How to Easily Find Your Jackpot Target Market

Do you know your target customer?  I mean, really know who that ideal client is?

If you answered no, then we have some work to do.  But even if you answered yes, keep reading.

Ask yourself this question: who did I create this product (or service) for specifically?  This is who you originally defined as your target market, whether you knew it or not.

Now, ask yourself this:  who actually purchases this product?

Ooooh, that answer might be different.  Perhaps you actually don’t know.  Perhaps you never thought about these two questions as having different answers.  Do you know who purchases your product?

If you don’t know who purchases your product, you don’t know who your ideal client is.  It’s time to do some market research!

How do you find your target market, you ask?

Before you ever think about Managing Small Business Finances, Follow the steps below to learn how to define a target market.

#1 Who was this product designed for?

As I mentioned before, the first place you will start to look for your ideal client is who you designed this product/service for.  Why did you start your business?

When you start a business, you have a person in mind who could benefit from your products or services.  There is some unfulfilled need in the market that you decided to fill.  That is your first step of how to find your target market.

#2 Who is actually buying?

Identifying who you think is your target market is great, but actually analyzing who is purchasing from you is a different story.  Think about who is purchasing your product.  

Where do they find you?  Why do they buy from you? How old are they and where do they live?  What are their income levels?  

Determining these key characteristics of your actual buyers is critical in finding your ideal client. If these customers are buying from you, it’s likely others like them will buy as well.

#3  Who are your competitors targeting?

Take a look at the audience your competitors are targeting.  Are they similar to yours?  Different?  Why are they targeting a different market than you are?  

I’m not saying your competition is right by any means.  But, it is important to look at who they are targeting and understand the differences in your approach.

Maybe you have a more updated product and are targeting younger generations.  That’s a valid reason to have different strategies.  

You can also identify specific niches that your competitors are not currently reaching.  Opportunity for you?  I’d say yes!

Keep a close eye on what your competitors are doing in the market.  The competitive environment of a business is always changing and transforming, so you have to keep up with that if you don’t want to get swallowed up!

Defining Your Ideal Client Profile

Okay, so now you know some characteristics of your ideal client.  Now, and I mean actually now, I want you to write those down.  Be specific.  Here are some things to list in your ideal client profile:

  • General Characteristic:  Who needs this product?

  • Age:  What age range is most likely to purchase?

  • Gender: What gender is most likely to purchase?

  • Profession:  What do your customers do for a living?

  • Income Level: What income level are your customers?

    • Be careful on this one and don’t define too broadly of “over $50k/year” if a millionaire wouldn’t benefit from your product.

  • Location: You can be specific or general here.  Country, state, city, region, etc.

  • Interests:  What kinds of things do your customers love?  What are they seeking out?

  • Personality: What traits do your customers have in common?

  • Purchasing Behaviors: What items are complementary to your product that your customers would also be purchasing?

Once you have written those characteristics down, put them somewhere in your office that you can refer to often.  This person is now your most valuable client.

Marketing to your ideal client

Now that you have defined very specifically who your ideal client is, your marketing tactics should revolve around that person.  When you create ads for your business, think about what this ideal customer would want to see.

Example: your target market is millennials who work from home.  You probably wouldn’t advertise on a billboard.  You’d likely use Facebook ads.  And your tone is much less formal targeting millennials over Baby Boomers.

This is why having a defined target market is so important to your business.  You are focusing so much attention (and money) on gaining customers, make sure you are targeting the right customers.

Most businesses try to target too broad of an audience.  They think “well everyone could use my product!”  But let’s be honest, there is no product out there that everyone actually buys.  

If you try to reach everyone, you will fail to reach those who actually are your target customer.  

That’s not to say that targeting a specific demographic is excluding customers from your customer base.  It’s not!  If a customer wants to buy from you and they are not your target market, that’s okay.  They can still purchase!

What you are doing is targeting your marketing on a specific audience who is most likely to purchase.  If you’re marketing too broadly, you’re spending precious dollars on a lot of people who aren’t your target market.

Now that you have your ideal client profile complete, you can make even better decisions on how to market to your target audience.

 

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Stephanie Yarbrough

Stephanie Yarbrough

Business Strategist

Hi! I’m Stephanie, small business strategist, business planning superhero, and owner of Portage Consulting.  I live for hiking and snow skiing ...oh, and helping small business and startups develop growth strategies and achieve financial success.

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Stephanie Yarbrough

Stephanie Yarbrough

Business Strategist

Hi! I’m Stephanie, small business strategist, business planning superhero, and owner of Portage Consulting.  I live for hiking and snow skiing ...oh, and helping small business and startups develop growth strategies and achieve financial success.

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