You’ve been thinking about your new business idea for a while, and you’ve decided that it’s an something you want to pursue further. You created some buyer personas, and you think you’re on the right track, correctly defining your target market (If you haven’t defined your target market, we recommend this quick guide from Inc.) However, you need to know more about your target audience. Here are the five questions you need to ask yourself in these beginning stages:
1. What problem will my company be solving? Plain and simple, why will people care about your product? The answer to this question is the core of your entire business, and without it, your business will lack the focus it needs to succeed.
2.What (if at all) will my ideal customer be willing to pay? In other words, is this an extremely important issue for your target market? How much does it matter to them, and what is driving them to actively seek a solution? Creating a product with a freemium model (A free version, as well as a premium version with more features) is a strategy many companies, like Spotify and Buffer, utilize to prove their worth to their customers and build trust (something we’ll discuss later in this post.)
3.What makes my product different? If your new company doesn’t already have a direct competitor, they will soon enough. How will your company stand out from the pack? Determining this in the early stages may help save some time later on, but it should also be noted that this might also need to evolve as your niche grows. It’s important to align your unique selling proposition with your brand and marketing efforts.
4.How will I find my ideal customer? Or, how will I make it easy for them to find my product? If you create a great product, but nobody know about it, all of your hard work will be for naught. For example, if your target demographic is millennials, you’ll need to be extremely active on social media. It will pay off to do the research on which channel will be best for your business. Your marketing efforts should be closely monitored to ensure you are spending your budget in the right ways.
5.How will you support your target market(s)? The goal is to create long-lasting brand advocates, not one time buyers. Are you putting in the extra time to provide superior value? A great way to do this is through offering support via social media, and/or creating and implementing a significant content marketing strategy. Continuing to build up trust (whether it be online or in-person) will lay the groundwork for possible expansion in the future. As a small business, you may be able to manage sending personalized notes, but this will get difficult as your customer base expands.
Over time, the needs and wants of your target market (as well as their interests and problems) will evolve. For your company to succeed, you will always need to be ready to shift your strategy, making it essential to always keep these questions in mind.
How has your company’s target market changed? Let us know in the comments below.