The more information you know about your target audience, the better your marketing campaigns will be. By defining your ideal customer, you can easily tap into their preferences and dislikes, which you can use to your advantage. This means you’ll know what types of marketing communications they like, the marketing messages they respond to, their spending power and so on.
With the increased popularity of shopping online, customers have become more empowered – meaning they can easily shop with a competitor or look for a better deal by simply clicking a few buttons. They also like to hear reviews and testimonials from other shoppers, therefore review websites and forums are extremely popular for people to share their experiences.
Of course, as customers are more empowered that means there’s more information out there for marketers and business owners to use for their marketing campaigns.
For marketers to have an ideal profile of their preferred customer can be a huge advantage, after all if you know their likes and dislikes, how they consume media, their location, their age group, spending power and so on, you can easily target them more precisely with relevant products.
You should typically profile your customers in four different areas, these are:
Let’s look at these in further detail:
Demographic – This simply means who your customers are, it will take into account things such as their age, their gender, martial status, income level, education level, ethnicity and household size.
Geographic – This describes where your customers are, such as a certain city, county, country and so on.
Behavioural – This describes how your customers like to purchase products, including when, why and how. Behavioural will also include how much they like to spend, how often they purchase, the times they buy and so on.
Psychographic – This simply relates to your customers lifestyle choices, including their general opinions, attitudes and beliefs which may influence their buying habits.
Typically to find out who your preferred customer is, you’ll need to conduct your own market research. Many businesses simply conduct a survey or questionnaire to get a clearer picture of their target audience. Some companies take it a step further and conduct their own focus groups to more detailed information.
Of course, you can also use secondary research such as reviewing information and data from third-parties or industrial trends – this can be analysis from an industry association for example.
Generally whatever research you want to use, the basic goal is to find out:
- How they buy your products or services
- How to reach them
- What call of action methods get their attention
It’s important to remember that your target audiences’ habits and preferences can take over time, this can be because of many reasons – from wider market trends which naturally change or even factors such as a downturn in the economy.
The best marketers are making sure their customer research is part of an ongoing effect, so they can gather as much data as possible.