Building a business presents many different challenges, but there’s no challenge greater than not only identifying your target market but also executing a strategy to help reach them. To be successful and profitable, you need to know and understand your target customers. The following information will help you better understand your target customer and will give you tips to expand your target customer base and ultimately increase your revenue.
To know your target customer accurately, you need to have a clear picture in your mind of what your target customer looks like from a physical standpoint. Include things such as age, gender, education level, marital status, and more. Your target customer is a customer that shares your passion and want what you offer rather than just needing it. Your target customer will frequently buy from you, tell friends and family about your business, post their praise for your business on social media and so much more. Your target customer will become your biggest fan and spokesperson for your business.
When considering your target market, it’s important to keep in mind the 80/20 rule. The 80/20 rule states that approximately 20% of your customers account for 80% of your sales. That 20 % are your target market. If you could somehow find a way to increase your 20% to 40%, your revenues would double. If you could attract 100% of your target customers, then your revenue would increase by 16. The more target customers you have, the less work you need to do for your money which is what makes it possible to make more money while working less.
So how do you attract these customers? Like previously mentioned, it’s important to make sure you know the physical description of your target customer. Once you have that in place, identify what the customers want and tailor your company towards what they value most. By doing this, your profits and revenues will continue to increase. You just need to find out why the 20% are buying from you and then start attracting more people that way.
Lastly, you need to know who your business is selling to. Whether it be individuals, firms or another outlet, you need to figure out the precise makeup of the group your company sells to. Once you determine that, you can make up a physical profile that outlines the details of who your business is selling to which can then be used to help craft the right marketing message to attract the target market you are aiming for.
Attempting to identify your perfect target market can be difficult because there’s a lot of different information that you need to identify your market accurately. In a perfect world, your business would be made up of 100% target customers that would result in an explosion of sales and record profits. While obtaining a 100% target customer rate is nearly impossible, knowing the proper way to identify your target market can ultimately help build your business and increase your profits.
Written by Robert Ritch