Defining your target market can sometimes feel like trying to find a needle in a haystack. The ultimate goal? Pinpointing the individuals most likely to engage with your services or products, or to align with your organization's values. So, where does one begin to locate this information? Firstly, ascertain whether you're already focusing on a specific demographic. If you're not, the following steps will aid you in establishing who your target market should be.
Begin with Demographics
The initial move in defining your target market should be to explore the demographics of your prospective customer. These are characteristics like age, gender, income level, and education. Although demographics provide a valuable framework for understanding your audience's behavior, they may not always best predict who will engage with your offering.
A handy resource for gaining a broad perspective on demographics in a given region is the Small Business Builder from the US Census Bureau.
Invest in Customer Research
Market segmentation research is a powerful tool for classifying consumers based on their attitudes, values, and lifestyles. This data can help identify your target market and provide insights into their perceptions of your product or service. Furthermore, these insights can illuminate the lifestyle choices of potential customers, assisting you in developing resonant messaging.
To delve deeper into segmentation and its role in marketing strategy, explore our blog post, "Market Segmentation: Paint a Picture of Your Customer."
Focus on Existing Customers
Pay attention to your current customers. They’re already familiar with and trust your brand, and they’re willing to purchase your product.
Review your CRM (Customer Relationship Management) system, which should contain pertinent contact information. If you don't have one, it's highly recommended to create one, even if it's just an excel spreadsheet. Use surveys to gather more data from your current customers. Offering incentives like discounts can boost response rates. Alternatively, if you maintain a small customer base, you could individually reach out to them, seeking feedback on their experience. As a token of appreciation, consider sending them a coffee on you via a service like THNKs. (Referral Link Here)
Examine Customer Buying Behaviors
Delving into your target market also entails examining:
The buying process in its entirety. Consider the customer journey from problem to solution. Are there standout aspects of the process that hold more weight than others?
The buying cycle from start to finish. How does your product integrate into this cycle? Can you identify any pivotal moments where you could boost purchases or conversion rates for other products in your brand?
The decision-making process. Identify the influencers in their decisions (friends, family members, influencers) and consider how you can involve them in your marketing strategy while maintaining respect for personal preferences and privacy concerns.
Use Competitor Data
Lastly, exploit competitor data. It’s a treasure trove of information, shedding light on the market, customers, competitors, and your brand.
Competitor products can inspire new feature ideas or value propositions to propose to customers. They can also assist in pricing your product or service by revealing what the market is willing to pay for similar offerings.
To narrow down your target market, you could:
Analyze demographics. What are the age, gender, and education levels of your ideal customer?
Conduct market segmentation research. Understand their values and aspirations in life. What is their socioeconomic status? Are there any hobbies or activities unique to them?
Concentrate on existing customers. Select a few of your most successful products/services and see who bought them. If you lack data on this, find a few individuals who fit the demographic characteristics and ask them why they chose you!
Conclusion
This article should provide a useful toolkit to identify your target market. Remember, honing your target market is a pivotal step in any marketing strategy.
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