Are you really targeting customers with products they actually need?
It seems obvious doesn’t it. You should focus your marketing spend on customers who actually want and need your products. But the reality is more difficult than that.
Understanding your real addressable market is a challenge. Often businesses focus on who is likely to buy their products. However, another way to look at it is to consider who can’t buy your product. This can help you home in on the most likely customers and not waste marketing money on those that will never buy from you. Is someone without a garden really going to buy a lawn mower? So why try and sell them one? Instead you can target this person with a more relevant offer and an alternative product.
Smarter marketing and use of data can help you target the right people at the right times, and get better bang for your marketing buck.
One important way of doing this is to consider where your potential customers live and if they are experiencing a major life event connected with the home such as moving house.
Property character building
Looking at the characteristics of a property is a good way to understand which of your customers you can target effectively. Here are just a few examples:
16% of UK homes are “Off-Gas” meaning that they do not have a mains gas line connected. If your business sells LPG, heating oil, electric heating, solar solutions, heat pumps and bio fuel then you should be ignoring 84% of UK properties. It is much less likely that people would switch away from mains gas, at least in the next 10 to 20 years anyway! This sort of data is also very useful information for boiler manufacturers and re-sellers.
Solar – sunny side up
Understanding the solar potential of UK properties can help solar power businesses target the right households. For example, people with south facing roofs will benefit the most from solar energy; these are great targets for suppliers in this industry.
Power storage solutions help households store the energy they capture so it can be used later. For this market, knowing which properties have already had solar power solutions installed would help them to target households that can benefit from their product.
Chimneys – sweeping up sales
If your business sells wood burners, or maybe you are chimney sweep, you should focus on properties that have open chimneys and remove others from your target list.
Gardens – green fingers
Around 31% of homes in the UK do not have gardens. Companies that sell garden furniture, garden equipment and garden materials should avoid marketing to these UK homes.
Understanding the mix of properties with and without gardens can also inform business decisions about where to open stores. Edinburgh, Bristol, Sheffield, Birmingham, Leeds and Bradford all host a large volume of properties without gardens.
The size of gardens may also be of interest to property developers, who could look to acquire part of it to build new homes.
Here is an interesting fact. Smaller properties tend to change occupants more frequently. 70% of smaller properties on the market do not have a garden (the figure in London is 60.5% in case you are wondering).
Number of bedrooms (or habitable rooms)
One could infer many things from the number of bedrooms in a property, maybe a family lives there? But where this can be really useful is where the size of a property impacts the size of the opportunity. A larger number of bedrooms represents a greater revenue opportunity for bed retailers, carpets and flooring, removal firms, insurance companies, DIY shops and many more.
This information can be used help organisations focus in on new customers that are likely to spend more.
Property attribute data can also be layered onto property event data. This allows businesses to not only target the right consumers, it also allows them to strike at the right time.
For example key dates include:
A house move triggers significant spending, including the home move itself as well as host of post-moving opportunities (and risks). This a vital segment for removal businesses, DIY firms, furniture stores, flooring companies, insurance services, utility firms, telcos, and many others.
Anniversary of moving
A couple of years after someone has bought a house it is time for them to look at their mortgage product for a cheaper deal – especially if they come to the end of an introductory lock in period. However it may be unlikely that people will switch mortgages before then, so lenders should wait and strike when the timing is right.
People that are extending their homes are a great target for DIY firms, insurance companies, window and door firms and building equipment and merchants. This is also an interesting market for estate agents who could help sell an upgraded home.
Lastly looking at your own data is another way to identify opportunities. If a customer has recently bought a particular product from you, what is the likelihood that they need another straight afterwards? For example if you have just sold a car, the owner is unlikely to want to buy another one straight away but may be in the market for other products and services.
By analysing data you can also understand purchase frequencies and target consumers accordingly.
Smart data and timing is everything
Being clever about the customers you target and the products you promote can transform your marketing efforts and results.
Geopify specialises in providing targeted data to help companies hit their marketing targets.