How to Find Your Ideal Customer Demographics: A Step-By-Step Guide
As a business owner, you’re going to experience a lot of challenges, especially when you’re first trying to get your company off the ground. One of the most common challenges that you’ll likely run into, though, is the challenge of marketing your product or service to the appropriate audience.
Many businesses struggle when it comes to promoting themselves, and they struggle because they don’t know who they’re trying to reach or how to create an ideal market ad.
If you’re not sure who your target customer is, keep reading. Listed below are some tips that will help you identify your key customer demographics and improve your marketing approach.
Why Do Customer Demographics Matter?
In addition to understanding key terms like the difference between customer service vs customer experience, it’s essential that you understand your target demographics as a business owner. The following are some of the most important reasons why this matters to the success of your company:
Appeal to Buying Habits
When you have a clear idea of the people who make up your target customer demographic, it becomes easier for you to appeal to specific buying habits.
Remember, people of different groups have different habits and behaviors when it comes to the way they shop. A Baby Boomer will be less likely to shop online than a Millennial, for example.
Appeal to Emotions and Priorities
It’s easier for you to appeal to people’s emotions and priorities when you’re clear on your customer demographics, too.
You can gain a better understanding of what they value and what kinds of features or key terms matter to them. A Millennial might be more likely to be swayed by a product that’s marketed as “sustainable” or “eco-friendly,” for example.
If you take the time to learn about your customer demographics now, you’ll avoid wasting money on marketing approaches that are ineffective.
This is especially important if you’re a business owner and are working with a limited budget. You can’t afford to spend your hard-earned money on strategies that don’t work or don’t appeal to the people who are most likely to buy your products or services.
How to Understand Your Customer Demographics
Now that you know why you need to analyze your target market and gain an understanding of your customers, the next step is to actually carry out that analysis.
It’s not enough to just define “analyze” — you need to know who’s buying products and who’s most interested in what you’re selling. Here are some tips that will help you learn more about your customer demographics:
Evaluate Existing Customers
When it comes to understanding customer demographics, it helps to do some research and learn about the people who are currently buying your products. Check out your website and social media analytics to answer questions about your existing customers.
For example, how old are they? Where are they located? What language do they speak? What is their average income level?
Look for patterns as you answer these questions and it’ll be much easier for you to nail down your target audience.
Check Out the Competition
It also helps to research your competition. Look at businesses that are selling products or services similar to yours and think about who they seem to be appealing to with their advertisements and other marketing materials.
The goal here isn’t necessarily to try and steal customers from their target demographic. Instead, consider whether they’re overlooking an important niche that you can appeal to with your own marketing efforts.
Analyze Your Products or Services
Take a close look at the specific products or services you’re selling and write down a list of features for each of them. Then, next to these features, make another list of the benefits it provides (and the subsequent benefits that come from that original benefit).
Let’s say you’re a website designer and you offer professional-grade website design services. The benefit here is that your clients get to look more professional online. The benefit of this is that they can attract more customers and, as a result, earn more money.
After you’ve nailed down all the benefits you’re providing with your product or service, make a list of the people who need those benefits the most.
The more specific you can get when thinking about the people who need your products or services, the better. Remember, “everyone” is not a customer demographic.
How old is your target customer? What is their gender? What are their priorities and pain points?
Don’t Forget About Psychographics
When it comes to digging deeper into your target customer, it helps to think about psychographics, too.
Psychographics are more personal characteristics of a customer. They include things like personality, values, and lifestyle.
Understanding these will make it even easier for you to narrow down your key audience demographics.
Test and Assess
You’ll never know if a particular marketing strategy is effective unless you try it out. After you’ve done your research and figured out your customer demographics, you need to run some tests.
Put up some social media ads and use A/B testing to see which approaches are the most effective. Social media advertising is relatively affordable, so you can avoid wasting a lot of money on something that doesn’t work. However, it’ll still give you valuable feedback so you can assess your approach and make adjustments.
Revisit as Needed
Be sure to revisit your customer demographics on a regular basis, too. You might find that, over time, you start to attract the attention of new people you hadn’t thought of at first.
Regular revisits help you fine-tune your strategy so you don’t overlook these new audiences and accidentally alienate potential customers.
Identify Your Audience Demographics Today
Now that you know more about your ideal customer demographics and have clear demographics examples to work with, it’s time to start improving your marketing strategy.
Keep this information in mind during your next marketing meeting. It’ll help you improve your approach and ensure you’re conducting an effective target market analysis that allows you to promote your business to the people who are most interested in working with you.
Need more marketing and business advice? Don’t forget to check out the other business-related articles on our site today.
Information contained on this page is provided by an independent third-party content provider. Frankly and this Site make no warranties or representations in connection therewith. If you are affiliated with this page and would like it removed please contact [email protected]