What is the target customer? The most effective ways to identify
What is target customer? Are you looking for target customers for your business? Want to know how to identify and find potential customers to increase sales and profits? Through the article below, CleverAds will provide you with some useful information about target customers and the most effective ways to identify them.
1. What is the target customer?
Target customers are the group of people that businesses want to reach and sell to. These are the people your product or service can solve their problems or needs.
Example of your target customer
A business providing financial advisory services can select target customers such as people who are looking to manage and invest their assets, people who want to minimize investment risks or those who have loan demand.
2. Why do businesses need to identify target customers?
Identifying target customers plays a pivotal role, is extremely important for businesses because it helps direct and focus sales efforts on high-potential customers.
Increase conversion rate
When businesses have a clear understanding of the characteristics and needs of their target customers, they can focus on developing products/services to meet customer needs.
From there, customers find that the product/service is suitable for their needs, and the conversion rate from potential customers to actual customers will also increase.
Reduce the cost of reaching the wrong customers
Businesses need to know clearly who their target customers are, in order to focus on reaching and promoting products/services to customers who have a higher purchasing power.
This will reduce the cost of reaching the wrong customers, in order to optimize resources and ensure the effectiveness of the marketing campaign.
Limit spam on objects that are not target customers, adversely affecting business reputation.
Brand reputation is an aspect that is always a top priority for businesses.
If businesses reach people who are not their target customers, they may send inappropriate or annoying information to people who are not interested in their products/services.
This will adversely affect the reputation of the business and reduce the ability to reach real potential customers.
A good example from the success of Louis Vuitton in identifying target customers.
Louis Vuitton branding and business focus in the Asian market, targeting high-income customers in the average age of 20 – 50 years old.
They are usually consumers with high demands on product quality and luxurious appearance. At the same time, they often have a desire to express their self-worth and improve their status in life.
Understanding customer psychology as well as their necessary needs, Louis Vuitton has been very successful in identifying target customers and providing them with the best product and service experience.
3. Top 5 ways to identify target customers
Market research
Market investigation is an indispensable tactic if businesses are in need of identifying target customers.
This method is used to learn about the characteristics, needs, preferences, and characteristics of the target customer file.
Analyze existing customers
Existing customers are also a great source of information for businesses to exploit to find target customers.
Look at the characteristics of customers who are using your products or services to identify similarities between them and your target customers.
Use of customer data
Use the existing customer data of the business to identify and analyze the characteristics and behavior of the target customer file.
Example: Using tools Google Analytics, helps provide a variety of information about customers: name, age, occupation, hobbies, daily schedule on social networks…
Search for information on social networks
Social networks save countless information and electronic footprints of users. From there, marketers can find people who show interest and interest in your products/services.
Learn about your competitors
Learning about competitors and the customers they are targeting is also a method used by marketers. Using the knowledge of competitors in general, as well as their target customers in particular, businesses can choose their own target customer groups.
Read more: Storytelling – The art of telling a story that touches customers’ emotions
4. Common mistakes when defining target customers.
However, the identification of target customers may also encounter the following mistakes, affecting the effectiveness of marketing and business campaigns.
Not doing enough and in-depth research on the target audience
The above mistake starts from the small subjectiveness of the marketer but can lead to misunderstanding or serious misdirection of customers.
Do not update information about customers
The market changes every day.
In order to stand out in the crowded competitive market, businesses need to update information about their customers continue to come up with the most appropriate and effective marketing strategy.
Identifying too many target customers at the same time
This leads to businesses having to focus resources on too many objects at the same time, which most likely will not achieve high efficiency.
No clear direction for marketing and business campaigns
Identifying target customers is to help focus marketing resources and strategies on the right audience.
Therefore, without a clear direction, it will be difficult for businesses to identify target customers and reach them properly.
Unable to determine the unique selling point of the product/service of the enterprise
Every business needs its own unique personality. For businesses that can’t differentiate themselves from their competitors, they won’t be able to find their own target audience either.
This mistake will make it difficult for businesses to survive the fierce competition of competitors.
CleverAds can help businesses avoid unnecessary mistakes with just 1 method: One Stop Digital!
CleverAds will help businesses plan marketing campaigns, and at the same time identify the special points of the business, Identify the exact target customer and execute an effective marketing campaign.
5. Conclusion
Identifying target customers is extremely important in the marketing and business campaign of a business.
However, misidentifying your target audience or not clearly orienting your marketing and business campaigns can have a negative impact.
Therefore, businesses need to clearly define the target customers and the orientation of each marketing campaign, in order to avoid unnecessary risks, heavily affecting the revenue and reputation of the brand.
