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Understanding generates new business

by | Nov 2, 2016 | Audience + Avatar | 0 comments

Do you understand your perfect customer?

One of the biggest issues we encounter is businesses that think they understand their customers, and think they know who they are trying to attract, but in actuality their understand of their target audience is hugely underdeveloped.

While this might not seem like a huge issue, the importance of understanding you customers cannot be understates,  as meeting your customers wants and needs profitably is what marketing is all about.

Additionally, the more you know about your customers, the easier it is to create relevant content that they will actively engage with. This continued engagement generates trust, relationships and consequently rapport, and is therefore crucially important for generating business.

Segmentation

While there are a range of different ways of developing a deeper understand of your customers, segmentation must be the starting point. This is where the market is effectively split into groups of individuals with similar wants and needs. There are three main ways in which markets can be segmented:

• Demographic segmentation
• Psychographic segmentation
• Behavioural segmentation

All three of these parameters of segmentation are crucially important, as they can be used to develop a deeper understanding of your customers. Demographic segmentation is key because it outlines the demographics of your audience. While this isn’t ideal for in depth understanding, it gives you a general outline of the audience you are targeting.

Psychographic segmentation is much more personal, and therefore if this can be effectively implemented then it can tell you a huge amount about your target markets interests, style, hobbies, and desires. Thus, aiding the evolution of a much more detailed and focused customer profile.

Finally, behavioural segmentation is concerned with the purchase behaviour of your customers, and is therefore key for your marketing as this can identify the occasion in which they make purchases, or the benefits they are hoping to gain from the purchase.

This information is again crucially important for the creation of a much more fine-tuned customer persona. This is because it enables firms to discover the motivations of their customers, which are often linked into their demographic and psychographic profiles. Thus an effective segmentation strategy can go a long way towards you developing a much more well-rounded understanding of your customers.

Relevance = Rapport

But why is this important? Well, once you have a more fine-tuned understanding of your customers, you will know what they like, what they don’t like, where they hang out, what their biggest fears are etc. Therefore, effective engagement with them is much easier. This engagement should be much more meaningful, as the deeper understanding will enable you to touch on their points of both interest and pain.

Relevant content is key because if you can attract customers to your site through the curation of creative, unique and relevant content in which they are interest, then that can generate rapport. This is because they will begin to trust your content, and use it as a resource for their business.

With that rapport you will then have the opportunity to impress them and convert them into new business through the use of calls to action! Furthermore, if it is hitting the spot with some customers within your target audience, then it is likely to be shared within that network of customer too, increasing brand awareness, engagement and thus business.

Therefore understanding breeds relevance, relevant content develops rapport, and rapport generates business. If you feel you need support with developing a deeper understanding of your perfect customer, or with the creation of a strategy to engage with them, book in for a FREE 30 minute consultation today!