Records from the Australian Bureau of Statistics revealed that the total household spending in Australia reached AUD$279 million within the first quarter of 2022, which denotes a sustained expansion of economics all over the country.
Moreover, increased consumer spending also means people’s confidence and enjoyment in the financial prospects, goods, and services they purchase, increasing business sales.
In another survey, the Australian Bureau of Statistics shows a 4.3% increase in the spending behavior of consumers from last year during the pandemic season, which means that despite crises, people display a higher level of optimism.
However, despite the surge of consumers spending their household income on many goods and services all over the country, many businesses today are still struggling to find the ideal customers to buy and consume their products and services regularly.
Identifying ideal customers can be a pain if you haven’t established a system that produces quality results. At Beyond Points and other marketing agencies, they create clear marketing solutions geared toward your business growth by helping you attract people and convert them into paying customers.
Now, you may think that everyone is an ideal customer for your product or service. But the truth is, not all people will buy from you. So, how can you identify your ideal customers? Here are some ways:
1. Research And Know Your Market
Market research is probably the most common way to determine what type of person buys your products and services. It involves surveying your target market. A good survey should help you get the demographics of your chosen market.
You can also leverage buyer personas when doing market research. Buyer personas are fictional characters based on real-life buyers representing different types of customers in your market. Entrepreneur.com mentioned using buyer personas accounts for more than 90% of a company’s revenue.
For example, one persona might be a young male who lives alone with no children. Another could be a female who has three kids and works full time. These two personas would have different needs and wants. So, when designing your marketing materials, make sure you consider these differences.
2. Narrow Your Target To A Sustainable Group
The next step is to focus on a sustainable market group. In other words, you don’t want to waste your resources targeting too broad of a demographic. Instead, narrow your focus to a group of people you know will purchase your products or services because they need them.
Remember that not all demographics will buy your product. Thus, trying to convince someone who doesn’t intend to purchase will be a waste of resources. So, it only makes sense to spend all your efforts on converting a group of warm leads into a sustainable group of customers.
Warm leads are those who already show intentions to buy your products or services. They are those who follow your business on social media, subscribe to your email list, and maybe even ask about your product through customer inquiry.
Once you’ve identified this group, you must create a plan to establish a trusting customer relationship by inspiring confidence and delivering a good promise of results.
3. Analyze Recurring Consumer Behaviors
The next step is to understand consumer behaviors. What motivates them? What do they usually look for? Do they buy because they need something right now or because it’s a trend? Or do they purchase certain brands or items to save money? Knowing this information helps you design better marketing strategies.
For example, if you sell clothing online, you might notice that women tend to buy more clothes during the holiday season. It means you should create special offers for Christmas and other holidays. On the other hand, men might spend more money on water sports equipment during summer. This knowledge also lets you know which items to stock up on and which ones to order less frequently during which season.
4. Humanize Them By Understanding Their Pain Points
Once you have identified their behaviors, you need to figure out why they behave as they do by seeing them as humans. Why do they buy from certain companies but not others? Why do they buy once a year instead of every month?
When you already understand their motivations and pain points, you can combine the buyer persona technique to address your customers’ problems and develop new products and services to meet those needs.
Your ideal customers may even have similar pain points. For instance, if you sell pet food online, you might notice your customers complain about how expensive it is to feed their pets. Using a buyer persona, you can profile your target customer as someone with ‘hopes’ and ‘wishes’ to reduce their expenses on pet food.
So, you come up with a solution: a monthly subscription plan where you send them a box of high-quality dog food each month at a discounted rate or no delivery costs.
Ideal customers appreciate the value you put into your marketing efforts. Forbes confirmed this when they mentioned that a value-based marketing strategy translates value-driven efforts into tangible results. Customers are humans, and once they feel that you see them as that, you start to develop trust and loyalty in them.
5. Offer Them Solutions To Their Problems
Now that you know what makes your customers tick, you can offer them solutions. You can solve their problems by offering them discounts, free shipping, or other incentives.
In the above example, you offered your customers a discount so they’d buy more often. But you didn’t just give them any old discount. You gave them a discount on their monthly subscriptions because you wanted to encourage repeat purchases.
Once your customers start buying regularly and feel like they are getting a deal, they’ll keep coming back for more because they’re happy with your product or services and get the solution they need.
Finally, you need to turn your ideal customers into raving fans by giving them loyalty rewards such as exclusive deals and gift cards. Ideal customers, when treated well, spread the word about your business, resulting in increased traffic and sales.
The key to finding your ideal customer is to think outside the box. Don’t limit yourself to demographics or income levels. Instead, look beyond these traditional categories and focus on understanding your customers’ behaviors.
Once you’ve identified your ideal customers, you can begin developing marketing strategies to offer your products and services that appeal to them. Using the five steps outlined above, you’re sure to find your ideal customers and turn them into lifelong ones.