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Why Your Small Business Is Not Getting Any Sales. Part 3: Target Audience

6/16/2015

13 Comments

 
Defining your target audience can be one of the most difficult things to do when you're building your business, but it can also be the most detrimental thing to your business if you don't.  One of the most common mistakes new business owners make is not knowing who their target audience is or the fear of excluding people.  I promise you, you will work twice as hard at what you do & come up with lesser results if you do not narrow down your target audience & gear your marketing & advertising strategies towards them.  I am going to outline some pointers you will need to know on how to define whom your target audience is.
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WHO?  Ask yourself, "Who is my ideal customer?"  Put yourself inside their head.  If you were searching for your product, what would you be looking for?  What words would you use to search for what you make/provide (this is also a good rule of thumb for SEO)?  What would your interests be?  What would make you buy your product?  What is your ideal customers average income?  Do they shop high end?  Retail?  Department store? 

WHERE? Where does your ideal customer live?  Are they in a particular city, state, country, countries, or can you cater to them worldwide?  Do they live in upscale areas or is your item/ service something more for money saving middle classer's on a budget?  Do you offer extremely discounted items that would help with the lesser fortunate?  If so, where are they located geographically?  Define your WHERE.

AGE?  How old is your target audience?  This one is probably the trickiest one.  I'm guilty of this when I first started out.  I wanted to appeal to everyone, BUT you're not going to, so realize that now.  If you have a unique product & you market it right- you don't have to appeal to everyone to be successful.  Just stay focused.  Take myself, for example.  Sure there are 17-21 year olds having babies and going to baby showers, but do they have jobs or are they still in school?  Are they more likely to buy my unique, handmade (in the USA) product or are they more likely to run by the nearest Wal-Mart & grab a cheap-o pack of baby bodysuits, most likely made in a sweatshop in China?  You probably guessed Wal-Mart & for most you're probably right.  Therefore, my target audience starts at 23. 

My business is an online based business so I rely on customers that are savvy with the internet.  Sure, there are many 50?'s and up that are amazing with their internet navigation & may even be more social media literate than myself, BUT chances are, where my baby and maternity items are concerned, my target audience cuts off at around 50.  My crop top & tank top apparel probably cuts off around age 40. 

GENDER?  This one can be super easy for some & some not.  Take jewelry, for example.  As a person that doesn't make/sell jewelry I would automatically assume that the target audience were female - and IT IS.  Where business owners get lost is thinking they should appeal to men as well because, "What if they're shopping for a gift for their wife or girlfriend?"  We aren't talking "what ifs" in defining your target audience, we are talking "most likelys".  Chances are if a female wants a certain ring, necklace, bracelet, etc.- she's already got it picked out for herself & she'll send her guy in that direction.  I had a hard time with this because I do make Men's t shirts as well, but after tracking my analytics & stats, I was able to see that women are most likely to buy for their men than men were to actually be searching.

Remember:  LESS>MORE.  Less is more & it couldn't be truer in defining your target audience and figuring out where to gear your advertisements.  Being in front of 5 of the right people is better than being in front of 100 of the wrong people.

How did you define your target audience?  Tell us in the comments below!

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Keywords:  Small business, Etsy, Online business, Handmade, How to be a successful small business, Defining your target audience, Knowing your target market, advertising, marketing, Liv & Co.
13 Comments
Gina link
6/16/2015 02:45:54 am

Great post! Very good information for new and established businesses. We sometimes overlook this and think we will cater to everyone but we really do need to find that specific group that is ideal for our products. Thanks :)

Reply
Livia H link
6/17/2015 07:28:54 am

Gina,

Thank you so much for stopping by! I'm glad you enjoyed it!

Best,
Liv

Reply
Julie H link
6/26/2015 02:50:34 am

Thanks for this! It really helped me with my first Facebook ad! Curious though - Facebook is telling me "your ad is performing better than 80%..blah blah." What do YOU define as performing well? Cost per like/objective? Reach?

Reply
Livia H link
6/26/2015 04:47:25 am

Julie, What type of ad did you create? Did you use your Ads Manager or did you use the "Boost Post" feature? If it says it's doing better than 80% of your other posts, etc. it sounds like the "Boost Post" feature.

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Julie link
6/26/2015 08:42:27 am

No it was the ad manager - my ad is ending tonight, and I got a message from saying that it was performing better than 80% of similar ads on Facebook. I was thinking that it was completely sucking (LOL) so I was curious how you determine an ad is performing well.

Livia H link
6/26/2015 11:53:46 am

Ok. A couple questions: 1.) Why is your ad ending tonight? You want your ad to run for a long period of time. Mine are set to run indefinitely unless I stop it on my own. Facebook cannot properly gauge how your ad is doing by running for a couple days or even a week. It takes time to get your ad circulating and served to the proper audience. Normally the "Boost Post" option is the short term option, but if you talk to a Facebook representative they'll tell you they don't necessarily recommend the "Boost Post" option if you are trying to get page likes or sales. It's really only good for getting likes on that particular post, which is really not very useful, in my opinion. I think every small business owner can agree we want what will drive sales. 2.) This is more of an answer than a question, but with Ads Manager on Facebook they'll give your ada score for their relevancy. After you've narrowed down your target audience, added your photo(s), etc. & your ad has been running long enough for Facebook to gauge how effective it is amongst the audience you've targeted, there will be a score in your Ads Manager. I've pretty much perfected all of mine and they are a 9/10. They are very relevant and receive a high amount of clicks in ratio to impressions. That would be the number I'd be looking for from you to gauge if you formed your ad properly and effectively or not without looking at it. For instance, one of my older ads when I first started out was a 7/10. I knew it had to be tweaked, and over time, I did. Eventually I wiped that one and made an entirely different set of ads. 1 for likes on my page & 3 geared towards 3 different categories on my website. Do you have a score #?

Julie link
6/26/2015 01:57:25 pm

Wow thanks for the great reply! It's ending mostly because this was the first one and I was too nervous to sink a whack of money into it without knowing a lot about the process.

I ran it for 4 days and am tempted to continue like you suggested!

My relevance score the first day was an 8, but something in the photo was bugging me so I edited it and it went to 9. I will look into the clicks per impressions ratio.

Thanks for your insight, this has been helpful!

Reply
Gina link
6/27/2015 12:19:14 am

These are great tips Livia! Facebook ads can get crazy Julie and sometimes it feels like a game. It takes time and lots of tweaking. As mentioned in the article post, knowing your target market really helps to narrow down your ads. I've had mine at 7 and 8 but I don't think I've ever had them at a 9. Gotta get to more tweaking I guess. :)

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