Taking Aim: How to Identify Your Target Audience

What's your mark?

Your business – and every business – has a singular driving goal: capturing more customers and, ultimately, owning your market. Today, owning your market doesn’t require you to spend more on marketing and promoting your business than your competitors. However, it does require you to have a more efficient marketing and promotion engine in place that yields maximum return for every dollar and every hour you invest. The process of building this engine doesn’t begin with tactics; rather, it begins with identifying your target. No business – yours included – can afford to market to everyone. Of course, it’s tempting to try to reach as broad an audience as possible in the hopes that no potential customer will slip through your fingers. However, in actuality, this approach will cost you much more money and deliver far less satisfactory results because you’ll have greatly diluted your chances of reaching those whose needs you truly serve. It’s important to understand that your target audience does not encompass anyone who might possibly ever buy your products or services. Rather, your target audience is comprised of those who are most likely to buy and, therefore, become the primary focus of your marketing efforts. Identifying the right niche provides the foundation for success in all aspects of marketing and promoting your business:

• It allows you to focus your efforts on those tactics and mediums that are most effective in reaching this particular group.
• It allows you to tailor your sales message to focus on the needs and concerns that are of greatest relevancy and urgency.
• Most importantly in today’s marketplace, it allows you to build a strong community around your brand comprised of people who love what you do and happily serve as your fans and evangelists.
• And in real dollars and cents, it’s the difference between sending thousands and hundreds of thousands of postcards to achieve the same end result.

Here are the steps you should take to ensure that you’re targeting the right audience:

Segment your customer base.

Who are your customers? Of course, there are many different ways to answer this question. Often it’s easiest to begin by examining your sales data and segmenting your customers into groups based on demographic factors, including age, gender, income level, education level, marital and family status, industry and geographic location. In working though this process, you’ll likely find that a particular group or groups emerge as those who buy from you most often. This simple step can also help you identify how best to market the same product or service to different groups. Some market segments may be better reached at trade shows while others can be reached at home with a direct mail campaign.

Dig deeper.

Breaking your customer base down into groups based on basic common characteristics like gender and income is only step one. To reach and engage with these groups effectively, you’ll need to develop a deeper understanding of both their lifestyle and their motivations. Start with one of your products or services and evaluate it through the eyes of the customers that exist within each group you’ve identified. Make a list that includes every possible reason this type of customer might want this particular product or service. Maybe they are trying to solve a problem, maybe they just want to feel good about themselves or to satisfy a basic need. Going through this process will help you drill down to the specific benefits and outcomes that should be the core focus of all your future communication with this group. Secondly, think about the routines of their day-to-day lives and how this communication will be best received. Do they frequently read the paper? Do they spend a lot of time in the car listening to the radio? When searching for news and entertainment, do they turn on the television or pick up their iPad? Are they likely to be active on social media platforms and, if so, which ones? This type of analysis is essential to ensuring that you choose the right vehicles and mediums to capture their attention.

Keep digging.

At this point, you’ve established a solid foundation of knowledge about your target audience. But if you dig a little deeper, you might uncover additional information that will allow you to sharpen your approach even more. Now that you’ve segmented your market and gained an understanding of what drives your customers, see if you can identify which group or groups offer the most marketing bang for your buck. For example, of all those who are most likely to buy your products or services, which groups represent the most profitable? In the B2B world, these are usually the clients with the greatest longevity or those who utilize services with the greatest profit margin. Also, who are the customers or clients that send you the most referrals? These are your very best customers because they do the work of selling for you, so make sure you are not only reaching your existing customers who fall into this category but also others like them because they represent a group whose needs you are particularly good at serving. Finally, it would be a mistake not to examine who your competitors are targeting. This is not so that you can just copy their strategy and run with it. To the contrary, what you’re really looking for is any gaps in the market that they might be overlooking so you can swoop in and grab these underserved segments.

Put your target to the test.

Now that you’ve identified your audience, it’s time for the rubber of your marketing plan to hit the road of execution, right? Not so fast. You need to put your construct of your target audience to the test to ensure that it’s one that can sustain and grow your business. This process is often called a SWOTT (strengths, weaknesses, opportunity, threats and trends) analysis. Ask yourself the following questions:

• Are there enough people within the audience you’ve identified to support your business?
• Can they afford your product?
• Will they see a legitimate need for it?
• Where do your prices fall in regard to their expectations? Too low? Too high?
• Are there opportunities to upsell other related products or services to this group?
• How much competition already exists in the marketplace for this group?
• Are there any trends you can identify of which you should be taking advantage?

While the process of identifying your target audience may seem complex, these steps hold the keys to competing effectively in today’s marketplace. When you clearly understand who buys from you and why, only then can you find the channels they frequent and become one with your tribe. And wouldn’t you rather own your target market than merely shoot arrows into the dark, hoping one will land?

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Starbucks vs. Dunkin' Donuts

With billions in sales annually, coffee industry giants Starbucks and Dunkin' Donuts have demonstrated their ability to push their product in our caffeine-driven society. But when it comes to harnessing the power of the web to cultivate community around their brands, what are these two superstars doing to ensure that they keep and inspire loyalty among their followers, especially in the face of mounting competition between each other as well as increasing threats from newer players such as McDonald’s? Fame Foundry’s agents weigh in below:

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• The Architect

  Starbucks and Dunkin' Donuts’ approaches to creating meaningful community around their brands and extending their companies beyond a typical retail website is as different as their stores. Both websites have menus, nutrition information, online stores, store locators and social links -- the bare necessities for brands of this nature. The similarities end there. Dunkin' Donuts' version of extending itself beyond the walls of its stores is reminiscent of old gimmicks and half-hearted community-building ploys. There's a healthy version of its menu, links to a running site, some promos and a contest, and then we’re done. Dunkin' Donuts provides no opportunity for its fans to be a part of its website in any meaningful way. Starbucks has done better in their attempts. Noteworthy is the idea of improving the company with your ideas -- something that speaks to core fans. If you love the green Starbucks splash stick, then you should know it was developed in this way. The website allows visitors to share ideas, vote on ideas submitted by others and see which ideas have received the strongest response. It promotes community by encouraging visitors to play a part in improving the brand they love through their own opinions and innovations. Second to this, there’s a blog that’s halfway worth subscribing to if you’re an ultra fan. And while it is not exactly groundbreaking, it has a genuine appeal and seems to keep a decent personal touch to it with little of the usual corporate interference on the surface. Introducing new conveniences, products and free offers allows the blog to be something worth subscribing to for core users and brand evangelists. In addition, Starbucks offers a place for those willing to contribute to their causes. It’s not terribly engaging, but having a directory of people bound to stores and allowing for conversation within each store is a worthwhile effort. It needs more work in order to truly establish the store as a gateway to the local community.

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• The Craftsman

  A website should not only be an extension of a retail store, but it should also be the gathering place for your brand's community of followers. It's important to give that community a great experience when they visit your site, and design plays an integral role in that experience. Dunkin' Donuts and Starbucks handle this experience in very different ways, and both leave much to be desired. Let's start with Dunkin' Donuts. It is quite clear that the goal of this site is to push products. The first thing that I notice is the horrible Photoshop work on the home page. It's a collage of poorly photographed and cut out cups, beans and other products. It's obvious that none of the elements ever appeared together naturally. With coffee beans the size of walnuts and cups the size of buckets, the scale is so ridiculous that the whole thing comes off as cheesy and poorly produced. There is a lot of movement and visual stimulation on the home page, including pop-up menus, enlarging images and a hot pink drop-down menu. It seems that at any moment a man wanting to guess my weight or swallow a sword could jump out from behind that burlap sack. These elements are over the top and a detriment to the functionality, as the page takes several seconds to load. The navigation is passable, but there is a lot going on. First you have the main navigation with drop-down menus. Above that you have a secondary navigation that is one of the smallest I have ever seen at only six pixels. I would think that a store finder and franchising information warrants a larger size. And above in the upper right corner there are 4 graphics that appear to be buttons but do nothing when clicked or hovered over, creating confusion. Secondary pages on the site are cleaner, but there are still some alignment and spacing problems, and an overall lack of design consistency makes the site look thrown together. While some pages look pretty good, others look quite bad. On any given page there are several fonts and many colors, causing it to look very busy. Starbucks' website is in stark contrast to the Dunkin' Donuts site. It's clean and minimalist in a way that feels great on the home page, but once you dig into the site, the pages become bland and boring. The home page immediately gives you hierarchy with a large, interactive feature that is simple to navigate. Below that are three areas that funnel traffic with a minimal navigation system. The light background helps the warm, rich imagery pop, creating terrific contrast. Nothing is in your face or obtrusive. It's subtle and functional -- just what you'd expect from a brand like Starbucks. The secondary pages aren't nearly as strong as the home page. The primary and secondary navigation are minimal to the point of being boring. The leading on the navigation and body text is tight and should be expanded. The subtle drop shadow on the top of the canvas area makes that area appear as a frame and does nothing to enhance the page. Columns are narrow, and content feels cramped. There is wasted real estate under a poorly designed search bar which features a "go" button -- none of which feels like what you would expect from Starbucks. There is also a lot of inconsistency from page to page, especially in the way their products and offerings are displayed, which makes the browsing experience feel disjointed. Both sites have work to be done and leave me feeling disappointed. I expect better from these two captains of the coffee industry. While Dunkin' Donuts is over the top with its bright colors and flashy animation, Starbucks doesn't go far enough with its neutral colors and boring framework. Like a cup of coffee that's too strong or too weak, these sites need to find the perfect brew.

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• The Developer

  Anyone who has studied the metrics on their own website knows that getting people past the front page is a big deal, getting them to stay longer is even a bigger deal, and having someone feel that your site is worthwhile enough to come back is the ultimate score. Today's websites are as much about visitors consuming information, collaborating and interacting as a community as they are about selling a product or service.Interestingly, when comparing Dunkin' Donuts to Starbucks, it is clear that both companies have attempted to make their sites into something more than just a reproduction of their retail storefronts. They both have used various methods to try to capitalize on the enthusiasm of their customers. Dunkin' Donuts offers a feature that allows you to create your own donut, while Starbucks has launched a number of social websites that range from promoting specific product lines to advocating social change to soliciting suggestions to make your Starbucks better. Overall, Starbucks does a better job of providing compelling reasons to visit the site. However, both make the perplexing mistake of burying the content rather than bringing it to the forefront. Dunkin' buries these nuggets in favor of button graphics and forces visitors to hunt to find something interesting. Starbucks hides a single text link for each of their social sites below their Flash movie that gets in the way of finding something more useful. Both companies have very active Facebook pages with posts happening every few minutes -- not that you would know this by looking at the front page of their site. What's that you say? The goal is to sell product? Well, I have a question in return: Isn't it necessary to drive traffic to your site in order to sell products online? If there are 4.5 million fans on Starbucks' Facebook page posting every couple of minutes, you do the math. I'll just hold off on returning to these websites until either company gives me a reason to.

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