The broader your target audience is, the more difficult competing with other established businesses will be. Learn how to narrow down your target market and set a business strategy to attract devoted customers.
Create a value proposition.
A value proposition is essential for a budding business because it helps you identify your target market. The value proposition has three components: the problem to which you’re offering a solution, the target buyer, and the reason your business is the right one for your customers.
A developed value proposition differentiates you from competitors and attracts prospective leads to your business. The first component is defining your customers’ problem and demonstrating how your product or service tackles that problem. This is the very core of your business, so be transparent with your consumers.
After that, consider who the solution is for. You can get as specific as your product requires: consider the age, sex, occupation, and location of your demographic. All these aspects affect customers’ decision-making processes and their sympathy towards your business’s mission. Finally, differentiate yourself from your competition by demonstrating your experience in the field, competitive prices, or outstanding customer service.
Polish your business plan.
Extensive research must support your business plan. Everything you do from this point on should be geared toward your target audience, so make sure to set up customer surveys. The more direct contact you generate with your customers (through focus groups, for example), the more refined your business plan will be. Important factors affecting your target audience include:
- Age
- Occupation
- Marital Status
- Lifestyle
- Language and culture
- Motivation
- Income
- Education
- Size of target market
Consider projection factors in your market analysis. Ask questions about the long-term viability of your market and possible economic shifts down the line so that you’re prepared for any unexpected developments. Questions to ask include:
- What proportion of your market uses similar products?
- Will your audience purchase your product again?
- How many repeat customers might you have?
- How might socioeconomic shifts affect your customers?
- Do the current market trends favor your business? Will these trends continue?
Keep customers happy.
Acquiring customers is just one task - keeping their loyalty demands even more hard work. Your performance doesn’t have to be impeccable - loyal customers do forgive transgressions - but this loyalty depends on your response to your customers’ concerns. Having a customer support team dedicated to alleviating customer dissatisfaction creates enormous product value and develops a trusting relationship with your customers. People will return to your business if you respect their time and behave responsibly when things go awry. A simple way to add a personal touch to your transactions is to keep business card holders in plain sight at the front of your store.
Use benefit programs and referral campaigns to incentivize your buyers to return. Encourage them to leave reviews on popular sites like Yelp or on your company Facebook page; this will make them feel that their voices are being heard. If you serve your customers to the best of your abilities, your business will reap the benefits in the end.
