What does your typical customer look like? Many people answer this question very broadly, but it’s much more helpful to your business if you narrow the definition down. In fact, the narrower you make it, the better. This typical customer then becomes your target market.
In this blog, we’ll explore why this is important. We’ll then look at the steps you should take to define your target market in next week’s blog.
Not About Excluding Customers
One of the concerns people have when asked to define their target market is that it will exclude other types of customer. After all, in most businesses you have a varied range of customers.
Defining your target market does not mean you are excluding customers or ignoring those that don’t fit the definition of your typical customer. You can still sell to them, advertise to them, and create solutions (products or services) for them.
Defining your target market is, instead, about understanding who your typical customer is. They are crucial to your business, after all, as they are the core of your customer base.
When you understand your typical customer, you can then start tailoring your offering to make sure it is appealing to them first and foremost. This is important as people typically don’t buy products or services. Instead, they buy solutions. This could be a solution to a need, a desire, or to solve a problem.
You need to understand the solution your typical customer is looking for and that starts with figuring out who they are.
What A Defined Target Market Looks Like
Defining your target market is simple for some businesses. A fashion retailer stocking clothing aimed at young women aged 18 to 30, for example. This company may also include interests in their typical customer description as well as marital status, income level, and more.
Doing this is more challenging in other industries and sectors where the target market is less obvious. It is still an important exercise to do, though. Here’s why.
Benefits of Defining Your Target market
- Avoid alienating them – as already mentioned, you can still have a varied range of customers when you define your target market. You can also put in place initiatives to attract and retain customers that don’t fit the typical customer definition. By defining your target market, however, you will ensure you don’t do anything that puts off your core customers in the process.
- Makes you more appealing than your competitors – your customers want to understand that you really get them, i.e. you understand their pain points, desires, needs, and wants. You can demonstrate this more effectively when you know what your typical customer looks like.
- Helps you create more effective advertising campaigns – again, you don’t have to just advertise to the typical customer. When you know who the typical customer is, however, you can create campaigns that are more effective. In other words, that give you a better return on investment. This involves everything from selecting the right platform to advertise on to putting the right content in the ad.
- Helps to focus your business – your typical customer is the core of your business, so it makes sense to focus on their needs. By defining who this is, you can ensure new products, initiatives, and more will be appealing to the target market
- Easier to build closer relationships with your customers – it is much easier to build a closer relationship with your customers when you know who they are. This creates customer loyalty.
The next stage is to take the necessary steps to define your target market. We’ll look at those steps in the next blog.
In the meantime, if you need help and advice with your business, please contact a member of the Gilroy Gannon team today.