Understanding your customer is one of the most important things every business should be able to do. However, it is particularly important for small business.
By having a clear definition of the exact type of customer you are trying to reach can make the most of your limited marketing dollars and have the biggest impact on your bottom line. This means you need to know your “target market”.
Narrowing the type of customers you would most like to reach (and the kind that are most likely to be willing, eager and able to buy from you) is a key building block to success. Defining your target market gives focus to all your marketing and sales activities helps you craft your advertising messages and images, choose where and when to advertise, influences which distribution channels you use and perhaps even helps you decide the colour of your employees uniforms or the music playing in your store.
Knowing your target market can also help to differentiate your business from competition and tailor your marketing efforts to better meet customer needs and potentially boost sales. Having a broad target market that tries to appeal to everybody can easily get lost in the crowd.
Next week, we will look at the factors to consider when defining your target market and how to apply them to get to your ideal customer.