Marketing to Lower Income Audiences
Recently, we reviewed an article from Bizfluent.com, regarding how to market to lower income audiences, and we thought the key takeaways were worth sharing to our pharmacy friends. Before diving in, we would like to note that these are broad generalizations. Every neighborhood is different, and the information below is meant to provide you with some insight and a starting point for things to try in your community.
First and foremost, according to federal poverty guidelines as of 2019, the poverty level for a household of four is defined as an annual income of $25,750 or less. Additionally, the poverty rate in the United States is 11.8% and while this is down compared to 12.3% in 2017, poverty still affects approximately 38.1 Million people nationwide. Knowing this it is easy to see why so many pharmacies that we talk with are looking for help reaching this demographic.
Within the article, there were five main things to know when targeting lower income households.
Avoid perceived stereotypes. Low-income shoppers are not always just concerned about the cost of a service or product. Studies have shown that low-income shoppers will pay for something if they consider it to have value to them. Research your target markets thoroughly, design marketing that appeals to long-term benefits and focus on the value of your product or service.
Appeal to benefits. Low-income shoppers often perceive the value and the benefits they’ll receive as nearly, or even more important, than the price. For instance, low-income consumers are usually willing to buy products and services that lead to career and educational advancements, according to the Harvard Business Review. Don’t be vague. “Get healthy” is not a benefit worth pursing whereas “Taking statins can lower your levels of CoQ10 which may contribute to high blood pressure and heart disease. Talk with our pharmacist to see if adding CoQ10 to your regimen is right for you.”
Package products and services. Shoppers with less disposable income often look at the total cost of a product or service rather than the cost of each item. Consider starting a subscription program to help sell front-end products rather than focus on individual products throughout the year. For a small monthly fee, patients will get a monthly care package to keep them healthy all year long.
Go where the consumers are. Low-income groups spend more of their time online than any other income population, according to Nielson data. They spend an average of nine hours per month on social media sites alone and stream video and watch more daytime TV than any other segment as well. Online marketing targeting low-income populations through pop-up ads and special offers can be successful. Interactive ads delivered with streaming video may be particularly useful as well.
Fulfill consumer needs. Meet customers at their level. Show low-income consumers how your product or service, at a lower cost, offers the same benefits and quality of higher-priced brand name items. For example, showing how a high-fiber diet leads to healthier, longer lives, with fewer instances of cardiovascular disease can help sell food products. Research your target markets to find out what they need and specifically target those priorities.
Being in a lower income area, doesn’t mean your business has to struggle. All it takes is a bit of repositioning and creative marketing to ensure your message is framed in a way that appeals to your customers. For more ideas or help generating a marketing plan, email firstname.lastname@example.org today.
Original Article: https://bizfluent.com/how-2317682-market-lowincome-group.html