The second step in identifying your ideal customer, your target market, is to look at the demographics of your top 10 customers.
Watch the video for an explanation.
As per the previous module, if you know your existing customers really well, this should take about 15-30 minutes. Otherwise, if you need to look at your customer data to obtain some of the relevant information, allow longer complete this step.
If you haven’t already done so, you can download the Course workbook in the Materials section.
Note: you need to watch the video to be able to mark this module as complete and progress to the next module.
Video Transcript
Okay. So you’ve gone through the process and identified your 10 or a number of your existing ideal customers, or sorry, your most profitable customers that you love working with. And we’re at the next step, which is this one’s a relatively easy one.
This is based on the demographics of your customers.
So think about those people that you have identified in the previous step, and simply circle or put in the details of what you know in this table here.
So if you know their age, if most of the people in your 10 that you’ve identified, are aged between 25 to 50, just pop that in there. You can hand write this of course.
You may have two brackets. You may have an age group that’s 25 to 35, and you may have an age group that’s 50 to 60. And it’s okay to have two different age groups if that’s what comes through in the data from the ten people above.
The location again, similarly, just put in the location, I’ll type an example, Albury Wodonga, in here. I’ll also put Wangaratta. Just put the main locations that you will be your ideal customers in the 10 above are located.
Gender, you can put in there or not, up to you.
Income, again, if you know that detail of these 10 customers up here, pop that in there. And again, you may have more than the one range. So your 20 to 25, we had 25 to 35 year olds, may be earning, $40 to $50K, and then 50 to 60 year olds maybe earning $80+k as an example. Align those two groups.
Education, if education is going to be an important aspect who your ideal customers are, then again, look at the 10 above and put in the types of education that you see in that list of 10.
So, working through this group and popping in the details that are relevant to these 10 or less people that you’ve identified as your most profitable customer that you love working with.
If there are any other demographic style details that you know, that come through when you look at that list of people, just pop them in this other space as well.
So that is the next step in this program, looking at the demographic characteristics of those customers. The next stage will be looking at the psychographics.
