Importance
To identify who your product brings real value to, you must first identify the pain-point that it solves. Dissected to its most basic elements, your product’s value comes from its ability to save a customer time, save or make them money, bring them joy or remove a pain. If they won’t experience the value of your offering, they aren’t your customer. If, for example, you have a time saving solution for small businesses, then you may be addressing the pain-point of inefficiency. Businesses who’re already operating at maximum efficiency aren’t your customers, therefore, as they don’t have the relevant pain-point.
How to identify
Identifying your target market is the process of finding the people who will see the value in your product. Competitor research can be a useful tool to find your custom base. A business with a similar offering is likely to attract similar customers, though you will need to consider how your product differs and how this may impact your audience.
Examining industry-specific publications or associations can give an idea of what the trending topics are, and who your product will provide value to. For example, if your product is highly technical and requires a good understanding of IT systems, the readers of computer magazines are likely to be of interest. Take into account audience demographics and consider how their pain-points may differ. If your product can help resolve these, then they are potential customers. Becoming familiar with the publications, events and online spaces that your customers are interested in also provides useful marketing vehicles later in the process.
Communication with your target customers is invaluable. It is the most effective way to gather whether you’re targeting the right customers and if you’re sufficiently communicating the value in your offering.
A more niche market can be easier to target, particularly for start-up businesses. Industry specialist publications, websites, forums and events can connect you to your target audience, whereas a broader target can be more scattered and difficult to reach.
Marketing strategy
Identifying your customers allows you to better utilise marketing tactics. Without certainty of who your audience is, your marketing techniques can’t be targeted. The most effective campaigns are highly researched, reaching likely customers in the places they’re most likely to spend their time. Identifying the people who experience the pain-point that you improve helps to create valuable messaging.
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How do you identify your customers? How did you find out where your prospects spend their time?
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