The dangers of broadening your target audience.
"Expand your target audience, and you'll increase your chances of sales and upselling." Behold a popular opinion amongst cowboy consultants and slick sales folks on LinkedIn promising to attract more leads and double your revenue.
They're basically saying, “Attract more people, and you'll sell more.” Makes sense, right? Wrong!
As with most marketing, an open door is rarely the best strategy. Let's take a closer look at the hidden dangers of this seemingly obvious advice and prove once more that effective marketing is about focus, not breadth. Including real-life examples of how increasing their target audience went terribly wrong for famous brands, plus an example of how to do it right. Let’s go.
DILUTION OF YOUR BRAND IDENTITY
When you broaden your target audience, you risk diluting your brand's sharp edge. Your marketing message becomes more generic to appeal to more people. As a result, you lose the unique positioning that makes your brand truly attractive to the customers who matter.
INEFFICIENT USE OF MARKETING BUDGET
The bigger your target audience, the more expensive your campaigns become. You have to invest more in ads and content to reach a wider group. This leads to higher costs per acquisition and often a lower ROI. Trying to reach a broader audience on a limited budget is like trying to catch an elephant with a butterfly net.
QUALITY OVER QUANTITY
A larger audience often means fewer qualified leads. If you're trying to appeal to everyone, you'll attract people who were never planning to buy from you. This means your sales and support teams will spend more time and energy filtering out irrelevant leads, wasting resources that could have been better spent on your core audience.
LOSS OF BRAND LOYALTY
Constantly expanding your audience can alienate your current customers—your loyal ambassadors. These people appreciate you because you stand for something specific. When you water down your brand message to appeal to a broader audience, they may no longer feel connected. Building loyalty takes time, but losing it can happen in an instant.
REAL-WORLD F*CK-UPS
You want proof? Fine. Let's talk about Gap Inc., the classic American clothing retailer known for its clean, iconic branding. In 2010, Gap decided to broaden its appeal and modernize its brand image to attract a younger, more fashion-forward demographic. The company ditched its classic blue box logo, which had been synonymous with the brand for over 20 years, and replaced it with a generic, modern-looking design.
The backlash was immediate, intense, and real. This clusterf*ck of epic proportions went viral and was an absolute disaster. Loyal customers who loved the brand for its timeless, reliable style felt alienated. Within just six days, Gap scrapped the new logo and reverted to the original design.
More proof? In its quest for rapid growth, sportswear brand Under Armour expanded its product lines and target demographics, aiming to compete directly with industry giants like Nike and Adidas. This aggressive expansion in the mid-2010s diluted the brand's core identity, which was originally centered on high-performance athletic wear.
To capture a larger market share, the company ventured into lifestyle and athleisure segments. This shift diverted attention from their core performance-driven products, leading to a loss of authenticity and credibility among their primary customer base. By attempting to appeal to a broader audience, Under Armour's marketing messages became less focused, weakening its unique positioning in the market:
Revenue decreased 10% year over year
E-commerce revenue decreased 25% year over year
In 2024, 65% of Under Armour's sales were on promotion, and only 35% were at full price. From their 2015 peak, the company's sales declined 87%, losing $18 billion in market value.
Currently, they’re working hard to get the shit back into the horse. Their focus is back on performance products, eliminating executives and consultants to streamline operations, and restoring the brand to a full-price business.
So, how about an example of a brand that gets it.
Patagonia has carved out a niche in the outdoor apparel market by standing firm in its commitment to sustainability and environmental activism.
Unlike other brands that expand their target audience in search of growth, Patagonia has remained laser-focused on its core customers—outdoor enthusiasts passionate about environmental conservation.
Instead of trying to appeal to everyone, Patagonia has expanded thoughtfully within its niche. For example, they offer repair services and second-hand gear through their "Worn Wear" program. This initiative caters to their eco-conscious customer base while staying true to their brand values.
THE KEY LESSON? FOCUS ON YOUR NICHE AND DEEPEN RELATIONSHIPS.
SEGMENTATION AND DEPTH
Rather than trying to broaden your audience, dig deeper into the segments where you're already successful. Understand their specific needs, challenges, and aspirations. By targeting these segments with personalized campaigns, you increase relevance and trust.
THOUGHT LEADERSHIP AND AUTHORITY
Instead of trying to reach everyone, focus on establishing yourself as an expert in your niche. Share insights, case studies, and valuable content that genuinely helps your audience. This positions you as the go-to expert in your field, which is far more valuable than mass marketing.
UPSELLING AND CROSS-SELLING TO EXISTING CUSTOMERS
One of the most effective ways to boost revenue isn't by attracting new customers but by creating more value from existing relationships. Ensure you understand your current customers and offer solutions aligning with their evolving needs. Rewarding and deepening loyalty is far more valuable than constantly chasing new customers.
THE BOTTOM LINE?
Effective marketing is about focus, not breadth. Don't blindly expand your target audience in the hopes of increasing sales. Successful brands know: it's not about how many people you reach but who you reach and how you impact them.
So, the next time someone suggests expanding your audience, ask them: would you prefer to have 1000 loyal customers or 10,000 people who don't even know why you exist?
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Hey! I'm Jeroen Meulman; I started and run Biarritz to help brands and brand ambassadors become a hell of a story that crowds love, crews treasure, and competitors envy. Feel free to contact me at +31 6 22 70 25 37 or jeroen@biarritz.agency. Or better yet, schedule a Rendezvous at your convenience.
