Increase Sales via Targeted Marketing

The indoor tanning industry was established as part of the active American lifestyle in the mid-1980s. And since that time the demographic profile of the customer base of the typical salon has remained relatively consistent at 70% Caucasian female and 30% Caucasian male.

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Based on my research and the analysis of thousands of salons, I have developed the following gender- and age-based profile of U.S. tanning salon patrons.

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SEX	AGE	PCT.
Female	25-29	19.2%
Female	30-34	16.7%
Female	18-24	12.3%
Female	35-39	10.4%
Male	18-24	9.2%
Female	40-49	7.5%
Male	25-29	6.0%
Female	50-59	5.2%
Male	35-39	4.5%
Male	40-49	3.7%
Male	30-34	2.9%
Male	50-59	1.1%
Female	60+	1.0%
Male	60+	0.3%

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Granted, this data will fluctuate with the physical location of the tanning facility, as well as the central focus of the salon’s sales and marketing efforts. And when comparing the figures to a study I conducted in the 1990s, I found a 40% increase in the Female 50-59 age group. (Our customer base is aging.)

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Conduct a similar analysis of your customer base, as it will provide you with the basis for developing highly effective sales and marketing programs.

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Once you have created a demographic profile of your salon’s customer base, the next step is to determine how much sales revenue is being generated from each specific group. For example, let’s say that your salon is producing $200,000 per year in annual sales and has 2,000 active customers in the database. And of these, 20% (400 customers) are Caucasian females age 30-39.

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Studying your sales history also reveals that these 400 customers are responsible for $80,000 of your annual sales, or 40% of your total sales. At the same time, your analysis reveals that 10% (200 customers) in your active database are Caucasian females age 18-24 and they contribute just $10,000 in annual sales, or 5% of your total sales.

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Knowing that in your particular market, females between the ages of 30-39 present a much more lucrative marketing audience than females age 18-24, it would make logical sense to develop sales and marketing strategies – and offer more products and services – to attract more like-minded consumers within this age category.

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At the same time, knowing that everyone is aging and that one day, these 18-24-year-olds will become 30-39-year-olds, you must continue to focus part of your marketing efforts on attracting and maintaining this younger audience.

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Next, compare the demographic profile of your business head-to-head with that of the overall population of your target market area. Your market may include several towns or areas of a large city, so be sure to gather data on your actual area of reach and influence. Typically, you can find such information at census.gov. This info is also readily available from your chamber of commerce, as well as many real estate sites. This will help you to determine how many people from each category actually patronize your business, as well as the number of people who are potential customers.

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For example, your analysis has revealed that 400 of your salon guests are Caucasian females between the ages of 30-39. And in the study of the overall population, your target market actually has a total of 8,000 Caucasian females in this same age category. This means that your business has attracted just 5% of the potential customer base in your target market.

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Conduct the same analysis and comparisons for each age group and determine which categories present the most potential new customers.

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There are countless ways that you can use your valuable customer demographic information to construct effective sales and marketing campaigns.

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Next, sort your database by gender, age and zip code. This exercise will provide you with important information about exactly where your customers live in proximity to the location of your facility. As with the gender and age demographic analysis, look for “customer clusters” located within each zip code. Calculate how far each group of customers is traveling to reach your salon. When doing so, also determine how many competing salon businesses they will drive by along the way. Some software programs feature mapping tools that will actually plot and visually demonstrate your results.

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As you examine this data, you may discover that a sizeable percentage of your customers are traveling a relatively long distance to patronize your business. If this is the case, you should grasp the full reality of the situation and consider opening a second facility in this area, as you are highly-exposed and vulnerable to competitive actions.

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Once you have determined the demographic profile of your salon’s database, compared it with the demographic profile of your overall target market and then, plotted where your customers live in relationship to your salon’s location, you now can create effective sales and marketing strategies to maximize the profit potential on your existing database while also attracting new customers.

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Recognizing the “target rich” areas of your town (where the most potential customers live), you would develop marketing programs designed to reach these specific audiences. For example, you could begin by sending an email to all your female customers between the ages of 30-39 offering them the opportunity to “Bring a Friend for One Week of FREE Tanning or Spa Services” (red-light, sauna pods, etc.). More than likely, these customers have friends within the same age groups who have never set foot in your salon. Similar special promotions, when creatively and professionally developed and executed, can produce significant results.

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While this medium has gone out of favor in our high-tech world, do not dismiss the effectiveness of an old-school, direct mail marketing campaign. I have personally noticed that I am receiving a lot less “junk” mail than I did in years past. Consequently, when I do receive a well-crafted, value-based offer from a local business, I am more apt to pay attention to it and actually respond.

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I recently received a postcard in the mail from a local car dealer offering a special price on an oil change that I just couldn’t pass up. Had it been emailed to me, it probably would have been deleted.

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There are countless ways that you can use your valuable customer demographic information to construct effective sales and marketing campaigns. This article is designed to motivate you to think outside the box and test new methods, rather than regurgitating the same-old “Gilligan’s Island” themed advertisements.