s just one problem…

If you were to sit in the clubhouse and watch the people who came in there’s a familiar pattern you would notice.  Customers tended to be 57 to 70 years old, male, white, retired living within 15 minutes of the club.  A niche had been established without the club knowing it.   To prove this point, I sent out a survey that received 736 responses.

Of those responses, here’s the data we collected:

Average Age:  62

Sex:  Male

Rounds of golf per week:  2

Services used during round:  cart, drink, food

Handicap:  17

Essentially what this data tells you are these folks are retired or close to it, they are avid golfers that like a good pint and burger with their round.  So why was this club trying to market to everyone else?  There was a false belief the club was a good fit for everyone.  But golfers who just picked up the game felt the course was too long and too difficult.  Conversely, players who were single digit handicap players felt the club too easy.

Our group that fit the data above…they felt it was “just right.”  From there, we devised a program called the “Power Pack.”  What this was is a bundled price for golf, drink, cart and food that raised their price from $29 to $49.  The result?

An additional $21,339 per month.  The Power Pack converted at over 50% when sold as an add on at the counter and got a conversion lift in email campaigns by 47%.  What’s the lesson learned here?

As business gurus Ramit Sethi (I Will Teach You To Be Rich) and Michael Port (Book Yourself Solid) would tell you, it’s about finding a small niche market that can benefit from your services.  By targeting more selectively, you can increase your marketing effectiveness and cut waste from your budget.

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