When you have an idea to start a business, you have likely identified a gap in the market, i.e. a need that is not being fulfilled with the current products or services in the market. The best business ideas come from problems we have faced in the past while using certain products or services.
You’re thinking, “Someone else may prefer it if only it’s done this way”. That is your target audience, someone, a consumer just like you.
Why is it important to build a target audience?
The short answer is, so you do not waste money on marketing. Let’s dig into that a bit more.
Identifying your target audience allows you to run concentrated marketing strategies, which brings in real customers interested in what your business offers. You get actual sales conversion rates with a target audience with your marketing. Your business doesn’t make blind shots hoping to hit something; it aims perfectly at its target. Mind the metaphor. As you market your small business to gain trust and visibility, it is important to reach your actual consumers, i.e. target audience.
A business should be customer-oriented, so it is essential to understand your customers’ needs, which begins by identifying who they are. This also helps tailor your future products and services more and more to their requests as you grow. Your business improves by taking into account the feedback of its target audience.
Okay now. So, how can you build/establish/set up your target audience?
There are several questions a business owner must ask and find answers to in building a target audience. It spans various aspects, but it boils down to the following, “who are your products for?”, “where are they?” and “how can you find them?”. To build a target audience for your business, whether a product or service, you need to consider these and more.
Look at your current customer base.
In figuring out who needs your products or services, you must first look at your current customer base. Already, people are buying what your business offers, making them the first contact with your target audience. Now, you have to look for common characteristics and interests between them; why do they buy from you? The best way to achieve this is to conduct customer research in the form of surveys or interviews.
Create Target Personas.
As a small business owner, you cannot target everyone for your product or service. The idea behind creating personas is to streamline into specific segments that make up your target audience. This is especially helpful when you have a product that appeals to a wide range of people. Persona separates several target audiences as you can, for example, focus on either the family’s breadwinner or the support as your ideal customer. It differentiates between seasonal buyers and returning customers, and that also gives your business an edge in production.
Consider the right Demographics.
This asks the question, “where are they?”, “why would they use your products?” and “how and when do they need your products?”. You have to consider the demographics of your customers to determine how your product or service would fit into their lifestyles. It would help if you thought about the following factors: Age, Location, Gender, Income level, Education level, Occupation, Marital or family status, Ethnic background, Hobbies/interests, Personality, Values, and such. This tells you more about your target audience and whether or not your product is indeed suitable for them.
Reach your target audience.
The end goal of building a target audience is marketing. That is the primary reason for it. There are several marketing strategies a small business can adopt in reaching its proposed target audience. You have to make sure to find the media that targets your specific audience. For instance, if your target is women between the ages of 60 and 65, certain marketing campaigns might not be the best approach. One of the easiest reach available to small businesses is social media as it’s cost-effective and already targets ads based on various demographics and interests.
These processes might seem overwhelming and tasking, but they are an effective way to know and understand your customers. Once you get your target audience right, small businesses can grow and thrive in the industry. Please let us know your thoughts on this article.