Before starting a business or launching a product, you need to know your customers. But how? Knowing your target audience can improve your advertising and marketing efforts. Customer profiles are ideal for building a relationship with your customers and finding the best way to serve them. Here are seven helpful tips for identifying your potential customers.
1. Get to Know Your Demographics
The first step towards to identifying your target audience is to create a demographic profile of your potential customers. This includes information such as age, annual income, gender, location, marital status, and occupation. It’s important to know which age group you’re trying to target since each generation has different tastes. For examples, a hip clothing brand would target men and women aged 18-28.
2. Use a Customer Industry Analysis
You can compare your customer industry to the U.S. census composition statistics for your target audience. The demographics you chose should reflect the geographic area that your brand sells to. Software companies would target most customers in the U.S. You can identify your customers through a customer composition by company size or industry that are different from the composition of companies within that geographic area.
This allows you to see patterns in your customer profile that helps you notice which characteristics are associated with needs. You should also consider your brand’s history of targeting your customers to ensure those differences aren’t not reflected on previous strategies. Your conversion rates can also help you notice any segments or sub-segments that’s not part of a poor marketing campaign.
3. Do Research on Your Competitors
The next best way to identify your customers is to watch your competitors. But you shouldn’t try to reach a mass market. Instead, you should niche down as you check out your competitor’s target audience. Not only should you target your competitor’s niche market, but you should also research markets that you could reach. For example, affordable software may not be used by corporations and enterprises, but small to medium-sized businesses might benefit from it.
4. Analyze Your Products
Another way to identify your target audience is to conduct a product analysis. Highlight the benefits of your product and analyze which audience would purchase it. For example, your product might be a massage chair that relieves pain and tension. With these benefits in mind, you can target a customer base that’s between the ages of 20 to 50. Since it’s an expensive product, those people who are interested in this product would have to know the features of it.
5. Read Industry Blogs & Forums
You can also reach potential customers through industry blogs and forums. Most customers love sharing their input on blogs and forums. You can find the top websites in your industry and notice what comments are saying. Social media is another effective tool for finding potential customers. While it’s a time-consuming process, online media can help you save time and money when it comes to building a relationship with your customers.
6. Use a Unique Approach
Don’t rely on outdated methods such as cold calls and cold e-mails to reach out to potential customers, you can use something more interactive than live chat. Integrating live chat on your business website allows you to connect with your customers easily and effectively. You can also determine the demographics and psychographics of your website visitors. This allows you to tailor the customer service experience and market products to those customers.
7. Evaluate the Psychographics
After you get to know the demographics of your potential customers, it’s time to focus on the psychographics. This includes their interests, lifestyle, personality traits, social norms, and values. To ensure that your products and services are a hit with your customers, you should figure out how those products or services will positively impact your customers. Maybe they’re tech lovers who will enjoy the launch of the latest smartphone. Or, maybe they’re social people who will enjoy the fast and affordable internet service they’re about to receive.
You should determine which exercises can help you identify potential customers. You can try all or some of these methods. This can help you improve on your business model, customer service, and products or services.