You can’t afford to target everyone, and even if you could, it would be a bad idea.
After investing time, energy, and money in your business, it’s only natural that you want to shout about its products or services from the rooftops. I get it, but you have to face the reality that telling anyone and everyone about your offerings isn’t a strategy. In fact, it’s a sure-fire way to blow a lot of money in a short space of time and see very little in return.
Finding the ideal target audience is the key to optimising your conversions, making the most of your marketing strategy and your budget.
Source: Smarter HQ
The most common data points that are used to define the target audience of a company are:
- Age
- Gender
- Education background
- Purchasing power
- Social class
- Location
- Consumption habits
It’s important to note here that the term ‘target audience’ is often used interchangeably with another marketing term, ‘target market’. There are, however, subtle differences between the two that you must be aware of.
The target market for a product is the people most likely to use the product, whereas the target audience for a product is the people most likely to purchase that product.
For example, the target market for a children’s bookshop is 2–11-year-olds, and the target audience for the same bookshop is parents, grandparents, aunts and uncles, etc.
Marketers use demographic data, such as age, gender, income, etc., and psychographic data, such as likes, dislikes, opinions, values, etc., to define their target audience.
Why identify a target audience?
- Build Stronger Connections
Modern consumers are connection-driven; they want brands to appeal to them as people with lives, dreams, and emotions of their own. By identifying your ideal target audience, you’re embarking on a research project to find out what appeals to these people. The more you find out about your target audience, the stronger connection you can build with consumers.
- Enable Market Segmentation
When you identify your target audience, you are thinking about a segment of the total market. Although based upon data and research, this audience is still quite generalised. There is the potential to further segment consumers based on shared characteristics and interests within the target audience. Market segmentation allows you to tailor your messaging to each audience segment, personalising your customer’s experience even more.
- Optimise Budgets Efficiently
The U.S. Small Business Administration suggests that 7% to 8% of your gross revenue should be spent on marketing. That’s not a lot when you consider that brands today are expected to deliver end-to-end omnichannel marketing experiences. Targeting your spending towards hyper-specific areas of the market increases your chances of conversion by efficiently spending your money where it matters most.
Now that you know why you need to identify a target audience, read the full post and discover how you can achieve this:
5 Top Tips to Identify Your Ideal Target Audience
Unlock the full potential of your consumer data and optimise your segmentation strategy with your very own FREE guide: The ABCs of Market Segmentation 💌 Don’t hesitate to get in touch with me directly via dominique@hurree.cowith any of your questions or comments you may have!
Originally published at https://blog.hurree.co.
