Having a clear understanding of your typical customer is one of the fundamental aspects of any marketing strategy. By singling out a certain group of people, you build a solid foundation for your business, because it is simply impossible to please everyone. As the saying goes, if you try to sell to everyone, you will end up selling to no one.
Defining your target audience is essential for boosting sales, leading successful marketing campaigns, and winning customers’ loyalty. That is why it is extremely important to know “who is your audience?”. In this article, we will discuss what a target audience is, why it is important to define it, and how to do it accurately.
What is a target audience?
A target audience is a segment of potential customers that your brand appeals to, a group of people that your products and services meet an unmet need for. Simply put, a target audience is a group of people who are most likely to have an interest in your offers and make purchases. Typically, the target audience is dictated by such demographic factors as gender, age, income, location, profession, etc.
What are the benefits of defining your target audience?
Defining a target audience helps entrepreneurs advertise more efficiently. People find personalized ads to be more appealing and engaging. If your offers match the needs of a particular group of people and you know how to reach them, you are more likely to gain a loyal customer. The McKinsey & Company research shows that personalization increases the return on investment up to 8 times and lifts sales by 10%. Moreover, understanding your target audience is key to effective communication and building trustful relationships with your customers. Thus, the ultimate goal of defining your target audience is establishing the relevancy of your brand to resonate with potential and current customers on a deeper level.
How to find your target audience?
#1 Identify the key benefits of your products or services
What problem does your business solve? What needs do you meet? What value do you offer? Once you find answers to these questions and narrow down your unique position on the market, you can start figuring out whose desires you fulfil, i.e identifying your target audience.
#2 Refine your target audience
Think about who is most likely to purchase your products and determine the market segment you plan to target. Consider the demographic factors and identify the psychographics (interests, values, lifestyle, attitudes, and so on) of the people who benefit the most from your offers. Now you have clearly defined your buyer persona.
#3 Research the competition
Your competitors probably target the same demographics and psychographics. Checking out their website and using social listening tools, you may find the niche market they are overlooking. Filling the gaps your direct competition has missed in their marketing campaigns is a great way of setting your business apart from the crowd and boosting sales.
#4 Test and evaluate the results
As you gather more data and actively interact with customers, you get an increasingly accurate understanding of your target audience. Make sure it is worth serving. Create real-life tests so you can actually engage with your target audience. Constantly optimize your buyer personas to achieve better marketing results.
Targeting the right audience helps your business launch effective marketing campaigns and build cost-efficient marketing strategies. If you create personalized content, you are more likely to develop a strong relationship with your customer base. It also increases return on investment and, as a result, encourages your business to grow sustainably.