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Choosing a Target Audience that will be Profitable to Your Business

target audience 300x225 Choosing a Target Audience that will be Profitable to Your Business

Why Even Bother Defining a Target Audience?
Many businesses operate under the idea that they will offer products and anyone who needs or wants them will purchase from them. This may have been the case in the past, but with the vast selection that consumers have online these days, companies need to do more to gain customers. Think about it from your own perspective- are you more likely to buy from a site that is trying to be everything to everyone or just wants to serve your personal needs and interests? As consumers we reward the effort that companies put into understanding and serving us as individuals. This is why niche companies do so well. The secret of having a strong target audience is that your company can operate like it is in a niche market while having a product that is much more general. What does this mean for your business? A strong target audience can drive profits and provide excellent structure for all of your company’s efforts.

How Will a Target Audience Benefit My Online Business?
Once you know who you are focusing your company’s efforts on other decisions come much easier- what to name your company and website, what the design of the site should look like, how to layout your site, etc. Say for instance your products are back-to-school items and the target audience is defined as males aged 13-22 in metropolitan areas. You would probably want a name that emphasizes the “coolness” of your products and the way they’ll make your customers stand out. Most likely the design of your site should be something flashy with graphics and lots to look at that catches the eye. The products themselves can be more technical in their description and the options fairly numerous. This site with all the same products would be very different if it was for mothers buying items for their children in the same age group. If you try to appeal to both of these crowds you are probably going to lose some of both audiences. Teenage males do not want to shop where their mothers would shop, and vice versa most mothers would not find the things that their teenage sons like appealing. In this example defining a target audience is crucial to the success of the business.

Is There Any Benefit to my General Business Operations?
Defining a target audience can help define other ancillary aspects of your business. A target audience can help your business know where to sell, what functions to attend, who to partner with, what kind of promotions to run, etc. Using the last example if your site was geared toward males aged 13-22 in metropolitan areas looking for back-to-school supplies and not their Mothers it is logical to do demonstrations at school and university campuses rather than grocery stores. You might want to partner with a soft drink or energy drink company as opposed to a fruit juice or sparkling water. You could do a giveaway that includes men’s products like razors or cologne instead of coupons for future purchases. These types of efforts would be foolish with other target audiences, but they will suit your defined target audience perfectly. This type of connection with the consumer is directly proportional to sales.

So How Do I Define a Target Audience for My Business?
In defining a target audience these are the questions that you need to ask yourself:

  • What is your product? (If you are selling services sometimes this can get tricky.)
  • Who will the product serve?
  • Who will the product connect with and appeal to?
  • How will the product be used?

What is Your Product?
If you are selling physical products this should not be too hard to determine, but if you are selling services you may need to dig a little deeper. If you are selling house or car alarms you are probably not selling electronics per se, but more likely you are selling security. People do not buy security alarms just to look at the technology they can incorporate into their house or car; they buy them for a feeling of protection. Occasionally this is the case with a product as well. If you are selling fingernail polish you are not selling the polish. You more likely are selling fashion and style.

Who Will the Product Serve and Who Will it Appeal To?
Sometimes the person purchasing the product is buying it for themselves but a lot of times someone is purchasing a product for someone else. While it is important to think about who will ultimately use the product often what is more important is making a connection with the person that will be buying it. For example, teachers get a lot of apple-related gifts, but they do not purchase them for themselves. While selling teachers’ gifts it is important to appeal to the kids and parents who may be looking for an item to express their thanks at the end of a school year.

How Will The Product Be Used?
Giving thought to how a product will be used helps determine how that product should be represented and sold. If you are selling sports equipment show it pictured on the field or court. Emphasize its resiliency and performance enhancing features. This will appeal to the purchaser and can also help define the target audience. If you are selling something for a more advanced athlete obviously you will need to go into more depth about the specifics of the product and its appropriate uses because they have greater needs than a casual or first-time user. Looking at how a product is used can define your target audience even further.

How do I Incorporate this into my Online Business?
Once you have your target audience defined it is important to make sure that every aspect of your site (design, layout, products, text, pricing, promotions, etc.) is aligned with the vision of your target audience. The best way to do this is to have a focus group of people meeting your target audience profile review and try purchasing from your site so you can get some good feedback on what you are doing right and what you need to improve on. Better yet, try using the Volusion Forum to get fast and free feedback on your site.

Some Links to Volusion Features that May Appeal to Your Target Audience:
Volusion Integration with My Space and Facebook
Adding Custom Order Page Fields
Product Quantity Restrictions
Customer Package Tracking
Coupons/Discounts/Promotions

-Kate Pierce, Ecommerce Specialist

2 Responses to “Choosing a Target Audience that will be Profitable to Your Business”

  1. Dvid

    really good information for me and my online business…

    Thanks for sharing waiting from your side more new good and informative news.

    Reply

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