Use Target Audiences to Improve your Marketing

Looking to reduce cost, improve efficiency and generate more leads from your marketing? New businesses are opening up all around you. If you sell to consumers, this may mean competition is getting tougher. If you sell to other businesses it may be a new pool of potential customers. Make sure you are taking a strategic approach to winning new clients in this ever-changing landscape. Understanding who you are creating marketing for and how to reach that audience is key to creating successful campaigns with higher conversion rates. Learn what target markets are, how to identify yours and maximise your marketing efforts by identifying who you are trying to reach and how they best communicate with them.

What is a target market?

A target market (or target audience) relates to the segment of consumers you will focus most prospecting efforts on, because they are likely to generate the most profit for your business and benefit the most from interaction with your brand. In this article, we will look at defining your target market to maximise your marketing efforts. Target audiences are typically identified based on market research; competitor, consumer and product analysis as well as a business’ customer data if it exists; such as high spenders or frequent orderers. This research allows the business to create an avatar of their target market; demographics, psychographics, needs, priorities and preferences. This is also closely related to Ideal Customer Profiles. A target market is like a compass, used to direct your efforts towards mutually beneficial relationships

Why do I need to identify my target market?

Time. Money. People. Effort. These resources are precious. They’re valuable. Stop wasting them. If you throw enough spaghetti at the wall, some will stick, but that’s no way to run your business. Targeting a group of people who are specifically aligned with your offering allows you to make product, price and promotional decisions that are more likely to lead to increased sales and customer satisfaction. Be thoughtful and intentional about where you invest resources and how you promote your business. Reduce waste and improve conversion rates by knowing the target market best suited to your business.

Implementing a target market empowers you to reduce waste:

• Less money spent on getting in front of those to whom your offering is irrelevant
• Increased conversion rates on marketing campaigns
• Improved relationships as you connect on an individual basis with new and existing customers who share your goals, values and beliefs
• Faster campaign creation process, as you can more easily identify the needs and priorities of those your campaign will be targeting, aligning your efforts appropriately

Create my ideal customer profile

Review your current, lost and dormant customer database. List your top 3 most profitable clients. Do you run a business-to-business or business-to-consumer organisation? Depending on your answer, answer the prompt questions below:

Why do you most enjoy working with them? What shared values exist between you and the contact / organisation?

If I target certain groups, will I be missing out on potential clients?

We’re not telling you to black list those outside the realms of your target audience or to refuse to work with customers who are not-so-ideal. This framework is to see that your time, money and efforts are best placed in areas of most probable success. There will be exceptions to the rule.

A blended marketing approach is a great way to ensure success and the extent to which you can target your marketing will depend on the nature of your campaign. It’s more difficult to target your audience specifically with some campaigns than others. Traditional marketing such as mass marketing, door drops and flyering are a great way to extend your reach but give little control in terms of specifying the demographics of your audience. Use digital marketing such as pay-per-click advertising and social media ad campaigns that can be highly targeted. The data available in online marketing offers the opportunity to segment your target audience by age, gender, occupation, interest and more.

How do I use my target audience?

Use this avatar of your Ideal Customer to achieve marketing that is intentional. Create advertising that speaks to the needs of those most likely to order from you. Connect with your prospective clients on a personal level with a targeted understanding of their priorities and preferences.

Price

Factor your target market’s preferences, current suppliers and budgets into your pricing strategy to achieve something that aligns with their circumstances

Product

Make adjustments to your offering to improve the value your ideal client perceives from your product. You can use this information to add improvements and functionality or to remove aspects that add cost to your product but don’t offer value to your target market.

Place

Are you paying a pretty penny to showcase your product at a local farmers market but have just uncovered that your ideal client is making the majority of their purchases online? Find out where your target audience is and get in front of them. This goes for stockists too – prioritise where your products are sold by where your most profitable customers are browsing.

Promotion

Your brand is your business’ personality. Ensure yours speaks to your target audience; from colour schemes to tone of voice to values. Think about the preferences, struggles and needs of your target audience when making decisions around your brand, marketing and promotional efforts. As we’ve said, this saves time, money and effort. Ever get a sponsored ad that is so irrelevant it irks you? Avoid annoying audiences by ensuring your marketing is targeted towards people who have an interest in what you offer. Cater your case studies and testimonials to your target market too – which projects have you done that would speak to your ideal customers? Showcase these on your website and printed marketing to help connect with target customers.

I have my target audience, now what?

Now you know why you need to target your marketing efforts, how to profile your most profitable avatars and how to implement that information to improve your business. Use our free resources like our Guide to Creating Successful Marketing Campaigns to generate your target leads.