Who is your target market? The first time someone asked me this question, I got a right hump. I replied defensively “I am a new business owner, who just wants to sell to anyone who is interested in what I have to offer.” Wrong answer! That, according to my coach was an act of a desperate business owner.
Here’s the thing, most ideas have high growth potential, but it has to be at the right place, targeting the right prospect and at the right time. I have spent time lovingly designing great packages and made zero sales, and I have also spent a little time developing services off the cuff which people have taken to so well.
If your product is speaking to the wrong audience, you will struggle to make sales. Knowing who to sell to is a crucial aspect of business growth, packaging your passion, or idea development.
So how do you determine your target market? Here are some tips to help you on your way.
What problem do you solve?
You should clearly define how you help people that come your way. It will help you build a picture of the type of people you want to benefit from what you offer.
Who do You Wish to Serve?
Create an avatar of the customer you will like to serve. Is it a woman, man, professional, married, tech lover, sports fan? All these questions will help you streamline the people you should design your product/service for. It will also help you understand them much better.
What Do They Need?
The needs of the people you love to serve may vary. For example, if you want to start a swim school, you may have advanced, intermediate, beginners and nervous swimmers. If your service is designed for just one of these groups in mind, you have alienated a large part of your potential customers – which is not bad if there are enough people in that group. How do you group the people you help? Researching the demographic of your market is vital.
Who Do You Attract?
When I started BFS, I was reluctant to focus on a particular target market. I was casting my net so wide and catching fish I could not serve. I took a step back and analyzed the people I attracted and discovered that 95% of my clients are women over 40. Who do you feel at ease with the most – teenagers, men, parents, over sixties, women, students, bankers? Finding your fit will help you create the right products for the right people.
Find the Right Niche
Targeting the right audience is a primary aspect of your business development and so is ensuring you have a great niche. A Niche is a distinct segment of the market. You can have a broad or a narrow niche e.g. swim school for nervous swimmers, swim class for beginners or swim school for all levels. The niche will depend on the size of the broad market, and this requires research to discover the distribution.
In the technology age that we live in, it is better to be a big fish in a small pond rather than vice versa. Some businesses have mastered the niche craft to the finest detail and comfortably serve their markets faithfully. Think of the most specific service anyone could want e.g. grooming for small dogs, I am sure you will find someone that fits the bill.
What Makes You Unique?
I always ask my new and existing Navigator clients this question intermittently. What makes you stand out is what will make you money. Find your unique selling point and always put this forward when you define your target market. Your uniqueness will be appreciated by the right people when you take into consideration the tips listed above.
These tips are not exhaustive, they are some of the ideas you should consider if you want to increase your business reach and ensure your idea/product/service sees the light of day. Businesses fail for many reasons, and one of them is because they fail to match the product to the right target market.
If you can master your target market by carrying out market research on your prospects, studying them and understanding their needs, you will soar beyond your competitors.
Need help you clearly define yours – a brainstorming session will help you find the answers to ensure serve your defined market confidently.
I wish you success in all your business endeavours.
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