Author: Kurt Schauer
Many customers are easier to reach with precisely tailored content that is customized to them. But how can you find out what needs your customers have and how you can best reach them? A comprehensive target group analysis can answer many questions in advance and make access to customers considerably easier.
In this article, you will learn what makes a good target group analysis and in which steps it can be carried out. You will learn how to obtain the information you need about your customers and how you can use it in a targeted way.
What is a target audience analysis?
The goal of this analysis is to gain a deeper understanding of the target audience. Without precise knowledge of the target audience’s purchasing behavior and needs, it is difficult to convey the right content and reach potential customers. Furthermore, target audience analysis is an ongoing process that should be repeated as needed.
Why is target group analysis so important?
A target group is characterized by specific features such as concrete needs, preferences, or even moral concepts. Target group analysis, as part of market analysis, makes it possible to get to know customers better.
With a sound knowledge of the target group, it becomes easier to tailor content specifically to them. By creating precisely fitting content, attractive added value can be offered to the customer. In this way, customers can be reached more effectively and trust can be built. A thorough target group analysis can therefore have a long-term positive impact on business success, as it creates a stable customer relationship.
The process of a target audience analysis
The target audience analysis generally proceeds in the following 5 steps:
The goal of the analysis is to define the customer group as precisely as possible. The following aspects or characteristics can be considered:
- Age
- Gender
- Marital status
- Education level
- Income level
- Occupation
- Place of residence/Region
- Language
In the business-to-business sector, company size, industry, and finances play a central role. The more characteristics are included, the more accurately the target group can ultimately be described.
When it comes to characterization, socio-economic and demographic factors are particularly decisive. In addition to character traits, these include the preferences and values of your potential customers. How do they spend their free time, what clothing style do they prefer? What exactly occupies your customers and why? Are they more traditionally or modernly oriented? Do they have a pronounced environmental awareness or not?
The first part of the target audience analysis covers general characteristics. In this step, the focus increasingly shifts to the actual consumption behavior of the target audience. The following questions, for example, play a role:
- Through which channels does your target audience purchase products?
- Which products exactly do they buy?
- How much money are they willing to spend?
- What might influence their purchasing decision? (e.g., warranty, testimonials, quality)
- When does the target audience make purchases? Is this possibly seasonal?
- Are certain brands preferred?
- What is the household income?
The most important question is how you can best obtain the information needed for a comprehensive analysis. Sufficient data for an evaluation is not always already available. It is also possible that you initially start from a hypothetical target group. Over time, you will receive additional information so that you can gradually complete the picture of your target group. It is particularly important to update this analysis regularly. The digital world is in a constant state of change, which can also change customer behavior.
After an extensive definition and characterization of the target group, it is possible to create a profile of the buyer persona (customer). In principle, this is the prototype of your clientele. From the information gathered, an ideal image of your customers emerges. You can now align your company strategy with this ideal image, including advertising measures and communication. You know what your customers value and through which sales channels you can best reach them.
An example of a target audience analysis
A 70-year-old retiree surfs Facebook and sees an advertisement for backpacking backpacks. The retiree takes an all-inclusive holiday to Mallorca every year and has little interest in backpacking. She prefers a handbag over a large backpack. The probability that she will be interested in one of the backpacks is therefore almost zero. Since the 70-year-old retiree is not part of the target audience, the investment in this Facebook advertisement was at least partially wasted money.
A better target audience analysis could have revealed the following:
- Men and women between 18 and 35 years old
- low to medium income
- above-average education level
- active, sports enthusiasts, travel lovers, adventurous
- interest in other cultures
A more precise profile:
Julia is 23 years old and a student. During semester breaks, she enjoys traveling to distant countries with a backpack; last year she was in Thailand. She loves trekking and is very interested in Southeast Asian culture. Now she is looking for a robust backpack for her next trip.
Conclusion
With a thorough analysis of your target audience, you can work in a more focused and goal-oriented manner. By deeply understanding your target audience, you can specifically tailor your content to the needs of your potential customers, thereby building a stronger relationship with your buyer persona. If you know the wishes and needs of your target audience, you can better address them. While a target audience analysis requires time, the effort is worthwhile and can significantly contribute to the long-term success of your company.
Do you have questions?
Hubertus von Kolkow
Head of Brand Consulting/Strategy
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