When was the last time you did some target market analysis? Do you know exactly WHO you’re trying to reach with your services? Have you identified HOW you can help them through their pain points?
Or does this all sound foreign to you?
Knowing your target market is an integral part of running your business. Sure, you can have a solid message but is your target market hearing it? There’s no way to know unless you can identify WHO your market is and how to get your message to them. Without this information, you are practicing what I call “hope marketing,” in which you’re just throwing your message out there and HOPING someone notices and becomes your client. Sorry to say but that process is a waste of your valuable time and skills.
1. You’re not Walmart so don’t try to appeal to the vast population. Walmart’s success depends upon carrying thousands of products that appeal to a wide variety of people of varying economic levels, all at discount prices. You don’t have enough time in the day to serve the same number of customers as Walmart nor can you possibly carry thousands of products. Identify your niche and dig down deep. Just because a niche – aka your target market – may be small, doesn’t mean they won’t spend money. If you’re targeting the correct market, you’ll find people willing to purchase your services or products.
2. Save money on your advertising and marketing costs. At some point you’ll need to spend money on advertising, either on local radio stations, in local magazines, or sponsored ads on Facebook. Successful advertising, however, highly depends on reaching your target market. Again, target your niche market – as small as it may be – because they are the ones who will benefit the most from your products and services. They are the ones who are struggling and who will listen carefully to what you have to say, all because you have the answers to their prayers.
3. Knowing your target market will help determine your prices. Approach this from two perspectives: think about the target market you WANT to serve and do some research into what price points they can afford. Now think about what price you’d like to offer and determine if your ideal market can afford those prices. (Let's use coaching as an example) If you discover they can’t afford your 1:1 pricing, consider offering a group coaching program or other self-study program they can afford now. This exercise can be the impetus to creating a library of products of varying price points which will attract even more people into your circle of influence.
In the end, every business needs to know and understand the demographics of their target market. For solopreneurs running on limited budgets, this information is even more important so you can spend your advertising money wisely. Discover exactly what your niche needs, what their struggles are, and how to help them overcome those struggles. In return, they will flock to you when they realize you can relate and that you have answers.