Who are your target users? To create a marketing strategy that sells, you must have a definite answer to this question. So if you haven’t defined your target audience, here are some tips to help you.
Every startup must streamline every business strategy. It’s the only way to compete with large companies and their oversized budget. Thus, when it comes to marketing strategies, it is all about defining your target users.
It’s a common misconception that catering to the general public helps you sell better. In fact, a broad target market puts some of your budget and resources to waste. Tending to a specific niche helps you focus your tactics on people who are likely to buy what you’re offering.
Do you need a boost in the right way to define your target users? Here are some pointers that you can take note of.
3 Types of Target Users to Consider
When it comes to marketing, there are three kinds of niches you can target. Learn their differences from each other, so you can craft a way to target them effectively.
It’s the most common target user for every business. This pertains to individuals who buy consumer goods or services for personal or household use. Data from the U.S. Bureau of Labor Statistics cites that food and vehicles are the commonly bought consumer products in the market.
The reseller acts as a middleman between manufacturers and consumers. As market intermediaries, wholesalers and retailers buy products and resell them for revenue. Moreover, they also connect consumers looking for a specific service to the right provider.
3. Industrial Target Users
An industrial user buys products or services to produce another product. Or their purchase is used for their daily operations to cater to another set of target users. An industrial user can be an individual, group, or organization in need of raw materials or outsourced services.
Top 8 Tactics to Identify Target Users
Make it easier to determine how and where to market your brand. Create a clear profile of your target users for a more effective marketing strategy. The following tips can help your startup define its target audience.
1. Examine the benefits you can offer.
Look into the reasons why customers buy from you instead of other companies. With this data, you can pinpoint the common characteristics of your target users.
Here’s what you can do. In one column, write the product or service features. On its side, write the benefits it offers to your potential customer. Once you have the list, write down the possible target audience who needs those benefits. And there you have it, you now have base information to start defining your target users.
2. Do your market research.
Okay, you now have a basic idea of your potential customers, right? Use that information as you perform a SWOT analysis for your business.
Since you know the whos-and-whys, you can better analyze your data for more opportunities. In a way, this will help you expand your understanding of your target users and what makes them tick.
3. Dive deep into your current customer base.
To learn more about your potential customers, no need to look further. You can use the existing ones to gain insights into your target user’s characteristics and buying behavior.
You can utilize customer surveys and focus group discussions. Or use tools, such as Google Analytics or Facebook Insights to see who interacts with you the most. Even a simple in-store conversation of their likes and dislikes can assist in achieving your goal.
4. Perform competitor analysis.
Check out who your competitors are targeting. Likely, that they have already done the competitive market study previously. Try to look at who they are interacting with and create a profile of their customers.
However, don’t jump into the same boat readily. Examine whether the market niche they are targeting is saturated or not. If so, you can use their information to discover an overlooked target market instead.
5. Be specific in profiling your target users.
Decide on a specific demographic to target with your marketing strategies. Use the data from your surveys and market research to point out the following factors:
- Marital status
- Income level
- Education level
You need to create an audience segmentation for your branding message and techniques to work effectively. After examining your data, try to compare whether the same patterns are manifested in your current customer base. If not, then you may want to review your profile again.
6. Observe psychographic data closely.
What is psychographic data? Well, simply put, it is the personal characteristics of your target users. It consolidates your potential customers’ behavior, attitude, personality, interest and hobbies, values, and lifestyle.
7. Track industry trends, updates, and news.
The market is always changing—most successful startups know it. That is why they constantly track the movements of product trends and shifts in buying patterns.
Remember that world events and other scenarios can influence your target user’s market behavior. Thus, regularly scanning industry publications, online business journals, newspapers, and special reports can help.
8. Update your target user profile from time to time.
For any changes in your business landscape, the need to adjust your demographics may also arise. So reevaluate your decisions on some occasions. Consider other factors that weren’t there before. And do not limit yourself to the initial target user you have created previously. The trick is to find a balance between past and present data.
Target Users: Why Should I Know You?
There are reasons why you need to determine your target users. Mind you, it doesn’t only revolve around marketing strategies.
Allocate budget and resources correctly
Having a targeted audience means streamlining your resources towards people who are likely to buy from you. It limits the platforms you need to play around with and crafts the brand message that works. Therefore, you avoid wasting money on other media that don’t help you reach your target users.
Build a stronger customer-business relationship
Knowing who you’re interacting with helps you offer specific solutions to their needs. It also makes your target users engage with your startup business more. Moreover, when you use personalized content, it makes you stand out from your competitors.
Discover opportunities for expansion
As you assess your target user’s profile, you may also discover unexplored or underserved areas in the market. This will also help you evaluate franchising opportunities or open a new location.
Defining your target users can be hard, but it is worth it.
At times, finding your target users takes time and effort. But once you know your target audience, creating a marketing strategy becomes easier. Once data is prepared, you can also streamline all business strategies for your startup.
So get a better return on your investment by focusing on your target users. Save money and resources, which can be allocated for expansion or development.
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