Target Simple Over Cool
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A discussion about why targeting "simple" customers in middle America often leads to better business outcomes than chasing trendy coastal demographics.
Key Customer Demographics to Target
- Overweight, overworked moms in Texas vs coastal millennials
- Middle America women ages 30-60 show highest loyalty and lowest churn
- Middle-aged customers with disposable income but limited time
- Customers with established buying habits and brand loyalty
- People outside major coastal cities
Why These Demographics Work Better
- Higher customer retention rates
- More loyal once they commit to a product/service
- Less finicky about trying new things
- Harder to convert initially but stick around longer
- Make decisions more deliberately and stay committed
Real World Examples
-
Quilting Industry ($4.5B market)
- Average quilter spends $8-9k per year
- Highly targetable (99% on Facebook)
- Strong community aspect (retreats, shows, local shops)
- Multiple 9-figure subscription businesses
-
Applebee's Strategy
- Targets "Jim Bob" demographic (50s-70s with money)
- Creates artificial neighborhood connection
- Customers overlook food quality for community feeling
- Represents stability in changing times
Business Approach
-
Start with premium pricing then move down
- Easier than starting cheap and raising prices
- Exception: freemium models work differently
-
Focus on Simple Value Props
- Avoid chasing trends
- Build on established behaviors
- Target stable, long-term needs
- Solve basic problems well
Common Mistakes
- Building for cool coastal millennials
- Chasing fads instead of stable markets
- Overlooking middle America demographics
- Being too focused on innovation vs solving basic needs
- Assuming coastal preferences reflect broader market
20:18 - 22:07
Full video: 01:11:04SP
Shaan Puri
Host of MFM
Shaan Puri is the Chairman and Co-Founder of The Milk Road. He previously worked at Twitch as a Senior Director of Product, Mobile Gaming, and Emerging Markets. He also attended Duke University.