One of the fastest and effective ways to grow sales and improve the profitability of your business is to go after high-end customers. The reason is very simple, high-income customers can afford to purchase more of your products and services at higher prices.
Before starting to advertise a product to potential customers, it is very important to take a time to find out the ideal consumer profile for your products. By defining ideal customer, you can start to notice patterns that may prove helpful in target advertising.
There are many groups on the basis of which you can identify the consumers, such as:
- Preference
- Lifestyle
- Trait
- Stage of life
- Attribute
If you are planning to grow your sales by hitting the right potential customer for your product, then thinking about consumers in terms of the way they are represented by groups can be very useful. The first group includes the most common categories for defining consumers, such as demographics, socioeconomic status, and production stage. The second group extends the concept of the first group and includes psychographics generation, geography, and geodemographics.
Here demographics describe who we are as individuals such as ethnicity, age, gender, income, marital status, and education. Retail business owners usually find the most of the demographic data they need in order to make business decisions on various census platforms.
Net Household Income of any Consumer
Specifically, if we talk about the demographics based on income, then first we have to understand what the role of consumer income on sales profit is? Disposable of net income is the amount of money that an individual has available to pay for expenses minus taxes and deductions. Discretionary income is the amount of money that remains after consumer pay for needs that are required to sustain a reasonable livelihood. In most of the cases, the higher the level of net income the greater the amount of discretionary income that would be available for a consumer to purchase wants or items not requires to maintain their life but their lifestyle.
- If the main customer has a limited income, then goods and services marketed to them should be within a price range that is within the budget.
- Products marketed to the more affluent customer, however, would be manufactured, packaged, promoted in a manner that would show their level of quality and prestige and would be priced according to the need of the customer. Agricultural businesses that offer food items categorized as specialty foods might be considered as supplying a want and would have developed a marketing strategy to appeal to consumers with a higher income level.
Many useful statistical measures and economic indicators derived from net household income. For example, various economists use this disposable income as a beginning point to calculate metrics, including discretionary income, personal saving rates, marginal propensity to consume and marginal propensity to save.
Many market researchers may develop proprietary consumer profiles or may use panels of consumers who have been classified according to their common attributes. Market researcher provider firms often make their consumer profiles available for discrete market research projects that are consulted for their market research clients at big companies.
So what are the effective strategies to attract high-end customers?
A simple five-step process is explained below:
- Build a profile of your ideal consumers: Your ideal customers should be the people who are excited about what you have to offer and who can afford to pay for your products and services. When building a profile of your ideal consumers, you can either build the profile based on demographics or customer circumstances. We have already explained this point in detailed earlier.
- Ensure trust and credibility: During the marketing to high-end customers, it is very important to establish trust and credibility to minimize resistance in the sales process. Some high efficient ways to establish trust or use of social media, industrial data, and others credible way of promotions.
- Select the right platforms: This is a very crucial point. You have to make a proper study where your customers spend their time online and offline, as well as who and what influences them to buy. Some high-end audiences can be reached instantly through online marketing campaigns.
- Design the right business system, team, and process: It is very important to have systems, processes, and people in place to help you generate, track, and follow up with close qualified leads.
- Find out the right message: Once you identify the right customers, you will need to Java application development the right development agencies for those clients. Your messaging should communicate the ideal end result. People buy your products because of the benefits and advantages that those features will provide and how the product or services will make them feel.
