There’s one thing all successful businesses have in common — they know who their ideal customer is and have created their buyer persona.
Do you feel like your traffic or conversion is lower than what it should be or customers aren’t coming back for some reason?
Are you constantly investing in new customer acquisition but can’t seem to push your traffic through your marketing funnel?
The path to discovering your ideal customer can be daunting. However, a deep understanding of your customer’s wants and needs will help you attract and retain them.
In this article, we’ll discuss what it means to define your ideal customer and how to create that buyer persona.
Why do you need to define your ideal customer?
Who’s supposed to be your best and ideal customer anyway?
Your best and ideal customers have the following characteristics:
- spend more
- buy more frequently
- stay with you longer as a customer
- refer new customers
The bottom line? You need to know who you’ll be talking to before you try to sell to them.
Develop a Hyper-Focused Strategy
When you know who your ideal customer is, you identify critical information about them that can help you curate your messaging.
- What triggers them to start looking?
- Why is my customer interested in my product?
- How do they typically buy products like this?
- What problem am I solving for them by offering this product?
The more questions you answer, the easier it becomes to create a relevant, hyper-focused strategy that works.
The power of a great message
Have you ever opened a promotional email because the subject line was compelling? Or come across an Instagram ad at just the right moment?
That’s because that company knew what you wanted to hear.
With the right relevant message, at the right time, you can convert passive customers into active buyers.
Where to reach them
A great message is useless if it doesn’t get in front of your audience. It’s up to you to find them.
Are they listening to specific podcasts on their commute to work? Do they scroll through Instagram a few times a day?
Customers are more likely to buy if you find them where they already are.
Attract the right leads
When you know who your ideal customer is, you spend less time going after leads that don’t convert.
According to a study done by Frederick Reichheld at Bain & Company, increasing customer retention rates by just 5% can increase your profits by up to 95%.
Attracting right leads means you get to retain more customers and therefore, more revenue because they convert more, leading to higher profit.
Retain the right customers
Not only is your business investing in acquiring new customers but you’re investing in retaining customers through emails, retargeting, or other retention strategies.
That takes both time, money, and your resources so if you can invest more in retaining more of your best customers, you can get a higher Return on Investment (ROI).
How to create your buyer persona
Developing a customer profile, or also known as buyer persona, provides in-depth insight into who your customer is.
If you were to describe your best friend to another friend, you would include information such as gender, age, job, location, marital status, interests, preferences, and other relevant information that define that person.
You should be able to describe your best customer in the same manner with details as if you know them on a personal level.
Do you need to pick one buyer persona?
The point of identifying your ideal customer is to customize your marketing strategy to fit that target group.
So if you have other best customer or buyer persona you are targeting, you can create different profiles but also with a different marketing strategy.
Here’s how you get started.
Ask Your Customers
Go directly to the source and survey your customers. Ask questions from the relevant demographic information to questions about why they chose your product in the first place.
This will help you understand their thought process and the reasons why customers are choosing you over competitors.
Here’s a great starting point for customer surveys:
- Demographic defining questions such as age, gender, location, income, etc
- What hobbies or interests do they have?
- What inspired them to purchase your product?
- Why did they choose your product over the competing products?
With these questions defined, you’ll have a solid starting point for your sales and marketing strategy.
Use the data you already have
You already have data on the customers that have purchased from you in the past. When you’re parsing through this data, what customers standout as your ideal fit?
- Who are the ones that continue to buy from you?
- Who provides the highest profit?
- What demographic do they fit into?
- How else are they engaging with your brand?
Take the data you’ve already collected, and fill in the blanks in their profile.
Pay attention to prospects that didn’t buy
It’s as equally important to know why good potential customers don’t buy from you as it is to understand why they did.
Especially for high-value products and services such as SaaS, it’s worth surveying key lost opportunities to understand who’s not buying from you and why.
Did they purchase somewhere else? Were they confused about your offering? What made them lose interest?
Learn from your lost opportunities. If they fit your buyer persona but didn’t convert, you want to be able to improve your process or enhance your messaging so that next time around, they do become a customer.
How can a New Business build a Buyer Persona?
Even new businesses without their own data sets can create a customer profile.
Do customer research, conduct surveys and study relevant industry data to start to shape a profile. Then ask yourself these questions:
- What are my competitors doing and who are they targeting?
- Do I share customers with my competitors or do I want to differentiate my product?
- What market trends apply to my product?
- Can I use focus groups or test advertising to understand who are more likely to buy?
The answers will help you shape your initial profile, which you can adjust as you gain more insight into your buyers.
Growing the sales funnel
Once you have your ideal customer profile or buyer persona, you can better brainstorm and determine how to better grow your sales funnel.
Since you now better understand who and where your ideal customers are and their thought process, you can target them in different stages in the buying process or buyer’s journey to engage them at the right time with the right message.
Focus on how to increase your brand awareness, increase traffic, convert them, and grow their customer lifetime value with each of your buyer persona.
And don’t forget- your customers and their behaviors change over time.
Don’t expect your current buyer persona to remain the same forever, and continue to evaluate your data to make any necessary changes.
The power of knowing
Knowing your customers makes it possible for you to customize your sales and marketing funnel directly to them.
When the time, place, and messaging are right, your business can increase its revenue at a higher profit.
How are you identifying your best customers?