Here are 5 steps to help you build effective target Customer Profiles:
1. Describe your ideal target customer in broad terms
Start with a high-level view of your ideal target customer. For example, if yours is a B2B business, in what industry does your ideal customer operate? What are the customer’s attitudes about the products and services you provide? And how do your offerings fit within the customer’s search for products and services?
2. Identify your ideal customer’s demographic, psychographic and socioeconomic characteristics
This step is most applicable to B2C businesses. Demographics include data like the ideal customer’s age range, gender and race. Psychographics are the customer’s behaviors, beliefs, personality, hobbies and interests. And socioeconomics are factors such as household income, education level, occupation, location (i.e., ZIP code) and type of household (e.g., single, married couple, number of children).
3. Answer the question: How will our products or services help our ideal customer achieve certain goals?
Do your products or services help your ideal customer solve problems or avoid pain, do they make life easier for this customer, or do they provide this customer with pleasure or enjoyment? Also, are there any reasons why this customer would hesitate to do business with you? If so, figure out what you can do to alleviate these concerns.
4. Divide your customers into categories based on revenue streams and profitability
Your ideal target customer should also be one of, if not your most, profitable customers. So you need to determine which of your customers are generating the highest gross sales and profits for your business.
One approach is to categorize all of your customers as A, B or C customers based on the sales and revenue they generate. Your target customer should ideally fit within the “A” customer category.
5. Determine the best ways to reach your ideal target customer
Once you’ve gathered all of this information, you can begin devising a targeted marketing plan designed to reach your ideal customer specifically.
For example, what types of media does this customer typically consume — television, radio, print or online? What websites does this customer regularly visit and what types of content does he or she prefer? And what are some search terms the customer might use to locate a business like yours online?
Spend some time now building a profile of your ideal target customer if you haven’t done so yet. This could help increase your sales as well as your overall profitability.
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