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DECLINE
May 18, 2020
5 Steps to Discovering Your Target Market
“So who is your target market?”, I asked a new client. We were sitting in a quaint coffee shop sipping on our chai lattes while I asked her some questions about her new business.
“My target market is men and women age 18-65 years old. I think everyone needs my product,” she said. My eyes widened and I set my pencil down for a moment.
We had a lot to figure out before we could move on to create her marketing strategy.
As over-the-top as that story sounds, this is not the only time I’ve received this response. I’ve actually talked to several business owners who gave me that EXACT answer.
And maybe this is your answer, too. Defining your target market is the foundation for all your marketing efforts. Maybe you’re afraid you won’t make money because you’re excluding so many people from your marketing efforts. Or perhaps you’re worried you’ll target the wrong people.
A target market simply allows you to focus your marketing efforts on a specific group of people who are the most likely to buy from you. You’ll get a greater return on your investment by defining your target market.
Once you’ve figured out WHO you’re marketing to, you can figure out HOW and WHERE to market your business. Here’s a few steps to help you define your target market (plus a free download at the end).
1. Analyze your current customers
Who’s already buying your products? What kind of people are booking your services?
Compile a list of your past customers and look for similarities. Once you understand your current customers you can target similar people.
Make note of clients you did not enjoy working with. Note their similarities and find some common denominators if possible. Usually this has more to do with an individuals personality, but sometimes there’s a common characteristic that just doesn’t work well with what you have to offer.
2. Determine the demographics and psychographics
I know these words are super market-y and nerdy, but just hang on.
According to an article published by Hubspot, “Demographics explain “who” your buyer is, while psychographics explain “why” they buy.”
Demographics are the quantifiable stats of your target market like age, gender, and occupation.
Age: You don’t need to get super specific with this (32 vs 35). Just determine the decade or generation.
Location: If you offer a local service only, then put your city/state. But for those of us who have online services, make note of time zones. Knowing the most popular time zones of your clients will help you determine post times for social media content or ads.
Income level: Knowing their income level helps you learn what areas they live in, types of life style choices they make and can help you determine your price point.
Occupation: What kind of careers does your audience have? Determine when they work: day shift or night shift? What kinds of work do they do? Knowing these factors will help you know how and when to advertise to your audience. Tip: knowing this will help you tremendously with your branding style.
Psychographics are the more personal characteristics of your customer.
Interests: what do your customers enjoy doing? What are their hobbies? Are they book readers or Netflix bing watchers? Do they love thrifting so they can find the best deal? What other businesses do they shop at?
Life Stage: What stage of life is your customer in? Are they young parents, single, married with a fur baby? Or are they retired and ready to travel? Knowing their stage of life can greatly impact your price point and how you can reach them effectively.
Principles & Beliefs: This part can be tricky, but try finding out what your customer believes or supports. Do they attend a church? Are they vegan? Do they support a cause.
Tip: Don’t be afraid to polarize. Stand up for what you believe in. You’ll repel some people but those who agree with you will become raving fans.
Enneagram number: If you have a couple of enneagram numbers in mind, that could REALLY help you understand your customers. What the heck is the Enneagram?
3. Check out your competition
Analyze your competitions’ marketing strategies. Who are they marketing to?
Look at their website and social media content.
It’s possible they’re missing a niche that you could be targeting.
4. Analyze your products and services
So you’ve looked at your current customer list and figured out who they are, but what if there’s another niche you’re missing?
Make a list of all your products or services. Next to each item, note any benefits it provides and the benefits of those benefits.
For example, my friend Becca is a graphic designer who creates brand designs for creative businesses. One benefit of custom branding is a professional company image. A professional image will attract more ideal customers because the company looks trustworthy and professional. The ultimate benefit of hiring a professional brand designer is to attract more customers and make more money.
Once you’ve listed all the benefits, create a list of people who have a need that your benefit can fill. This exercise may unlock an untapped niche in your field.
5. Sleep on it
Hey, there’s no rush! Don’t feel like you have to figure this all out RIGHT NOW.
Take a couple days to work on this. You’ll probably adjust your target audience a few times before you truly have it nailed down.
Be fluid. My target audience has changed a few times over the last few years. As you develop and refine your offerings and services, you’ll need to adjust your target audience as well.