There are a number of benefits involved with adopting this strategy in marketing including the following:
•It helps a business understand the needs of its customer base more. This will help the company devise products and services that the customers want and more importantly need.
•A business can develop a product or service with a specific customer base in mind. This helps it stand out the competition and may secure continued growth and revenue.
•The primary target market can be identified and resources are then designed to target this group. This is known as Customer Relationship Marketing (CRM) and is highly effective in targeting the correct audience using the right messages.
•Marketing messages and strategies become more efficient as the company only contacts those they believe will be interested in their products. This means less money will be wasted on ineffective campaigns that do not reach the right customer base.
•The company can make savings as it only has to spend money to develop products and services for a particular group of people.