Are you spending more on marketing but getting less back? You’re not alone.
Most retail marketing strategies are built around outdated assumptions: that population size and commercial value automatically equal profitable customers.
The truth? This approach is costing retailers millions every year in wasted spend and missed opportunities.
The old targeting trap – population ≠ profitability
Legacy retail marketing metrics that mislead
For decades, retailers have relied on simple metrics like population density and overall commercial value when deciding where to focus marketing. On paper, it makes sense: more people, more spending power, more potential sales.
But there’s a problem. Population doesn’t tell you who your ideal customers are, what they value, or how likely they are to spend with your brand. The result? Huge marketing budgets spent chasing low-value or overserved audiences – often the same customers your competitors are already targeting.
Why this approach fails in today’s market
The cost of targeting over-served areas
Consumer behaviour has shifted. People shop across multiple channels, switch brands faster, and make decisions based on personal lifestyle factors, not just geography.
Yet many retailers are still pouring money into the same high-population postcodes year after year.
The result:
- Rising customer acquisition costs
- Declining ROI on campaigns
- Missed opportunities in areas where high-value customers actually live
