This does not imply that you're skipping or excluding potential customers, but it rather means that you are targeting a specific market which can be easier.
Some wiser steps can save you a lot of money and efforts, like that of follows:
1. Observe your current customer base
Who are your customers? Why do they choose to buy services or products from you? Map out the common pattern and common interests of them. Following the same pattern, you can target more customers and experience a very high conversion rate.
For example, let's assume you own an event decoration service. Your current customers are 40 to 55 years old, and a maximum of them are women. Also, many of your customers work in religious places, and they book you for their periodic religious events.
This means that if you target an older age group of women whose interest criteria are religious, you may experience a very high conversion rate.
2. Keep a check on the competition
Draw out a list of your current competitors and observe them. What market are your competitors targeting? What is the pattern of their customers?
Don't go after their market strategy, but you may find a new niche that you are overlooking for long.
3. Analyze your products and services.
Have a look at your products and services. Carve out your main offer and list its benefits.
For example, let's assume you are a professional digital marketer. You can help others to grow their business through your own unique approach. Who do you think that you want to avail of these services? Very large companies may already be interested in hiring a full-time team of professionals, so who should be your target market?
It can be the startups or small businesses who are looking forward to the expansion.
4. Select your demographics
Which type of customers is most likely to buy your services? Consider them through the following factors:
- Ethnic background
- Education Level
- Income level
- Marital status
5. Don't miss out on the psycho-graphics:
Consider the following factors:
Determine what kind of customers on the aforementioned factors might be actually interested in opting for your products and services.
Verdict - Make a decision
Defining your market is tough, but once you are done with this, it's easier to find resources to target it. Make a decision - What is your target market? And start to focus on it. Also, check out the local SEO Tips for small business.
How to define a target market for your small business in Toronto or other cities in Canada?