Understanding your customers is key to the success of a business. It is an entrepreneurs responsibility to learn his/her target customers well, send effective messages to the customers and effectively educate them on your products and services. The following 5 things are important to learn about your target customers.
What are they doing instead of using your products and services and why? It is important to understand why your potential customers buy/use other goods and services that they currently buy/use. There must be something different in other products/services that can better meet the customers needs, or at least the customer thinks so. Through the learning of these factors that make a difference, you can gain better understanding of changing trend of customers needs and demands.
What are the reasons they buy? There must be something that hits them right and convinces them to buy a certain product or service when there are a variety of competing products. It can be price, convenience, style, experience, etc. But, some features tend to be more important to consumers than others. Find these factors and develop them to a higher level in your products or services. This could help your business stand out and acquire more customers.
What do they think of your goods or services? What you think of your own products and services does not necessarily reflect the true opinions of the customers. An entrepreneur should always understand his/her customers feedback. It is also easier than ever to get with websites like Yelp or online surveys that effect your target market. Before you launch, try to get as much feedback as you can from potential customers to make sure you meet their needs.
Learn their characteristics and habits: This is important because your customers working habits and working policies affect your business. For example, a San Jose massage business targets local computer engineers who have a high stress job. By learning their working habits, the business owner knows that it will be more efficient to do online marketing on certain sites which those engineers often visit. Also, the business owner can learn different companies welfare programs, and apply those programs to his/her discount campaign.
Know their buying channels: People tend to make purchases in the way they feel most comfortable. As closing/conversion is a very important part in the business process, an entrepreneur should spare no efforts to find out his/her target customers comfortable buying channels. These channels could be in-store, online, referral, free sample trial, group purchase, etc. The best channels are generally easy to find based on where existing companies already make their sales.
Learning about your customers is crucial. A business plan is a very effective way to analyze the current market, find out customers likes and dislikes, and compare your products/services with those of your competitors. With that information, you can more easily build a startup strategy that will meet your customers needs.
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