The first thing you need to learn when you start a business is that not everyone is looking for your product. You may have the best product in the market, but not everyone is going to need that product or look for it. That is why it is so crucial for you to determine your target market strategy.
If you do not identify your target market, you are going to end up wasting a lot of money on marketing to the wrong audience.
Not only that, but you will also have very low conversion rates and high customer acquisition costs. Untargeted marketing is a huge waste of time and effort.
When you are a startup, your time and resources are very limited. Instead of randomly agreeing to a large audience, you need to focus your marketing on the small segment of people who will actually interested in your product or service and probably buy from you in the future.
It has been found that there are two main reasons why startups fail. Around 40 percent of startups fail because they haven’t researched their market properly. Close to 30 percent of startups fail because they run out of money.
This is why identifying your target niche is the most important step when you’re starting your business.
In this article, we will be talking about how you can create your target market strategy so that you can start your new business the right way.
Take Time To Niche Down
It’s always good to start broad and then slowly niche down to your ideal audience. This is because if you start off with a really narrow audience, it’ll be tough for you to changes niches later.
Begin your startup journey by targeting a larger audience that may be interested in what you do. As time passes on, you can start figuring out what your audience seems to respond more to, or if there is a particular section of your audience that is more interested in your business than others.
You can then slowly niche down so that you provide high-quality products or services to your narrowed-down audience.
At first, you can generally segment your audience based on gender, location, or even age group. You will then be able to figure out which groups in your audience are losing interest in your business. Soon you would have eliminated all the wrong segments and end up with your ideal target audience.
Study Your Competition
Unless you have come up with a very innovative product, you most likely will have competition. Even if your business is unique, there will always be someone else doing close to what you do in your industry.
You will need to analyze your competition carefully if you want to find your footing in your industry. Find out what they do and see how you can do it better. Figure out who their target audience is. You can do this by looking at their advertisements, or even joining their email lists.
Once you have studied them carefully, find out what they’re missing. What audience are they not reaching out to? What advertising methods could they be using? What are they missing out?
Once you have the answers to these questions, you will be able to plan out your target market strategy effectively. Doing this analysis will help you get better at what you do and make a name for yourself in your industry.
Connect With Your Customers
Although it’s great to study your competition, there’s nothing more important than actually talking to your customers.
Communicating with your customers can help you understand what their problems are and how you can help them. Find out how you can make your offers better so that they actually help your potential customers.
Connecting with your customers will give you a pretty clear picture of who your target customers are, what they expect from you, and what is the best way you can deliver your solutions to them.
Remember, market research is an ongoing process. You will not be able to figure out completely what your target market strategy should be. It takes time to get to know your target audience, and when you do figure them out, they’ll most likely change. People are evolving every day and so are their tastes and preferences.
It is up to you to constantly keep your ears tuned so that you can change and adapt when the need arises.
Create a Target Customer Profile
Once you have a basic understanding of your target audience, it’s time to create a target customer profile or persona. When you do this, you will be able to study your customers deeper and understand their buying habits.
When you create a target customer profile, you’re treating your customers as one single person. This will help you avoid selling to everyone by trying to please too many different people. A target profile helps you focus your marketing strategy on the one type of person who will actually buy something from you.
Make your target profile highly specific to your company and the type of business that you do. You can also have multiple target personas to help you segment your audience. Let’s face it – there’s not going to be just one type of person buying from you.
Say, for example, you’re selling clothing apparel. You need to have separate personas for different genders and age groups so that you can create separate target market strategies for each type of customer.
Once you’ve finalized the different customer profiles for your company, it’s time to find out the characters and buying patterns of each type. When you study each persona carefully. You will be able to cater to each one on a personal level.
Each target customer profile needs to be unique and specific. Do not give vague age ranges or descriptions for each persona. Instead, treat each customer profile as if it were a real customer. This way you will be able to understand them more deeply and market to them rightly.
Another effective way of studying your target market is to take periodic surveys. These could be surveys regarding recent purchases or even a survey based on some new product or service that you sold.
Surveys help you understand what aspects of your business you can improve upon and also show your customers that you care about them.
Send recent customers a survey on how they would rate your service and what suggestions they have for you to serve them better. Tailor your surveys in a way that you can also learn the demographics of your audience or their age, gender, location, interests, profession, etc. These details will help you shape out your products and services and make them better for your customers.
Surveys help you identify your market. You can easily find out who is using your products and how they are getting benefited by them.
When you have real customers buying your products and giving feedback, you can easily steer your business in the right direction and improve your products and services.
Study Your Website Traffic
Studying the traffic that comes to your website will also help you get a clear idea about who is interested in your business. There are many analytics and metrics that you need to study in order to truly know who is interested in your products and services.
In other words, your website traffic can tell you who your target audience is.
Google Analytics is a pretty helpful tool that helps you with this. You can check out your number of sessions, bounce rates, pages viewed per session, and even the average duration per session. GA also shows you the number of new users that visit your site every day.
You can create reports in GA based on the target customer profile and demographics that you have segregated your audience into. Google Analytics also shows you how many users have made financial transactions on your website, meaning they’ve bought something from you.
GA thus is capable of not only showing you how much traffic comes to your website, but also the quality of traffic and how much of that traffic is actually valuable to you and your business.
With all this information you can easily see who your target market is and cater to them specifically.
As you can see, identifying your niche audience and creating a target market strategy can be a very long process. However, if you do it the right way, the returns can be enormous. Not only will your business become successful, but you will also be able to help those who are really in need of your services.
Initially, you will have to make some general assumptions about who your target audience is and what they need, but as time passes, you will be able to narrow down your audience to the right people.
You can use analytical tools to help you figure out who is really interested in your business, and then create a persona for your customers.
Remember to create more than one type of persona for each type of customer you have. And create them unique and specific.
Take surveys and connect with your audience to learn more about them and the issues that they face.
Most importantly, keep adapting to your audience as they keep evolving.