What factors did you consider before deciding on your customer base? The answer to this question could be the difference between your company’s success and its failure.
Every company is unique and complex in its own way, but there are many parallels across industries. When I meet with a new business owner, I always request that they give me their best “elevator pitch” and walk me through their company avatar so that I can get a sense of their brand.
Clients will tell me about their product or service, as well as the demographics of their customer base. Of course, it varies, but most business owners at least have a broad idea of who their clientele is. Maybe it’s mostly men in their 40s and 60s, upper-middle-class with a passion for golf. Perhaps it’s students between the ages of 18 and 25 who are looking for assistance with their college studies. It could be anything at all.
I then ask some follow-up questions based on their industry and responses. What criteria did you use to select your target market? Is this a gut feeling or was it based on market research? Are you, the business owner, part of the target demographic and making decisions based on your own biases and feelings?
If you responded yes to the last question, you may not have as much knowledge of your consumer base as you believe.
Many enterprises, after all, are founded out of necessity. An entrepreneur recognized a need for a product or service, frequently in their own daily life, and developed it. Because they were interested in the goods, they naturally assumed that others who shared their characteristics would be interested in it as well. They then create a marketing campaign based on what would appeal to them as a business owner (and, by implication, their “target” audience) and implement it, with varying degrees of success.
When it comes to scaling, many entrepreneurs believe that finding new clients is an impossibility. They are extremely well-liked in their target market, but how can they grow their firm by 10X, 20X, or 30X? They do it by leveraging other specialties and audiences. They also keep an eye on what their competitors are up to.
So, whether you’re a startup or an established company, there are a few factors to keep in mind while evaluating your target market.
Who is going to buy my product?
Is it really men in their 40s and 60s who make the purchases, or is it their wives? Is your target market primarily college students, or do you also sell to their parents? How did you figure that out? How did you figure that out? To help you answer this question correctly, look at sales statistics.
Who am I trying to reach with my message?
Are you excluding other target markets from your marketing and content? Is your view of your audience true, or do you have prejudices that allow your message to resonate solely with individuals in your perceived target?
Who is it that my competition is aimed at?
Is there a clientele that looks different from yours? Examine their messaging, creative material, and website to determine what you may change to expand your customer base.
How can I put this to the test?
Let’s imagine you do some research and discover that your target audience of golf-loving males in their 40s and 50s is actually ladies in their 40s and 50s buying gifts for their wives. How can you put new messages to the test in order to target that audience? Would a split test help you learn more about your target market? Could you run advertising to that demographic and see what kind of response you get?
The more you learn about your clients and examine your marketing plan critically, the more successful you will be in the long term.
