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Target group analysis – definition, advantages and useful tips

Author: Kurt Schauer

Many customers can be addressed more easily with content that is tailored to them. But how can you find out what your customers' needs are and how you can best reach them? A comprehensive target group analysis can answer many questions in advance and make access to customers much easier.

In this article, you will learn what constitutes a good target group analysis and the steps involved in carrying it out. You will learn how to obtain the information you need about your customers and how to use it in a targeted manner.

What is a target group analysis?

The goal of this analysis is to gain a deeper understanding of the target group. Without precise knowledge of the target group's purchasing behavior and needs, it is difficult to convey the right content and reach potential customers. In addition, target group analysis is an ongoing process that should be repeated as needed.

Why is target group analysis so important?

A target group is characterized by characteristic features such as specific needs, preferences or moral ideas. Target group analysis, as part of market analysis, makes it possible to get to know customers better.

With a thorough knowledge of the target group, it becomes easier to tailor the content to them. By creating tailor-made content, the customer can be offered attractive added value. In this way, customers can be reached more easily and trust can be built. A thorough target group analysis can therefore have a positive effect on the company's success in the long term, as it creates a stable customer relationship.

The process of a target group analysis

The analysis of the target group basically takes place in the following 5 steps:

definition of the target group

The aim of the analysis is to define the customer group as precisely as possible. The following aspects or characteristics can be taken into account:

Age
Gender
marital status
Level of education
income level
Job
place of residence/region
Language

In the business-to-business sector, company size, industry and finances play a central role. The more characteristics that are included, the more precisely the target group can ultimately be described.

characterization of the target group

Socioeconomic and demographic factors are particularly important when characterizing. In addition to personality traits, these include the preferences and values of your potential customers. How do they spend their free time, what style of clothing do they prefer? What exactly do your customers care about and why? Are they more traditional or modern? Do they have a strong environmental awareness or not?

Determine the purchasing behavior of the target group

The first part of the target group analysis includes general characteristics. In this step, the focus is increasingly on the actual consumer behavior of the target group. The following questions, for example, play a role:

Through which channels does your target group purchase products?
What products exactly does she buy?
How much money is she willing to spend?
What could motivate them to make a purchase decision? (e.g. guarantee, testimonials, quality)
When does the target group shop? Is this perhaps seasonal?
Are certain brands preferred?
How much is the household income?

review of the target group analysis

The most important question is how best to obtain the information you need for a comprehensive analysis. There is not always enough data available for an evaluation. It may also be that you start with 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 constantly changing, which can also change customer behavior.

Creating user profiles

After a comprehensive definition and characterization of the target group, it is possible to create a profile of the buyer persona (customer). This is essentially the prototype of your customers. The information collected creates an ideal image of your customers. You can then align your company strategy, including advertising measures and communication, with this ideal image. You know what is important to your customers and which sales channels you can best use to reach them.

Possible methods for target group analysis

There are different ways to analyze and describe the target audience in detail. Some of these methods are explained in more detail below.

The survey

A well-designed survey offers two main advantages:

You will receive a lot of information
The effort is low

In addition, a survey can be conducted anonymously, which allows respondents to give honest answers without inhibitions. It is important that the questions are asked as specifically as possible. It has proven useful to allow answers on a scale of 1 to 10, for example. Vaguely worded questions lead to inaccurate answers and make the results less useful. It is also crucial to survey a sufficient number of respondents. A guideline here is 500 to 1000 participants.

Interviews

Interviews are much more complex to conduct than surveys, and the anonymity that comes with surveys is not available. However, interviews allow you to go into more detail with the person you are interviewing. This helps you better understand what really concerns your target group. For smaller companies, it is unrealistic to conduct interviews with 500 to 1000 people. However, due to the high quality of the results, it is not a problem to focus on a smaller group of people. Although interviews are not as representative as surveys, they do offer the opportunity to gain additional information through more in-depth questions that can be easily supplemented with the results from surveys.

Online research

This method is much faster and cheaper than the two previously mentioned. However, please note that information on the Internet is not always reliable. Possible research tools include Statista or the website of the Federal Statistical Office. If you have your own website, Google Analytics is also a good tool. This is a tracking tool that provides you with information about the gender and age of visitors to your site. You also receive data on search terms used and how users find your site.

An example of a target group analysis

A 70-year-old pensioner is surfing on Facebook and sees an advert for backpacking backpacks. The pensioner goes on a package holiday to Mallorca every year and has little interest in backpacking. She prefers a handbag to a large backpack. The likelihood that she would be interested in one of the backpacks is therefore almost zero. Since the 70-year-old pensioner is not part of the target group, investing in this ad on Facebook was at least partly a waste of money.

A better target group analysis could have revealed the following:

Men and women between 18 and 35 years
low to middle income
above-average level of education
active, sports enthusiast, travel enthusiast, adventurous
interest in other cultures

A more detailed profile:
Julia is 23 years old and a student. During the semester break she likes to travel to faraway 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 sturdy backpack for her next trip.

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Already knew?

KAOS offers target group workshops. Together with you, we analyze your (dream) customers and their needs and wishes so that you can present your product or service in the best possible way. If you are interested, we look forward to hearing from you! Please contact us - we look forward to your inquiry.

Conclusion

With a thorough analysis of your target group, you can work in a more focused and goal-oriented manner. By understanding your target group in depth, you can tailor your content to the needs of your potential customers and build a stronger relationship with the buyer persona. If you know the wishes and needs of your target group, you can respond to them better. A target group analysis takes time, but the effort is worth it and can make a decisive contribution to the long-term success of your company.

Any questions?

Hubertus von Kolkow

Head of Brand Consulting/Strategy