As a Retailer if you understand who your customers are and how they behave then you can tailor your product/services options and set relevant promotions that will appeal to them resulting in more sales and profits and also beating your competition!
Who is my customer?
- If you are a new business, you may start with ‘who would you like it to be’?
- If you are an existing business then your knowledge will come from observation, conversation and sales reports.
- If you are online you may have different insights because your can get more data on their behaviour.
What is a Target Market?
- They are a group of customers who have attributes in common – these may easily be described demographically and/or psychographically.
- Most retailers have more than one target market and knowing the common factors are important;
- Demographics – Age, Gender, Income, Education, Occupation, Location, Marital status, Children etc
- Psychographics – Interests (Books/shows/podcasts etc), Purchase Habits, Hobbies/sport/entertainment, social life, food/drink preferences, travel, how do they spend their time? (work/relaxation/weekends/nights etc), personality etc
- VALS – Values, Attitudes, Lifestyle – What values do they hold that may be important to your retail offer ie; sustainability, family oriented, community minded, convenience, Browsers or Time-Poor?
VALS resource http://www.strategicbusinessinsights.com/vals/ustypes.shtml for additional detail.
- Personas – Build a description of each target market with the above factors in mind and give them a name (Jane, Bill, Sara etc – may help you visualise them!)
Gathering information on your Target Market
- Research Data - Councils, Shopping Centres or Australian Bureau of Statistics all have data on the main demographics of your retail trading area.
- Observation – Watch and describe the customers in both physical and online stores, as well as ones entering other stores nearby that you may like to attract.
- Customer Service – Gather key details from conversations and comments through face to face, social media, live chat online, emails/texts, database program or a formal survey.
Relevance to Promotions
- How do they like to receive information? – Word of Mouth, Emails, Newsletters, Social Media (which platforms), text, advertising etc
- Ask them what they want more/less of – New products, types of products/brands, sales, product hints, demonstrations so you can tailor your communications.
Relevance to Product/Service
- What product/services that you have (or do not have) that they want?
- What brands do they like?
- What quality/price do they prefer?
- Do they require additional services (product knowledge, delivery, customisation etc)