How to identify your target audience in 4 easy steps

By The LDN Team | 7 March 2017
How to identify your target audience in 4 easy steps
Our four step guide to identifying your target audience and segmenting your campaigns accordingly.

Who is your target audience? If you answered “everyone”, think again. Creating a letterbox campaign for everyone is not smart business. Why waste valuable time and money trying to sell to people who are not interested in your product, and probably never will be?

Whether you’re selling gourmet takeaways or pet grooming services, it pays to take the time to identify your target audience. 

Understanding who your customers are, and where to reach them, means you can be more focused and more effective in your marketing campaigns and get a greater return on investment. 

Follow these easy steps to identify your target customer ready for your next letterbox campaign: 

Step 1. Understand what needs your business answers

Every business exists to solve a customer need or problem. So, before you can identify your target audience, you need to understand what these needs are. For example, a real estate agent answers the homeowner's need to sell their house for the best price, with as little stress as possible. A wedding photographer solves the bride's desire to have lasting memories of their big day (and that dress). 

Once you have defined why customers need you, it's time to zone in on the people most likely to have these needs.  

Step 2. Segment your audience

Segmentation is the process of narrowing down the population to an ideal group, based on various factors.

Start by identifying your broad market – for example, if you have a dog grooming salon, you operate in a market of dog owners. 

Next, choose and apply the parameters to segment your audience. There are four main ways you can find your target audience: 
  • Geographic targeting: Define your audience based on the location of their home or work, their proximity to shops (including your store locations), driving times and distances.
  •  Census variables: Segment your audience according to key census data, such as age, income, family status, occupation, and cultural background.
  •  Household spending: Group consumers according to how much they spend on items, such as groceries, travel and luxury items, or classify them based on disposable income. 
  • Household psychographics: Separate consumers based on their attitude towards, or intent to purchase, a specific product, service or brand. 
Why stop at one method? For the best results, combine a few different ways to create your segments. 

Step 3. Create customer personas

Armed with your segments, you can start to paint a picture of your customers. This is known as a "buyer persona", and is essentially a fictional character that represents a group of real customers. Trust us; it's worth the effort – research shows that creating buyer personas can deliver 73% higher conversions. 

Start with the basics: age, gender, family, occupation, income and education. Then, get more detailed and define them in as many relevant ways as possible, including their behaviours, attitudes, values, and goals. 

For example, if you own a takeaway business, you might describe their eating habits, which sports they watch, how they spend their evenings, whether they are health conscious, and so on – each of these points influences when, how, why and what they order. 

If this sounds complicated, don’t worry – LDN offers demographic profiling to help you take your segmentation information and define your audience in real terms. 

Step 4. Put your personas to work

Once you have your customer profiles, use them to create compelling offers and target the right letterboxes. You might start by creating one flyer campaign for the persona you think will get the best response, then another targeted to a different persona.  

What next?

Taking the time to define your target audience, understand them and build personas is the first important step to creating a brilliant letterbox campaign. 

Remember, you are not trying to appeal to everyone – the best results come from targeting one particular type of customer at a time. 

Once you have identified your target audience, you are ready to map your distribution area. Learn how mapping works in our April newsletter or speak to one of our agents today on 1300 089 467.  

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