Why does a business need target audience analysis and how to implement it correctly

The goal of any business, regardless of the niche it operates in, is to ensure stable sales, and with it, the level of income. But all this will directly depend on how well you understand the interests of your potential buyers and whether you can satisfy them. That is why every self-respecting company carefully studies its target audience before entering the market. If you know what your potential client is interested in, you can adjust the range of your products so that it is easier and simpler for you to interest him. As a result, the effectiveness of advertising campaigns will increase, and the costs of their implementation, on the contrary, will decrease.

You should understand that the target audience is not only those people who are interested in your product or service at the moment. This category includes even those who are not yet thinking about such a purchase, but the likelihood of this exists. The needs of buyers are constantly changing and it may well happen that your product will become relevant for this or that person in the foreseeable future. That is, when talking about the analysis of the target audience, you should understand that we are talking about collecting information about all those people who a priori may be interested in your product or service.

By and large, a comprehensive preliminary market research is a reliable investment in the future development of your business. Having initially completed a fairly impressive amount of work and having gained a deep understanding of the state of the market, requests and wishes of potential buyers, you will be able to target your subsequent activities as accurately as possible, including marketing efforts to the right audience, which will automatically contribute to an increase in sales. To implement this work, you will have to conduct a lot of research, use different tools, segment the audience by different parameters and perform other tasks that will help to obtain the so-called "target audience portrait".

We will talk in detail about how to implement all this work as correctly as possible and not miss important points in today's review. The information received will allow you to get a complete picture of the upcoming tasks, assess their volumes and complexity of the solution, and also implement everything as correctly as possible. In the future, you will be able to use the target audience portrait to develop advertising and marketing strategies for your business, promote your website in organic search and social media accounts, conduct offline events, launch interactive activities and perform many other tasks. So, first things first.

Why is it important for a business to correctly create a portrait of its target audience

No matter how much effort you put into developing marketing strategies, expanding the range of goods and services provided, you will not be able to satisfy the needs of absolutely every person. That is, you will not be able to attract people with different interests, tasks, living in different countries of the world to your business. That is, you need to focus exclusively on the audience that will be the main one for your business. That is, it is important to know who your end consumer is and build a future interaction strategy based on this.

Initially, you should understand that targeting the right market segment is what will help you concentrate your efforts and money on those people who will subsequently contact you for purchases and, accordingly, generate income. Thanks to this, the costs of advertising campaigns are reduced, and their effectiveness is increased. This is also relevant for email marketing, since you will not have to send the same messages to absolutely everyone whose addresses are in your database: you will initially focus on people who may be interested in your products. And this is the key to high conversion and excellent sales figures. But these are far from the only reasons for the need to draw up a portrait of the target audience. We will talk about other aspects that are not so openly on the surface below.

Bypassing the closest competitors

Beating your closest competitors is the cherished dream of absolutely any business owner. But here you must understand that any mistake you make, any shortcoming in your marketing strategies, when setting up targeting is what takes potential buyers to third-party sites where they make purchases. That is, even if you can offer a person the product he needs and at a good price, this is not a guarantee that the order will end up in your basket. Here, everything depends on how carefully you work out all your business decisions.

And the first thing you need to do here is to find your target audience, and then form a group of loyal customers. Those who will return to you again and again with orders, will be willing to share reviews, tell their friends and acquaintances about you. These are those who will under no circumstances go to your competitors. Experience shows that even a small audience of regular customers can provide a stable flow of orders and good profits compared to dozens of random orders. That is, loyal customers are those who will stay with you under any circumstances. It is they that the business as a whole should focus on. And the greater their number, the more significant your advantage over competitors will be.

Expense optimization

Any marketing strategy, advertising campaign should be thought out to the smallest detail and be focused on the target audience. If you do not provide for this, then you will simply waste your own time, effort, money, but will not get the desired result. And here it does not matter how many advertising campaigns you launch. In most cases, even one well-written ad aimed at a person who is interested in your products, services and revealing the benefits and advantages of cooperation with your company will be enough to get a new customer and hold the attention of a regular one.

You can make your strategies as accurate and effective as possible only if you understand who you are targeting, and recognize the pains and wishes of potential customers. It is this information that you will use to set up targeting when distributing the advertising budget. As a result, you will be able to increase the open rate and readability of the mailing list, which will contribute to increasing conversion. This is also relevant for any other advertising strategies.

Getting more information about the customer base

The customer base for any business is a fairly narrow audience that meets certain criteria. Let's assume that we are talking about an online store of goods for newborns. In this case, when setting up targeting, the main focus will be on young parents. But in order to make the most relevant offers, you do not need to additionally segment the audience, as an option depending on what these very parents are looking for: furniture for children, clothes, strollers, accessories. We must not forget that your target audience can also include grandfathers, grandmothers or other relatives, acquaintances who, among other things, will be interested in presentable packaging of goods.

That is, it is important to ensure the maximum detail of your offers, because this is the only way to cover the maximum audience. That is, all those marketing and advertising campaigns that you plan to launch here should be adapted to each potential buyer. And this means that you must understand who your business is targeting and then prepare the most interesting and tempting offers for each. This is the only way you can significantly increase the likelihood that an order will be placed on your website.

Formation of a reliable foundation for subsequent growth and development of business

Absolutely every business representative is determined to expand and develop their company, increase stability in the market, form the image of a successful organization and, of course, increase sales figures and their own income. And the first thing to start with to implement such an idea is to form a permanent customer base. Even a small group of regular customers can become the base that will contribute to the expansion of your business.

This means that you need to make efforts to form a group of loyal customers. And this can only be done if you offer them products that fully satisfy their needs. That is, you need to know these very needs from the very beginning. Without this, you will not be able to implement your idea. But satisfied customers are those who will, without additional persuasion and promises, share reviews about cooperation with you, and positive ones at that, recommend your brand to their friends and acquaintances. That is, such a buyer is this is your free advertising.

Factors that are important to consider when creating a portrait of the target audience

We hope that now you have realized how important it is for the development of the business as a whole to focus on the target audience. That is, you must understand who you will be focusing on in your subsequent work, who you will be targeting with your advertising campaigns. Here it is important for you to create a portrait of the target audience. In this case, we are talking about a detailed image formed on the basis of data obtained by processing information collected from various sources. This includes:

1. Psychrography.
2. Behavioral factors.
3. Demography.

We will consider each of these points in more detail, which will help to create the most accurate portrait of your target audience.

Psychography

This category includes all those factors that will allow you to find answers to the question: “Why does the client choose your products?” In particular, it is important to consider:

• the interests of the potential buyer, his hobbies, preferences in education, travel, recreation, etc.;
• the values he follows, for example, caring for health and, as a result, buying organic products, the desire to follow modern fashion trends;
• fears, for example, the fear of buying clothes without trying them on, wasting money, not receiving your order;
• motivation, that is, what contributes to making a purchase, for example, convenience, saving time, a large selection, good quality of goods.

That is, it is important to consider the psychology and psycho-emotional state of the potential buyer.

Behavioral factors

By assessing the behavioral factors of your target audience, you will be able to understand how people interact with your products, services, and on what basis they make a purchase decision. This is what will allow you to build the most correct process of promoting products or services, as well as the interaction with the audience during sales. This category includes the following parameters:

• information search channels, that is, how exactly customers find your business: organic traffic, social networks, advertising, recommendations from friends, etc.;
• buying habits, such as how quickly a decision is made to make a purchase, whether reviews and third-party information are additionally studied;
• how the audience reacts to promotions, recommended content, email newsletters, advertising, interactive activities and other types of interaction with your business.

If you understand how your potential buyer thinks before making a purchase, you can unobtrusively persuade them to take the target action.

Demographics

Demographic characteristics for the most part form the basis of any portrait of the target audience. This includes everything that allows you to find the answer to the question of who the client of your business is. In most cases, these criteria will take into account:

• Gender. The communication style, visual design of advertising materials, and online business platforms will be built based on this parameter.
• Age. Here, it is important to provide for a breakdown into separate age groups in order to offer each of them the most relevant content, goods, or services that will obviously be of interest to people.
• Place of residence. This is a mandatory point that takes into account the geography of the target audience. Here, it is important to understand not only the regions in which your business operates, but also the needs of residents. Surely, you have already noticed that residents of megacities behave somewhat differently in purchases than those who live in small towns.
• Marital status. The needs of family people often differ from the requests of single buyers. The former mostly prefer practical, convenient solutions.
• Level of moves. This parameter has a direct impact on purchasing power. Based on it, you can set the price level.

As you can see, demographics takes into account a large number of indicators, and each of them is quite important when drawing up a portrait of the target audience.

The first stage of determining the target audience

You need to start work related to determining the target audience of your business with a direct study of the needs and behavioral factors of people. Those who, with a high degree of probability, you will be able to interest in your goods or services, that is, attract to your business. To implement such an idea, you should collect information and analyze it. At this stage, it is important to understand how the market is structured as a whole and know what tools can be used when performing such work.

To correctly perform such work, use the following recommendations.

Analyze your audience of regular customers

The main source of information about your audience is those who have already interacted with you. That is, if you analyze them, you can easily create a portrait of your target buyer. In this case, you should pay attention to the following points:

• gender, age, geography of residence;
• behavioral factors, namely, what products were most often purchased, what pages were visited, how actively they responded to your appeal, advertising, interactive activities;
• what unites all buyers, namely, what in your product attracted their attention the most: price, quality, assortment, free delivery or something else.

In order to automate the process of collecting all this information, you can use CRM systems. The information received can subsequently become the basis for your advertising campaigns. It is also important to pay attention to how many times a particular person contacted you with orders. That is, you can divide your audience into new and regular customers.

Carefully study the market of your closest competitors

By analyzing the work of your competitors, you will be able to understand who else is interested in similar products and understand whether you may have missed something when creating your target portrait. You will also be able to identify effective audience attraction strategies, as well as those solutions that have failed. Thanks to this, you will be able to understand what customer requests your competitors have failed to satisfy and, accordingly, you will be able to prove yourself in this niche. In this case, it is worth paying attention to the following aspects:

• The type of content used on the site, as well as its tone. This will show you the format in which communication with potential buyers is conducted.
• User reviews and ratings. This is what will allow you to understand what exactly the audience values in the process of cooperation, what points they pay most attention to, what evokes positive responses from them, and what, on the contrary, negative ones. This is what will help you improve your own service and the product as a whole.
• Channels through which interaction with the brand is conducted. Thanks to this, you will be able to understand where exactly your competitors are promoting, which of these channels give the best results in practice. That is, this way you will be able to understand where exactly your audience is present and already direct your own advertising campaigns to it.

With such information, it will be much easier for you to form a portrait of your audience, while minimizing the time and material costs of this work.

Connect specialized software solutions to the work

Carrying out mass collection of information manually, as well as structuring it and making an appropriate conclusion - these are extremely complex and voluminous works that will require a lot of time and effort at the implementation stage. Therefore, specialized services and tools will become your reliable assistant here. In particular, it is recommended to use the following to perform such work:

• Analytics services, such as Google Analytics, Yandex.Metrica. With their help, you will be able to see who exactly visits your site and get detailed information about demographic characteristics, interests, behavioral factors. You will also be able to understand which pages of the resource are visited most often, how much time users spend on them, what products and services they are looking for.
• Built-in social networking tools. Here you can also get information about subscribers for each account. This is the data that can form the basis for setting targeting. Alternatively, Facebook Insights will help you get information about the gender, age and location of your audience, activities on your brand pages. Using Instagram Insights, you can see how people interact with your content, how actively they like and comment, save posts and pass them on to their friends, and follow links to the site. If you use video content in your work, then you should pay attention to YouTube Analytics. Through it, you can also get data on the demographic indicators of the audience and its activity. Additionally, you can use targeting functions to test different audience segments separately.
• Artificial intelligence services. Today, there are many neural networks that will help you form a buyer profile based on the personality parameters that you upload to the platform, and also prepare offers for different buyer segments based on this data. Subsequently, you will only need to make modifications. With the existing base, it will be much easier for you to prepare marketing and advertising creatives.

You can also safely use platforms designed for marketing automation. Their functionality involves collecting data on user behavior, as well as subsequent segmentation by certain characteristics, automation of personalized communications. CRM systems will help analyze the purchases of each individual client, estimate the average bill, frequency of orders and overall activity when interacting with your brand. You will also be able to see which products are in high demand at a particular time of the year, whether there are patterns in the behavior of the audience.

This is all that will allow you to develop an individual approach to different categories of buyers, select the best platforms for communication, launch those creatives that will collect the maximum feedback. It is convenient that the final information will be presented in a structured and easy-to-perceive form.

Run interviews, surveys

Surveys and interviews are the tools that will help you get information about the desires and needs of potential buyers as quickly as possible. This way, you can literally find out first-hand what exactly your audience is interested in, how they perceive your product and brand in general, what people like, and what they would like to change. In order for these technologies to work correctly, you need to organize them correctly. In particular, when preparing surveys, use the following recommendations:

• The questions you plan to ask should be as brief and clear as possible. There should be no ambiguity, vague phrases, or ambiguity. For example, “what did you like about the product?”, “what would you like to change about it?”, “will you buy this product a second time?” and so on.
• Experiment with different formats of interaction with the audience. You can simultaneously launch polls on social networks, make an e-mail newsletter, surveys directly in offline stores or on the website. This way, you will be able to reach the maximum audience and understand which channels are more effective in interaction and then focus on them.
• Motivate customers to interact with your brand. Only regular customers, those whom you managed to charm and entice, will voluntarily leave reviews about cooperation with you. But in order to get the most clear picture, they will not be enough. You must understand what other people think about you and your products. Therefore, as an option, offer additional discounts or bonuses for reviews, participation in surveys.

Interview is a more extended format. Here you can ask deeper and more diverse questions, the answers to which will allow you to learn the maximum of important details. Yes, all this will take more time to conduct, but the result will be more voluminous. From it you will learn much more valuable information.

What is target audience segmentation and why is it needed

To perform a high-quality analysis of the target audience and get a portrait of your potential buyer, you need to have a fairly large amount of relevant data on hand. We have already talked about the ways in which they can be obtained. But it is also very important to additionally segment your audience. This involves dividing potential buyers into separate groups that will have common behavioral factors and other indicators. Thanks to this, you will be able to develop separate advertising and marketing campaigns for each such category of clients, taking into account their needs, specifics, thereby avoiding one of the most common mistakes when performing these works - an attempt to cover all clients with one ad.

To perform such work, we recommend using the following segmentation methods:

• Segmentation depending on demographic status. Here you can identify separate groups depending on gender, age, marital status, education, income level.
• Segmentation depending on place of residence, on business features. You can divide the audience into different groups not only by city or region, but also by country, climatic zones. It is especially important to provide for such a breakdown for local businesses, goods that are relevant in a particular region. Alternatively, in the southern regions, beach accessories and sunscreen cosmetics will be in high demand, while in the northern regions, practical, warm clothing will be in high demand.
• Segmentation by behavioral factors. Depending on this criterion, potential buyers can be grouped based on their reaction to promotional offers, frequency of purchases, and level of loyalty to the brand. Alternatively, you can put consumers who buy only promotional products in a separate category.
• Psychographic segmentation. In this case, we are talking about taking into account the interests, values characteristic of your audience, lifestyle, and behavioral factors. This is what will also help you correctly build your strategy in subsequent work.
• Segmentation by needs. Here it is important to understand what problems are relevant for your potential buyers, namely how you can solve them with your product.

Why you need to consider audience segmentation: main advantages

We have already mentioned above that segmentation will help you build clearer and more correct advertising and marketing strategies that take into account the general specifics of each of the customer groups. It will also help you understand your audience and take steps to meet their needs, ensuring more effective interaction between the buyer and the business. So, among the main advantages of target audience segmentation it is worth highlighting:

• the ability to make the most accurate offers to potential clients;
• significant savings in the advertising budget: it will be spent entirely with benefit, no empty spending;
• increased conversion: the number of target actions on your site or any other platform will increase significantly;
• formation of a good reputation for your brand, increased loyalty on the part of the user audience;
• the ability to provide the audience with more accurate, personalized offers that can indicate with high accuracy the solution to user requests.

The main thing after receiving all this information is to use it correctly. Don't make the mistakes that others often make at this stage, namely, create a high-quality portrait of a potential buyer, and then simply launch one advertisement and mailing to everyone.

Additional recommendations for improving the effectiveness of target audience analysis

Finally, we will provide a number of recommendations that will help you improve the effectiveness of marketing campaigns. Here we are talking about the fact that it is important for you to learn to understand the needs of potential clients and build the most effective interaction with them. In particular:

1. Always listen to the opinions of your potential buyers. You must understand what they are looking for, what requirements they have for both the product itself and for interaction with the business. Knowing what problems your client faces, think about how you can solve them with your products.
2. Answer user questions sincerely and professionally. Do not avoid answers, do not embellish the situation when preparing an advertisement, show what benefits your client will receive from working with you. But remember that this information must be truthful.
3. Strengthen relationships with regular customers, increase the level of trust. It is important for you to show yourself as a leader in a particular niche, a professional. Those who will guarantee the quality of products, services, will be able to take responsibility in the event that the product turns out to be defective.
4. Choose those channels for interaction with the target audience that will be most effective in your case. That is, you must understand where your customers are represented and direct your advertising there.
5. Constantly adapt to changing market trends. You should follow current trends, adjust your business to them and, as a result, to the demands of the audience.

There is nothing complicated in these recommendations, but in the end you will be able to implement everything as correctly as possible and make your business successful both today and in the future.

Let's sum it up

In order to collect a portrait of your target audience, it is important to take into account a lot of nuances, collect a lot of information, structure it, analyze it. All this costs time and effort. And this is despite the fact that good results must be obtained literally here and now. Therefore, it will be very, very difficult to cope with the upcoming tasks manually. And here, tools that can automate this work will come to the rescue of specialists. And everything would be fine if the system did not react extremely negatively to such actions, applying access restrictions, blocking, which can negate all the work that was done earlier.

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