This article is for those who are just starting a business and for business owners who have been in business for a few years.
If you are just starting a business, defining who you serve (your target market) is a crucial first step in launching your business.
If you have been in business for a few years, it may be time to take a closer look at your current customers. As your business evolves and grows, your ideal customer (target market) may also change.
It’s important to periodically review your current customer base to see how it has changed over the years along with your business. Then adjust your marketing accordingly.
Doing this not only helps to attract and retain the “right” customers, but it also maximizes your marketing budget by focusing on the most profitable segments of your market. You can tailor your marketing efforts and product offerings to meet their specific needs and preferences.
Answering the following questions will give you a good start on clearly defining your target market:
1. Who is your ideal customer? You need to know demographics and psychographics. Demographics are where they are, how much money they make, age, gender, etc. Psychographics focuses on why they buy, what motivates them to buy, and what are their (sometimes ingrained) beliefs you have to overcome.
2. Why do you want to serve them? This could be the most important question you ask. The answer to this question is what will keep you motivated when the going gets tough. If you don't have a good reason for serving your audience or you are not passionate about what you are doing, then you may not last in business.
3. Is your story something your target market can relate to? Your personal story could have a big impact on how relatable you are to your target market. Having life experiences directly related to your target audience will help you connect with them on a more personal level. For example, I was just speaking to a guy at a roofing company and the reason he got into roofing was because he got scammed by a bad contractor when he had his roof replaced. So now he is in the roofing business and is an advocate for homeowners.
4. What value do you bring to the marketplace? Do you have specific training, knowledge, or experience that makes you an authority in your business? Based on your specific experience, can you deliver the value and transformation your target market is seeking? When they give you their hard-earned cash, they are expecting a transformation. They want something that makes their life or business better in some way. It’s important to paint a clear picture of the value you bring to the table and what that transformation will look like for them.
5. Is there a hungry market that wants and needs what you have to offer? And even more important, is this hungry market willing to pay you, and do they have the money to pay you?
6. Do you have a consistent way to reach them that is both cost effective and profitable? Will you need to spend significant amounts of money every month on advertising? Or will less expensive options, such as email marketing and social media, be effective strategies for engaging your target market? Will you need to join an organization or association to get to them? Or can you reach them organically by going to networking meetings or speaking in front of a group of hot prospects?
If you have an answer for all the questions above, you have good start on defining your target market. Taking the time to clearly define your target market will ultimately lead to increased sales and long-term success for your business.
As a business owner, it's easy to get caught up in the latest marketing trends and lose sight of what will move the needle in your business with better clients and more revenue. Going back to the basics, such as defining your target market, will be more effective than chasing the latest trends.
If you will take the time to answer the six questions in this email, you will be more confident promoting your product or service, you will have more fun and you will have more success.
Your business will evolve over time and things will change. You will learn by doing. Get started and figure it out as you go. You will make mistakes along the way, but that is part of the process. Consider the mistakes a learning experience and move on.