Businesses are flourishing with the advancement in the digital era. Digitalization has helped the online stores to gain millions of visitors as well as potential customers. But sometimes, it might happen that the customers do not complete a conversion cycle. The reason behind it is the undefined audience. If the online stores have properly defined target markets, then there is a higher chance of improving the ROI – (Return On Investment) of the online stores. But how do we define the target market? Defining the target can be one of the most essential tasks of marketers.
It is considered as the foundation of all elements of your marketing strategy, from how you develop and name your products or services right to the marketing channels you use to promote them. The biggest mistake most of the online marketers make is to consider each and every online visitor as their potential customer. Your target audience is not “everyone”. You need to understand the market deeply and then define the target groups to identify and understand the particular niche.
#1 You Must Understand The Importance Of Online Store Target Market:
One of the most important or primary concerns that online stores have to face is the influx of irrelevant traffic to their website. It has been observed that the use of the latest tools and technology has helped businesses to drive innumerable traffic to their online stores. But most of the time, this influx of traffic is not worth it. Irrelevant traffic is not your potential customer. They just stay on the websites for a few seconds or minutes and then do not return. However, you must understand that the conversion rates from such traffic are negligible. The marketers of online stores must define your target market that can assist your business strategies in many ways. It will help you in saving up your marketing energy that was previously being utilized to reach a bigger, but less interested audience. As a result, you can generate the same revenue with lesser resources if you know what your target market is looking for.
#2 Knowing Your Target Market/ Audience:
While you are focusing on developing your key audience, you need to have an understanding of both demographics and psychographics of your target market. Demographics generally refer to statistical factors like age, gender, and occupation that affect buying decisions. If you consider the psychographics factor in-depth then you would understand how people think when they make a purchase. Some examples of psychographics include:
- Personal values
- Preference and personal taste
- Interests and hobbies
- Ideologies about purchasing and behavior
Each of these factors plays a critical role in how people make buying decisions so figure out how you can tap into these factors when developing your ad campaigns.
#3 Customer Segmentation
Now that you know about your demographics and psychographics, then the next thing is to segregate it into various categories. It is best advised to categorize your online store’s target audience. This helps online stores to better cater users as well as rightly mold promotional messages.
You can segment your target customers into various categories such as
- high spenders
- cart abandoners
- coupon lovers
- thrifty shoppers
- newsletter readers / ebook subscribers
- registered browsers (leads)
- special segments by location
- indecisive shoppers
- idle (inactive) customers
- curious browsers
- loyal customers
- the trendy customers
Customer segmentation is entirely based on the behavior of the customers. By segmenting, you categorize your customers into smaller groups of people that have something in common and that makes thinking of offers and calls to action easier. Being relevant and responding adequately to their actions is the basis of personalized marketing. It starts with acknowledging the differences in your customers’ behavior and working with them.
#4 You Must Evaluate Your Market Segments
Now that marketers have real insights into who they plan to sell to, marketers need to verify that your target market is worth serving.
- Do You think you have enough audience in your target market to sustain the business?
- Is your target market potential enough to purchase the products? – Analyzing the purchasing capacity of the target market.
- Will the current target audience will become your regular customer?
To get the answers to these questions, you need to create real-life tests where you actually engage with your prospective target market.
#5 Defining The Target Market With Customer Feedbacks And Surveys:
Most of the marketers of online stores claim that practicing surveys and recording customer feedback is the best way to get insights and understand the overall traffic. By the answers you get through the online surveys will help you in identifying your target market and ignoring the rest. Data generated from surveys and customer feedback can be graphically displayed to see where your online store or business stands and which segment can be improved.
By now you might have understood that it is very essential to understand the target market with relevant content, messaging, and ads. As the depth of the audience will grow, you would be able to see higher conversion rates and better ROI. In simple words, it’s all about narrowing your focus while expanding your reach.