As March Madness for women’s college basketball concludes, some intriguing decisions off the court are capturing attention.
Two prominent figures in the game, Flau’Jae Johnson from the University of South Carolina and Olivia Miles of Notre Dame Fighting Irish, have chosen not to declare for the WNBA draft. Why would such talented players put their professional careers on hold for another year of college play?
Both Johnson and Miles were considered strong WNBA prospects, with Miles projected as a potential number two pick. Their decision, likely influenced by their understanding of different fan bases and earning potential, offers a valuable lesson for small and mid-sized business owners: the power of market segmentation.
Your Market Has Multiple Segments. Choose the Best One for Your Business
While the WNBA holds considerable prestige, the landscape of college sports has shifted with the ability for student-athletes to be compensated. A significant advantage of the college game is its considerably larger and more passionately engaged fan base.
The WNBA, while a respected professional league, has faced challenges in building widespread traction, with teams relocating and the league's overall revenue lagging behind that of major sports leagues. Television ratings and merchandise sales haven't yet reached the earning power seen in other professional sports.
Conversely, women’s college basketball is experiencing a surge in popularity and revenue. Last season marked a historic moment when the NCAA Women’s Basketball Division I Championship Game garnered higher television ratings than the Men’s Championship Game.
The women’s college basketball segment is currently thriving. Fans demonstrate deep loyalty to their teams, fueled by their connection to their institutions. This inherent passion translates to strong support for the teams and their players. Moreover, women’s college basketball teams have a presence in many more cities across the country compared to WNBA franchises.
The disparity in fan engagement is evident when comparing the two levels. WNBA games often face challenges in attendance and media coverage. While figures like Dawn Staley, a successful college coach in a city of moderate size, achieve significant recognition and earning potential (reportedly $3.2 million annually), a WNBA head coach in a major market might not have the same level of visibility, even with a potentially lucrative contract.
The revenue streams associated with women’s college basketball can significantly exceed those typically seen in the WNBA. Paige Bueckers, another highly talented player who chose to remain in college, has reportedly earned $1.4 million through NIL (Name, Image, Likeness) deals. In contrast, the number one pick in the WNBA Draft might receive a 4-year contract worth around $320,000 in total.
This difference underscores the impact of understanding and strategically targeting specific market segments to maximize earning potential.
Is Your Business Targeting Profitable Market Segments?
Do your marketing efforts target clearly defined market segments, or do you primarily focus on broad categories like a city or age group? For your law firm, lawn service, or contracting business, does this level of segmentation truly matter?
Absolutely. Just as understanding their market segments influences the financial decisions of athletes like Flau'Jae Johnson and Olivia Miles, clearly defining your business's segments can significantly impact your company’s bottom line. Effective segmentation will guide your entire marketing strategy, particularly in the digital realm.
Consider these aspects of segmentation in your digital marketing:
Keywords:
In different regions, the same thing might be called by different names. For example, in the South, it’s often "soda," while in the Midwest, it's "pop." Similarly, the keywords potential clients use to search for your services can vary geographically and demographically. Is there a significant difference in search volume between "car crash lawyer" and "car accident lawyer" in your practice area? Understanding these nuances in language is crucial for effective keyword targeting.
User Personas:
Have you precisely defined the individuals you want to attract? If you operate a B2B business, different roles within a company will have distinct needs and perspectives. The owner of a janitorial service might prioritize cost-effectiveness, while the crew manager may focus on the efficiency and ease of use of the supplies. Tailoring your messaging to resonate with these specific personas is key.
Geography:
While location is a fundamental aspect of segmentation, avoid overly broad definitions. Instead of simply targeting a city, delve into specific zip codes and research the distinct characteristics and needs of different neighborhoods. This granular approach can reveal valuable insights.
The more detailed your understanding of your segments, the better equipped you'll be to offer relevant services and tailor your marketing messages effectively. You'll likely discover that certain segments are significantly more profitable than others.
Take the time to engage with your existing customers to understand their reasons for choosing your company. Analyze your sales data for patterns and trends. In the realm of digital marketing, your website analytics provide a wealth of information about your current audience and their behavior.
Continuously integrate these insights into your digital ad campaigns. Test different approaches and compare the results to your initial outcomes. Remember that not every change will yield positive results; knowing what doesn't work is as valuable as knowing what does.
Looking for Guidance in Defining Your Market Segments?
Identifying and effectively targeting the right market segments is crucial for sustainable growth. If you're finding it challenging to dedicate the time or identify a reliable partner to help you leverage digital marketing for growth, Acute Angle Marketing specializes in providing comprehensive marketing services for small and mid-sized businesses.
We go beyond simply managing campaigns; we function as your outsourced in-house marketing team, offering end-to-end services from strategic planning to campaign design and ongoing account management. We can help you optimize your digital marketing budget to achieve your growth objectives.
Ready to gain a clearer understanding of your most profitable customer segments and develop targeted digital marketing strategies? Schedule a consultation with one of our digital marketing experts to discuss your growth goals and explore how we can help you achieve them.