As a business owner, you've probably received a thousand calls about how to spend your hard-earned dollars to "get incremental revenue" or "build that client base" or, my favorite, "build your brand." You can advertise here and sponsor there. The question back to these sales folks is "do you know who my target audience is and how to reach it?" Invariably, there will be silence after this question.
Marketing and promotion can be accomplished in one of two ways: with a fire hose or with a thoughtful, targeted approach. The fire hose reaches many people with a message to which they may, or may not, respond. The fire hose can be costly and, often, unproductive.
Targeting reaches your customers where they live and work, with a message of interest to them. You can actually spend less and get more business.
Do you know who your target audience is?
Think about your best customer, Jerry. Jerry spends lots of money with you, has very few customer service problems, and recommends you to others. You enjoy doing business with him and have probably said "If I had a thousand Jerry's, I'd be home free."
"Jerry" is your target audience. I'm recommending that you not spend one more red cent on advertising or promotion until you figure out how to reach the hundreds of Jerrys out there that are ready to do business with you. By targeting your audience, you position yourself to deliver a marketing message that is instantly appealing to your best customers and available to them precisely when they are ready to hear it.
To understand your target audience, you need to do some research. Since Jerry is such a good customer, he probably won't mind answering some questions about why he likes doing business with you. What makes you special to him? Why does he keep coming back instead of shopping around with your competition?
Different types of businesses will choose different sorts of questions. A dry cleaner may ask if both Jerry and his wife work outside the home. An insurance agent may ask about his household or business. Whatever questions you choose should be specific, relevant to your business, and pertinent to understanding your best customer.
Don't forget to ask what Jerry does, what he reads and listens to, and where he spends his money. This information will help you determine how best to reach him. Finally, is Jerry more interested in discount coupons or personal service? Such questions will guide you in crafting the message itself.
Now that you know everything about Jerry, build a list of similar questions and survey at least 20 other customers. The more, the better. Your customers will appreciate that their opinion matters to you. Be sure to survey customers that may not be as great as Jerry and, if possible, survey your competition's customers. Tabulate and analyze the results, and the characteristics of your perfect customer will begin to emerge.
So, now you know your target, where to reach them, and a bit about what kind of message they will be receptive to. The final step is to do a small test to the target market. If you discover they are most interested in price, send a coupon for a percent off their next purchase. Then, measure the response. If it's positive, you have validated your research and know where your dollars should be focused.
The process of analyzing your target customer should be repeated periodically, especially when you plan to introduce new products. And, whether you choose to do the research yourself or hire a marketing consultant to help you, as the business owner, your participation is critical to the success of the research. You are the expert in your field and your expertise will drive and inform the process.
Target marketing is more than theory. It's a practice that can deliver more value for your marketing dollar by providing a marketing message that is instantly appealing to your best customers and available to them precisely when they are ready to hear it.
