Why knowing and understanding your customer is essential to effective marketing
We have looked at why it is important for your customer to understand your business in a previous blog. Makes sense, right? How can you expect to attract customers if they don’t understand what you do and are not sure if they need your product or service? Likewise, do you know your customer? How can you expect to reach your customers if you don’t know who they are or where to find them?
To create and run an effective marketing strategy it is essential to know your target customers. Enterprenuer.com defines target customers as “a specific group of consumers at which a company aims its products and services”. Let’s pull two key words from this definition and put them together to help focus your marketing plan – specific aim.
First, make sure to identify the specific group of customers that you are trying to attract to your business. Are they millennials? Women over 40? Teens? You get the picture. Even once you know the group of consumers your product and/or service is geared towards, it can remain a pretty large group. Remember, we want “specific”. What are ways in which you can narrow down the vast number of consumers to a more focused target group?
There are a couple of things to consider when it comes to knowing your customer
You know your product or service better than anyone, so who do you think is going to use it most? Think about your product and what it does. What is it used for the most often? How is it used? Where is it used? Take your answers to these questions and use them to assess who needs this product and/or service the most? Consider multiple factors like age, gender, marital status, income bracket, etc. when narrowing down your answer. For example, a working mother of four children is going to have very different needs than a young bachelor that enjoys the single life.
What does your product do? Who is going to have the strongest need for your product? For example, a teenager is probably not going to have much interest in an upright vacuum with steam clean technology, but that mother of four? Big difference. Identify the specific need that your product or service answers and then match it to the group of consumers that possess that need. Start out with a broad spectrum, and then narrow it down until you reach your particular niche of consumers. This is referred to as the “funnel approach”, an example would be starting with gender, then narrowing it down to an age group within that gender, and then narrowing it down even further by income bracket to arrive at a more focused target group of consumers.
Take note of other businesses that offer similar products and/or services to yours. Who are their customers? What demographic tends to use their service or product? This can provide valuable insight as to who your target group will be. And can help you figure out some ways to make your business stand out against the competition.
Look within your own network as well. What do your friends and family of varying ages and backgrounds like to do? What sorts of products do they use? Ask them questions about why they use the product and what they like about it. Find out what they are drawn to when they see different marketing plans for the product. Use their answers to help you develop your own marketing plan for your product.
Conduct a market analysis for your business, suggested by Mike Kappel. Go back to the basics of information gathering- who, what, when, where, why and how. Look for the answers to these questions to help you narrow down the majority of consumers to your target audience. Know who your potential customers are, what they like to do, when they are most likely to see your marketing and purchase your product, where are they located, why do they purchase from you (or someone else) and then, based on all of these answers – how can you best reach them
This “how” is important. Once you have identified who it is you are directing your business towards, you need to understand them. The only way to successfully create a marketing strategy that works is to design and develop your marketing tools in a way that will speak to your target customers. You need to learn what makes them tick, what catches their eye and what is important to them in the products and services they purchase. Once you have an understanding of your customer you can effectively aim your marketing in their direction.
Get to know your target group’s interests, hobbies and how they like to shop. Take note of things that will help direct your marketing strategy. Does your target group listen to the radio? Spend a ton of time on the internet or watching TV? Do they go on social media? It will do you no good, for example, to center a marketing campaign around social media if your target group does not spend a lot of their time on a computer, tablet, or smartphone. On the other hand, if your target group are young consumers that are always on the go, then social media and internet-based advertising could be very powerful.
All in all, knowing your target customer group and then understanding them is a key factor in determining the effectiveness of your marketing strategy. I hope this has helped give you some ideas of what to look for as you bring more focus to your target group of customers and work on developing your marketing plan to specifically aim your product and/or service to them. Make sure to check out our other blogs for ideas on how to brand and market your business and build your web presence. Wishing you many happy and satisfied customers!