Why Most STP Strategies Miss the Mark (And How to Avoid It)

Why Most STP Strategies Miss the Mark (And How to Avoid It)

What is the STP Process?

The STP process is a structured way of identifying your target audience and positioning your offering to meet their needs. It involves three steps:

  1. Segmentation: Dividing the market into smaller, distinct groups based on shared characteristics.
  2. Targeting: Selecting the segment(s) that offer the best opportunity for your business.
  3. Positioning: Communicating your unique value to the chosen segments in a way that differentiates you from competitors.

Sounds simple, doesn’t it? Yet, many businesses fail to execute this process effectively.


Where Most STP Strategies Go Wrong

1. Targeting Everyone (and Reaching No One)

Trying to appeal to everyone is the fastest route to irrelevance. Many businesses are afraid to focus on specific segments, fearing they might alienate other potential customers. The result? Bland messaging and generic offerings that fail to resonate with anyone.

Fix it: Narrow your focus. Identify segments that align with your strengths and address their specific needs. Remember, trying to please everyone means pleasing no one.


2. Mistaking Data for Insights

STP strategies are often bogged down by an overload of data. Businesses spend too much time collecting demographic or behavioural data without turning it into actionable insights. Data is only useful if it helps you make better decisions.

Fix it: Use the data to ask meaningful questions. What pain points do your customers face? How can your product or service solve them? Don’t stop at knowing who your customers are—dig deeper into understanding what drives them.


3. Weak Positioning

Positioning is the backbone of STP, yet many businesses treat it as an afterthought. A generic tagline or a vague value proposition will not set you apart in a competitive market. Positioning is about shaping perceptions and creating a distinct place for your brand in the customer’s mind.

Fix it: Focus on differentiation. Why should customers choose you over your competitors? Use clear, compelling messaging that highlights your unique strengths and benefits.


4. Ignoring the Customer Journey

Your STP strategy cannot exist in a vacuum. It must align with the customer’s decision-making process. Many strategies fail because they overlook the stages customers go through—from awareness to consideration to purchase.

Fix it: Map your customer journey. Identify touchpoints where you can engage with your target segments. Ensure your messaging and positioning are consistent across all stages of the journey.


How to Build an STP Strategy That Works

Creating an effective STP strategy does not require a total reinvention of the wheel. Here’s how to make yours stand out:

1. Start Small and Specific

Focus on one or two key segments to begin with. The more specific your targeting, the more tailored and impactful your positioning can be.

2. Prioritise Value Over Features

Your customers don’t care about every feature of your product—they care about how it solves their problems or improves their lives. Position your offering around the value it delivers.

3. Differentiate Boldly

Be clear about why you’re different. Whether it’s price, quality, innovation, or service, your positioning must make your unique value obvious.

4. Test and Adapt

The market is constantly changing, and so are your customers’ needs. Continuously test your messaging, evaluate your strategy, and be prepared to pivot when necessary.


The Bottom Line

Most STP strategies fail because they try to do too much or fail to focus on what really matters: the customer. To succeed, you need clarity, simplicity, and a relentless focus on adding value to your target audience.

Stop overcomplicating the process. Get specific about who you’re targeting, craft a clear and compelling position, and ensure every part of your strategy aligns with the customer journey. That’s how you avoid the pitfalls of traditional STP strategies and create one that actually delivers results.

If you’re ready to transform your marketing strategy, now’s the time to rethink your STP approach. Simplify, focus, and win.

Andrea van der Loos

Problem Solver | Driving Strategy and Innovation in Tech, Healthcare & Biotech | Turning Ideas into Startups | Cambridge 🇬🇧 & Amsterdam 🇳🇱

2w

Excellent points, Keith! I really liked your emphasis on aligning STP strategies with the customer journey. For startups that are still in the process of defining their customer personas and value propositions, what’s the most efficient way to test and validate their positioning without overcommitting resources?

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Jyothi Karthiga

Result-Driven CEO | Transformational Leader | Strategic Visionary | Author & Public Speaker | Expert in Business Operations & Financial Planning | Advocate for Community Empowerment

2w

I agree, very well written. More gimmicks than the reality.

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