chapter 4: profiling your target customer – research to discover customer needs learning...
TRANSCRIPT
Chapter 4: Profiling Your Target Customer – Research to Discover Customer Needs
Learning Objectives:1. Understand that your key to survival is knowing your Target Customer
and providing a product or service that has real value to them2. Identify primary and secondary Target Customers3. Learn how to use media kits and online data to profile Target
Customers4. Understand how specific lifestyles, demographics, life stages and
social group factors impact individuals and their decisions5. Explore various profiling systems6. Profile Business to Business (B2B) customers7. Interview, observe, and survey to gain insight into your Target
Customer8. Develop your customer-profiling ability into a reflex9. Visualize your Target Customer by preparing a Target Customer
collage10. Constantly review and update information on your Target Customer
The Power of Profiling
Understanding your Target Customer is your key to survival in small business
The goal is to find a market niche Developing long-term relationships &
community is essential The Success & Challenges of an Autistic
Entrepreneur The Source Book of Multicultural Experts
2011/2012
Three Types of Target Customers
Primary Target Customer Possesses the resources to purchase your product Has a need or desire & the authority to make the
purchase Can be reached at a reasonable cost
Secondary Target Customer Almost slips away before you can focus the camera Keeping good records will help you identify them May lead you to the invisible customer
Invisible Target Customer Appears after you have the courage to open the doors
and talk to whomever walks in
What Can We Learn From Published Sources?
For many businesses print media will be an important part of the promotion mix
Media sources have conducted extensive research to develop demographic & psychographic profiles of their Target Customers
The key is to know which media sources your Target Customer reads
Reviewing the Media Kit Changing Profiles
Action Step 24: Media Kit Assignment - Target Customer
Choose 5 magazines and/or online sites that your Target Customer reads or visits
Locate a media kit for each Compare the magazines & sites using your new
eyes and define the target market for each Compare your new-eyes profile with the
demographic & psychographic information and rank the magazines from 1 to 5
Even if you can’t afford to advertise due to costs, you can keep an eye on competitors & your target market
Profiling In Action – Action Step 25: Initial Customer Profile
Based on what you know continue to profile your Target Customer using: Census, SRDS, Strategic Business
Insights Market Research.com, Experian EASIdemographics
To profile your B2B customers use: Hoovers, D&B, Edgar Online,
LinkedIn Jigsaw, infoUSA, ThomasNet
Profiling Business to Business (B2B) Customers
Segmentation of business markets include many factors including: NAISC or SIC Codes, Sales Revenue Number of employees, Location Purchasing method, Credit risk Years in business, Ownership type International vs. U.S. sales Ability to reach decision maker Economics, Competition & Barriers to entry
Profiling Business to Business (B2B) Customers
Use available secondary business information to help you: Check a firm’s financial stability Discover ownership of a firm or its subsidiaries Locate specific companies & search industries Size up current & new markets Search potential prospects or employees Identify decision makers so you can reach
them Identify & track competitors
Primary Research Is Absolutely Necessary
Field Interviews Gather information to make decision
regarding your Target Customer Find out your competitors strengths &
weaknesses Observing Target Customers
Inexpensive & effective way to learn how your Target Customer behaves
Surveys
Action Step 26: Interview and Observe Prospective Target Customers
Observe your customer in the marketplace Take notes as you simply observe
Prepare for interviews Develop questions in advance Avoid simple yes – no questions Keep an open mind
Consider conducting research online Post questions to social networks Check out Survey Monkey & Ask Your Target
Market
Make Customer Profiling A Reflex
Takes time, energy, and diligent maintenance of sales records
Predicting customer needs will become easier
You may uncover previously invisible customers
Listen to unexpected requests and be quick to respond to these opportunities
Visualizing Your Target Customer – Action Step 27: Target Customer Collage
Develop a collage – a composite image of your target customer
Make a list of your customers’ favorite things and make it part of your collage
Your collage should represent the demographics, geographics & psychographics of your market
Keep your collage in your line of sight as you prepare to hit the market
FOCUS! FOCUS! FOCUS!
Summary – Question to answer through profiling your Target Customers
Who are my Target Customers? How can I best reach them?
What need will my product or service fill? Where & how can I communicate my message with a
minimum of confusion to my Target Customers? What additional services do my Target Customers want? What quality of service or product will meet my customers’
desires? What are they willing to pay? Who else is after my customers? Why do my customers act the way they do? How can I build a long term relationships with my customers
and encourage them to be raving fans & thus recruit new customers?
Think Points for Success Psychographics is the charting of your customer’s
life, mind, soul, and spirit Segmenting is discovering the piece of the pie you
should focus on You can save a lot of time & money by using market
research that has been conducted by others and such research should always be undertaken first
To discover your target market, use everything available; media kits, Internet metrics, demographic studies, life-style segmentations, and census data
Use NAISC or SIC codes to begin your research for business-to-business customers
Focus on your Target Customer