Tips on Choosing Your Target Customer

Posted by Lasoi Mukuru on Apr 7, 2011 in Business | View Comments

For businesses, targeting the right prospects can mean the difference between success and failure. This is especially true for start-ups and small businesses looking to turn a profit. Just as clothing items clearly state a particular size on the label, every product or service has a specific demographic group that will be most interested in it. That group of people comprises your target market. You therefore must conduct some market research to determine your sales demographics and establish a target audience.

Here are a few tips to guide you…

Don’t assume

Too often, small-business owners assume they know what their customers want before they do their homework. Be sure to research all areas of demographics of people who may be your potential customers. Their age, sex, family status, ethnicity, occupation, socioeconomic background, geographic location…any relevant thing you can think of. Consider all those who would tend to want or need your product or service.

Organize your data

Record and group as much information as you can until you feel satisfied with the level of research you have accomplished. You must then review it and try to group the certain people into groups hence forming your target market. You’ll probably come up with more than one group but this will give you a basic outline as to what your marketing plan will need to consist of to reach these groups.

Study your competition

Since your future customers are currently buying from someone else, use your competitors as a research tool. Study your competitors’ marketing strategies and how they use them to generate revenue for their business. If you pay close attention, you’ll gain a general idea as to who they are trying to reach giving you an indication of whom you should be trying to reach as well.

Find the perfect match

Figure out what kind of customers are the most strategic to help you reach your goals. Do you need a lot of people who buy a lot, or people who buy across an entire service line? Is your ideal customer a business or an individual? Are they rich or middle-income? Are there any geographical barriers? Identify as many traits as possible so you can narrow down your niche.

Make Use of freebies

The internet is full of free resources that can help you identify your market. Join forums and discussions that would interest potential clients to find out what and how they think. Write and submit articles to prove your expertise. You may also consider purchasing some secondary research information to get background information on industry size and competitor market share.

Ensure your market can sustain you

Make sure the target market identified is big enough to support your business. If it’s too shallow, then it’s just a matter of time before you have to close shop.

More than ever, today’s consumers don’t like to be grouped with everyone else. They like to feel special–so be sure you understand your target market. It will make your strategies for designing, pricing, distributing, promoting, positioning and improving your product, service or idea easier and more effective.

While all this may take a little extra effort, entrepreneurs who aim at a small target are far more likely to make a hit.

Please share any other tips you have on choosing the right target customers in the comments section below.

Lasoi Mukuru is the Editor-in-Chief of Rinforsideweb blog. Armed with an MBA, she enjoys working with early startups and helping small business owners take their business to the next level using practical strategies. She can be found on Twitter at @lasoimukuru

Tips on Choosing Your Target Customer

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