Marketing Insights | Talk To Everyone And You’ll Sell To No One: How To Find And Target The Right Customers
Marketing Insights | With the current state of the world economy, having a well-defined target market is more important than ever before. No one can afford to target everyone. The better you understand your ideal client, the faster your small business will grow. But new businesses often struggle with defining their target market and set their sights too broadly.
Small businesses can easily and effectively compete with large companies simply by targeting a niche market. However, small business owners often overestimate the market size, and in many cases there may not be one at all. Here are five questions that can help you determine whether you have a target market and what it is.
Who would pay for my product or service? | Marketing Insights
First of all, try to understand the problem that your product or service can solve, then use that information to help determine who would be willing to pay for a solution. Who are your current clients, and why do they buy from you? Look for common characteristics and interests. Which ones bring in the most business? It is very likely that other people like them could also benefit from your product or service.
What does my ideal client look like? | Marketing Insights
After performing research, you’ll want to create a client profile. This is more than a brief statement; it is an in-depth description of who your typical client may be, and it includes demographic and psychological profile. Demographic profiles alone are limited in their potential to uncover motivations and buying patterns, but they’re a great launch point for any discussion, especially when combined with additional information. Demographic information may include age, gender, location, ethnic background, marital status, or income, while psychological profile goes beyond the “external” and identifies more about your ideal customer’s psychology, interests, hobbies, values, attitudes behaviors, lifestyle, and more.
Where do they get their info? | Marketing Insights
It’s not enough to just say who your target audience is. If you’re selling from a storefront, you need to know how many people in your target market live nearby. If you’re selling from a website, you need to learn about your potential clients’ online habits. Find out which websites they frequent and which social networks they most often check. Choosing the channels that you use to deploy your messaging is absolutely vital. For example, do your ideal clients read blogs? Do they subscribe to email newsletters? Do they religiously download podcasts to listen to while they work out?
The information you put together for your client profile, combined with knowing where your target audience hangs out online or how they use technology, will facilitate the delivery of your message.
How important is pricing? | Marketing Insights
When it comes to maximizing your total revenue, the right price is one of the key factors. Generally, higher prices mean lower volume and vice-versa; however, small businesses can often command higher prices because of their personalized service. Not all customers are looking for a cheap price, after all. Many are willing to pay a higher price to get a premium product or service. You can boost your average sale and your total revenue by offering a more comprehensive product or service.
Should I give things away for free? | Marketing Insights
Starting a rewards program or providing a discount coupon that rewards people doing business with you can help you grow your customer base. When done right, this also boosts awareness of your brand and encourages people to keep checking in for future offers. You can also set up joint promotions with other small business owners. Contact some non-competing small businesses serving clients in your market. Offer to advertise their products or services to your clients in exchange for their publicizing your services to their clients in return. Cross-promotion usually produces a large number of sales for a very low cost.
Don’t be shy about asking for client referrals. The majority of people say they are more than willing to provide a referral if asked, but very few take the initiative to do it on their own. Your clients already know and trust you. It’s easier to get more business from them than to get any business from somebody who never bought from you. Take advantage of this by creating some special deals for every referral.