Every business owner relies on customers for the business to survive. This is why it is important for entrepreneurs to know their ideal customers even before launching their business.
As a business owner, defining your ideal customer is one of the key elements you must get right from the start.
Did you just ask but why? Well, it is because of the role that customers play in the success of any business. The fact is that anyone can be your customer, however, everyone won’t be your customer.
Therefore you need to have an understanding of would-be customers for whatever product you are bringing to the market.
What’s your customer definition?
Getting your customer definition right is not only important to increase sales and revenue but also to take your business to the next level.
In fact, being able to define your ideal customer determines the right and ideal marketing strategy to adopt.
It could also help you in pricing your products and services. Defining your target market simply refers to understanding your target market.
Below are some of the main factors to be duly considered in the process of defining your ideal customer.
#1]. The Place of Market Research
Defining your ideal customer is an exercise that requires information and the best way to obtain this key information is through market research.
The important information which can be obtained through market research includes the behaviour of the market and the level of marketing competition.
Apart from the fact that market research enables you to obtain information about the level of competition in the market, it also helps in the segmentation of the market.
The validity of market research as a great marketing tool for defining your ideal customer comes from the fact that market research is methodical, qualitative and quantitative.
After your market research, to successfully define your ideal customer you have to put some things into consideration. The factors that would determine that you successfully define your ideal customer are;
This is another factor to put into consideration to successfully define your target market. You have to first understand the enlarged human population within the market. Understanding the demographic components of the population will help you to define your ideal customer.
The key components that make up the demography of the market are gender, age and religion. Others include the level of education, nationality, location, income level, occupation, etc.
Understanding these demographic factors and how they function in the market will help you to define your ideal customer.
Having understood the important demography of the market, the next thing to consider is the psychological lines.
Understanding the psychographics of the market means understanding the personal and psychological attributes of your customer. This essentially helps you measure the behavioural attributes of the market.
The psychographic components you need to understand to successfully define your ideal customer are their goals and motivations. Also, you need to understand their attitudes, lifestyle, behaviour, interests, and values. With this information, you can now form the basis of your ideal customer defining effort.
#4]. Define your market
In order to define your ideal customer, you also need to define your market and it’s very important. Every member of the population can be a potential customer but they are not your market.
Your market refers to that segment or group of the population which has or will have the need for your product and also afford it. Most businesses failed because the initiators fail to define the ideal class of customers.
Defining your market is your way of separating the wheat from the chaff. Your effort at defining your market starts from the information obtained from the demographic and psychographic data which you obtained through the market research which you conducted.
#5]. The needs of your market
Having defined your market, you now have to understand the needs of your market. There is a particular need for every segment of a market. You have to understand the needs of the market which you intend to serve.
When you know the needs of your target market, you can easily create an avatar of the people in that particular market. And this in return, tells you who your ideal customers are going to be.
But, to properly understand the needs of your market, you first have to understand the priorities and goals of your customer. A good understanding of these two things needs about your customers will enable you to craft a
product that will meet their needs and aspirations.
#6]. Ability to pay
Your ideal customer must have and demonstrate the ability to pay for the solution you are providing. You can’t sell a Ferrari to an average worker in a company. He or she is not your ideal customer.
In fact, your ideal customer is the person who has the need and the ability to pay for your product or service. When creating an avatar of your ideal customer, you should state their monthly income level so you are clear on whom to market your product or service to.
From your target market or the group of the population that has the need for your product, you should concentrate your effort on the customers with the most ability to pay for your product. These are the people you should be serving.
The customer is king in business and every business and enterprise should understand and bear this in mind. With this, you will understand the place that defining your ideal customer should take in your business and entrepreneurial endeavour. Having understood your ideal customer, it is very important to make sure that your product and service offering successfully meets their needs.
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