We, at Optyn, have two specific jobs when it comes to helping our small business customers:
1. Increase their Reachable Audience, and
2. Engage their Reachable Audience.
What is Reachable Audience and why should small businesses care?
You are probably thinking to yourself: I don’t hear this term in marketing a lot but it sounds important. Well, we truly believe that it is a critical measurement of your potential success as a business owner. Reachable audience is a critical part of our business and we make every effort to make sure that our customers (small businesses/merchants) feel the same way about it.
So what is it? Reachable audience is all of your existing and potential customers that you can reach when you are engaging them through various marketing methods. Reachable audience consists of people who have opted-in to receive some kind of communications (usually marketing related) from you.
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Why small businesses need to care?
So why should small businesses care? Well, few reasons:
- The bigger the better.
The bigger your reachable audience the better it is. The first concept of marketing is exposure and your reachable audience gives you the ability to attract more eyeballs on your business and marketing efforts.
- The bigger, the more impactful your marketing dollars will be.
Simply put your ROI (return on investment) will be much higher. When it comes to marketing spend, an initial percentage of spend is not incremental and is part of the spend regardless of your reach. (For example, the time/resources to setup/consult a google adwords campaign for example.)
- It’s a vital sign of growth and healthiness.
Sounds like something your mother would say but it’s true. Reachable audience that reaches critical mass can sustain itself. This translates into your business having enough customers from which to pool.
What is the most important aspect of a reachable audience?
The most important aspect is your willingness to grow it. You have to be willing to do whatever is necessary to attract and convert potential visitors (online and instore) into your reachable audience. This means being proactive, offering incentives, and being creative. Optyn helps you accomplish that and in my next article I will give you a few pointers.
Why should it be a critical metric?
It has an overall impact on all of your other metrics. It might not directly affect each metric, but it is important to take reachable audience into account when analyzing metrics so the reliability of the metric can be assessed. For example, a 10% conversion factor would be more meaningful and reliable if it was based on the performance of a reachable audience of 5,000 as opposed to a reachable audience of 50.
How to calculate your Reachable Audience.
This is pretty straight forward. You should add up the components detailed below. In one of my next articles, we will discuss a Reachable Audience Formula that helps you give more context and dives deeper into the Real Reachable Audience.
A basic formula for your reachable audience is as follows:
RA = Sum of (Email Subscribers + Facebook Likes + Twitter Followers + [other social media accounts]) ÷ Customer Overlap Rate*.
*Customer overlap rate is usually calculated at 15-20%, but will vary depending on your business and category. There are a few ways to calculate this that allows you to get a unique reachable audience count, which we will discuss in later articles.
Ok, fairly simple and a little bit insulting you might think! Well this is just one simple way of looking at it. Of course, once we throw in a weight factor of each type of audience along with the type of network engagement rates, you will see just how complex it can become. But for now you should just start with the basics. If you really want to know about this kind of stuff, in later articles, we’ll explore the true calculation of your Reachable Audience and how you can simply accomplish this.
Hopefully this opened up your appetite for more. Next time, we’ll discuss a few easy and free ways to grow your Reachable Audience.