Know Your Target Audience for Your Business
Do you know the target audience for your business? What are they looking for? In today’s article, we will talk about the target audience, market segmentation and some strategy that can be very useful without forgetting the tools that help to get to know you and your customers.
1. What is your target audience?
The target audience is that group of people who need our products and come to us before the competition. It is the ideal customer, but you have to know how to find them, where to look for them and what you will say.
It is better to previously carry out this type of study to focus your efforts on obtaining benefits, that is, improving the precision of attraction.
2. How to classify your target audience?
There are a few features that can help you classify those customers. For example: age, gender, income level, education, shopping habits, occupation or profession, marital status, family situation (children or no children), geographic location, ethnic group, political affiliations or inclinations, hobbies and interests, etc.
You don’t need to include many filters in the analysis. Still, it would be best to remember that the more precise segmentation is, the more precise the result is.
Indeed, within your target audience, there are differences between the people who use your product every day, from time to time or for something in particular or, simply, for different things.
These groups of people within your target audience are the market segments, which divide the market into smaller groups whose members share specific characteristics and affinities.
3. What is market segmentation for?
Market segmentation serves to anticipate similar responses to groups of people, or segments, with similar behaviours. You measure all that in variables of your company that allow you to discover your customers’ needs.
4. Let’s start segmentation!
You can segment the market according to several criteria:
-> A sector of activity: if they are restaurants, supermarkets, neighbourhood stores, etc. If they are from the same sector, try to create subgroups based on the type of products (household clothing store, children’s clothing store, etc.).
-> Size of your company: according to your company’s volume of activity or billing, if it is easier for you.
-> Buying habits: according to the type of products they buy from you and their evolution.
And on the other hand, you can carry out different strategies:
-> Without differentiating: Use the same strategy for all segments.
-> Differentiated: Choose at least two segments and offer a product adapted to each of them.
-> Concentrated: Focus only on one segment. For example, you want to get closer to teenagers or carry out the action in a particular city.
As for the tools that will help you in this process, we advise you to use the Business Model Generation and focus on point number 1, “Customer segments”. Who are you creating value for, and who are your most relevant customers?
You can fill it with post-its so that it has a more dynamic character. That will help you update it as your company evolves.