A hundred different factors can affect your online advertising. However, any successful advertising campaign starts with an understanding and defining your target customers. Unless you know who your customers are and which customers your advertising to, your marketing budget will only go to waste. Not to mention, a lot of studies and surveys have shown that even customers like to pay attention to ads that they can relate to. A survey in 2016 showed that 71% of customers are okay with ads that companies personalize for them.
Brief Case Study of Properly Defining Your Target Audience
One of our recent partners, a hair stylist, was advertising a special promotion on Facebook and Instagram. She was offering a free hair service and up-selling her customers with a higher ticket item once visited the salon. She was advertising to women 18 and up, 10 miles from her business location which is a huge, broad, audience.
She was spending about $35 per customer who made an appointment and out of those who made the appointments, only 60% of them actually came in to the salon. After she hired us, we helped her define her target customers, updated her ads to speak directly to those target customers, and used our notification system. Now, the cost per customer who made an appointment dropped from $35 to an average of $5 per appointment and increased the actual visits to 80%.
Successful personalized advertising is a result of knowing your target customers. Here is how you can define your customers for successful online advertising.
Tips to Define Your Target Customers
Use the Right Tools
The first thing you want to make sure is that you have the right tools with you to help you identify your customers. Take Facebook Audience Insights for example. It is the perfect tool for any company that wants to know the preferences, interests, and demographics of its target audience before launching an advertising campaign. There is a lot for you to learn from this tool and apply in your advertising strategies.
Here is how Facebook helps you identify your target customers. Let’s suppose you want to sell sporty wristwatches in Tampa, Florida. You can use Facebook Audience Insights to first select Tampa as your target location. Secondly, you can select “interests” as a criterion for your target audience. In the “interests” section, you can select “wristwatches”, “sports”, and “athletics”, competing brands, etc. as target attributes. The tool will automatically put your target audience in various categories based on their genders, age groups, interest, etc.
Now, when you start creating your messages in the ads, you will use this information to speak directly to that specific target customer.
Understand Your Existing Customers
When it comes to defining your target audience, there is nothing more useful than the data of your existing customers. If you analyze the data of your existing customers and find out that most of them are between the ages of 25 and 34, they are mainly white Americans, and they usually have Android phones, etc. you will have a base on which you can build your advertising campaigns within Facebook Audience Insights.
You have modern CRM softwares to help you know your existing customers in such great detail. If you aren’t using CRM softwares, you can also use online forms, on-site surveys, mobile apps, etc. to gather information about your existing customers.
Get Behavioral Data of Your Customers
Knowing the gender, age, ethnicity, etc. definitely helps you give direction to your marketing. However, that’s just basic information about a huge group of people. You need to know more to personalize your advertising for a specific group. You can assume that Americans like pie but do all of them like it? In short, you need to get some behavioral data of each individual in your target market.
When collecting behavioral data, you can collect information such as:
- Their values
- Their favorite destinations
- Their current favorite brands
- Their major interests
- Their favorite social networks
- Their favorite pages, websites, etc.
The more you know about them the better it will be for your online advertising campaigns and the easier it will be to capture their attention as they mindlessly scroll through their Facebook and Instagram feeds.
Know Your Product Like the Back of Your Hand
How you target your audience depends heavily on how much you know and love your product. Of course, you know you sell pens if you are selling pens. In fact, everyone knows that. However, knowing your product means having a grasp on its benefits and connecting them to the features. Knowing your target customers will help you craft the perfect message, image, video that will help deliver the benefits and features the proper way.
Make Final Considerations
This part is the most crucial when defining your target audience. Just because you know your audience at this point does not mean you can go ahead and launch a full-on online advertising campaign. The final considerations are integral to your success.
A few questions to find answers to include:
- Are there enough people in my target market to help me expand my business?
- What price should I set so I can hit my profit margins even if my market is only a niche?
- Are there any competitors that are offering the same product/service?
- What do my customers like the most about my competitor’s product?
- How can I make my product different?
- What can I offer to make my customers switch their loyalties?
Once you have the answers to these questions, you are ready to create your perfect ad and launch your advertising campaign online.
As basic and understood as it sounds, many businesses end up launching their products without defining their target customers and just spray a generic message all over the internet, wasting hundreds of thousands of dollars. Today, you have hundreds of tools available to know your customer. That’s something that was not available to businesses in the past. Even your website analytics can help you know your target audience quite well. In the end, avoid spending too much time refining your product and making it perfect. Launch the product and let the people give you their honest feedback. You can then use their feedback to improve your product and ads further.
Our Shameless Plug
We offer an amazingly economical yet highly effective online advertising service for most local businesses. This includes working with local businesses to define target customers, designing and creating the online advertisement funnel, collection of customer data, and continuous management of these campaigns while bringing back customers over and over again, month after month.
If you’re interested, please check out or demo!