Do you know who your ideal clients are, or are you unaware of the type of customer who spends money with you? The more informed you are, the stronger your business will be, making it easier to plan and achieve your goals.
Ultimately, the smarter you work, the less stress you will experience, so read on to find out why identifying your ideal clients is so important.
This article was inspired by one of our recent episodes of The Simplified Marketing Podcast in which our Branding Expert Georgia Stylianou of Marshmallow Design talked through how she helps the businesses she works with identify their idea clients.
Why do you need to identify your ideal clients?
Understanding who your ideal clients are will help you become more targeted with your marketing strategy to produce a stronger ROI on your spend. The tendency can be to spread yourself across a multitude of social media platforms in the belief you need to have a strong presence on them all.
However, the product or service you sell is unlikely to be a good fit for everyone, so it’s essential to understand who you target audience actually is. That means finding out their average age, where they live, gender, the types of brands they spend money on etc. and most importantly of all, what sort of problems do they need you to solve?
What are the benefits?
Being able to position your business as an expert in a focussed area gives you more credibility than a company who offers to do everything – because invariably, they will not be specialists in all areas, which can affect your reputation in the long run. Whether it’s a particular service or product, or maybe a location – creating a niche identities you as a business who can directly address the issues of a particular customer.
The 80/20 principle certainly applies, whereby 80% of your business is derived from 20% of your clients. Typically, you will find a strong common link between this core section of your client base, which means if you can focus on finding similar clients, you stand a better chance of increasing long-term, profitable and sustainable revenue.
How do you find your ideal client?
For start-ups, identifying your ideal clients should be the first thing you do as it will dictate every subsequent business decision you make.
Frist of all, identify the problem you are trying solve for customers. For example, if you provide loft conversions, how is this helping the property owner? Do they want to increase the property value? Install a new bedroom for a growing family? Create a games room for better quality of life? There is always a specific reason why a product or service is purchased by a customer.
Another great place to start is by simply having conversations – be it new or existing customers. People generally like to talk about their likes and dislikes and you can find out some common links across your audience in terms of age, occupation, gender, income, where they shop and more.
Facebook and Google Analytics can provide some helpful stats on locations and popular visited pages on your website. Social media analytics can also help and help you identify which platform offers the best results for you.
Do you need to keep updating your ideal client avatar?
When you start to identify your target audience, always remember that this is your current customer base and that it will evolve over time. You should ideally conduct regular reviews of your marketing to ensure your spend is being put to the best possible use to produce a strong ROI. As your business grows, your audience is likely to change, so it’s important to keep up-to-date and always able to respond directly to their needs.