We have seen it numerous times, businesses not realizing they are missing a huge opportunity because they are either targeting the wrong market entirely or so focused on one target market they don’t notice the large chunk of people coming from another.
It’s crucial that businesses find their prefect target market. Before diving in you must first understand that a target market does not encompass your entire selling market. A target market is those who really want or need your offering, the people most excited about your product, and most likely to buy over others. These are the people you want to direct your marketing campaign towards.
Here are some tips for finding your perfect target market:
1. Gather information about your company
Figure out what problems your product/service solves. Be as specific as possible as this will help you narrow your audience down. Once you know the problem you’re solving, find the characteristics of those that have the problem.
Next, identify what features and benefits your product/service offers. Features are something your product has or is, while benefits are the outcomes or results that users will (hopefully) experience by using your product or service.
The overall question here is, what will the customer get out of using your specific product or service?
2. Analyze your current customers
The best way to find your target market is by learning who is already buying your product/service. Learn their demographics, interests, behaviors, what benefits they get out of the product/service. You want to know how they think and act.
Once you have a general idea of your current customer base, you’ll want to highlight the similarities between them to come up with your top customers.
Website and social media analytics are great resources to gather this information. Analytic tools help to see who is visiting, buying, and exploring your website or social media. It also shows how long they spend exploring your website, where they’re located, what industry they work in, their interests, and more. Do not be afraid to also reach out to your existing customers to survey them too.
3. Analyze your competitors’ customers
You can find out a lot about your potential customers by researching your competitors. This research will show if competitors have been successful at attracting specific types of customers and whether or not you should be trying to attract those customers too.
You can learn basic information about your competitor’s customers by looking at their social media accounts and searching through their followers and likes on their posts. If your competitor has a physical store you can also check out who is shopping there.
4. Conduct market research
Conduct secondary and primary research to gain more insight. Secondary research is any outside research done about your company or industry. Gather information from other resources that will help find your target market. Primary research is research done by you. Create a survey to gather information on your current customers and everyday people. Ask about their demographics, interests, perceptions of your product and your competition, what services or products they would like to see, etc. Ask any questions that would prove helpful in finding your key market.
5. Complete your customer profile
Once you’ve gathered all the information you can, compile a complete profile of your perfect customer. If you offer more than one product or service, you might have multiple target markets. Your profile should include both demographic and psychographic information. From here, you can work on how best to market and advertise to your target market.
The most important and toughest thing to avoid in finding your target market is making assumptions. Let the information you gather tell you who your best and most popular customers are, do not draw your own conclusions.
You must also note that your target market is flexible and always evolving. Knowing who you are targeting and continually refining it will ensure you’re on the right track.