One of the things our business advisors hear day in, day out is “everyone is a customer”. No no no no no no no no.
This is one of the most common mistakes new business owners make. Not one single product or service in the world is wanted by everyone. Look at Enterprise Made Simple as an example.
Not everyone wants to start a business, which is fair enough. Not everyone is cut out for it. We know and acknowledge this so when entrepreneurs are looking for information about starting a business; we have left our information with universities, colleges, job centres and local councils. Just as a little example.
By defining your target market you will understand your audience. Giving you more return on your marketing both online and offline converting into more customers.
Audience research ideas to find your target market
to build a persona around your target market look at these 6 key things:
- Age and gender
- Spending habits
- Stage of life
Age and gender
You don’t need to get too specific here. It won’t likely make a difference whether your average customer is 26 or 30. But knowing which age demographics and gender can be very useful.
Understanding where your customers are geographically helps you make decisions like where your storefront needs to be or where to target online adverts to get the most from them.
How much money do your current customers have to spend? How do they approach purchases in your price category? Do they have specific financial concerns or preferences you need to address?
What do your customers like to do, besides using your products or services? Which TV shows do they watch? What other businesses do they interact with?
Stage of life
Are your customers likely to be college students? New parents? Parents of teens? Retirees?
Look at what your competition is doing
Now you’ve identified what your customer could look like, have a look at what your potential competitors are doing.
Looking at the competition helps to answer questions such as: are you going after the same target market? What’s similar? What’s different?
You can analyse your competitor’s marketing activities both online and offline to try and understand the thought process that has gone into reaching the right target market.
Who is your target market?
We have looked who your audience might be and what your competition target market is. Now it’s time to make a statement of who your target market is.
When making your target market statement, try to incorporate the most important demographic and behaviour characteristics you’ve identified. For example:
Our target market is Female aged 35-45, who live in Middlesbrough, and like to watch football.
There can variables that don’t apply to your business but they will help narrow down who your customer is. It could be an online service you provide so the location wouldn’t be a fundamental factor but you have other characteristics to use other than location.
Making this statement will help when it comes to marketing your product and ask does this advert match the criteria.
We are a Delivery Partner in the Business Compass Start Up 2 project. This is a business start-up project being delivered across Tees Valley to assist potential entrepreneurs to become enterprise-ready and ultimately self-employed. This is part-funded by the European Regional Development Fund