Sometimes it is easy to meet these people but most often they are in no definite place where you could access them easily. They are everywhere, and they are nowhere.
But as difficult as it is, it is a very rewarding thing to do. You need this information to be able to test how good the business idea is. When you have thorough understanding of the customers, you will have insight to what you can expect as income from the business. The following are important things to find out about your target customers, with respect to your business.
Who They Are
Here you need to be clear on the demographics of your potential customers; like age group, gender, race, location, financial and social status, religious affiliations/beliefs and level of education both formal and informal, occupations, etc. Don’t think you know them already.
Take time to find out more and you will be surprised how much you will be able to gather. You don’t necessary have to go to every one of them to find this out. At the time you are conceiving the business idea you have these target groups in mind and should be able to make general statements about them after consulting a hand full, on these issues. But having specific information say through questionnaires, is going to minimize assumptions.
If you will be targeting to offer your products and services to other businesses, then you also need to find out their number of years in business, their business cultures, their customers, their locations, they goal, etc.
What They Want
As much as you have something you want to offer to your customers, they also have something they are looking for. It will be foolish to assume that what you have is what they want, without finding out from them to be sure.
Customers want different things. They go to the market and very often have a hard time getting some of the things they want. Sometimes what they want is not even in the market while other times, it is there but either not accessible or not the way they want it.
More than the goods or services they want, they are after quality, reliability, consistency, etc. What do you hear your target customers complain often about? Listen keenly and go for what they want. Read my post titled, ‘Four Things That Will Keep Your Customers Satisfied’ to get more insight on this.
Where They Go and Why
After knowing what your potential customers want, the next thing to do is to find out where they go to get what they want. Spend time to study them and get to know the places they go to, to get the product or service which you intend to offer as well as other products or services. Knowing where they go will help you know what to expect when you set up your own place.
Also, you will need to go further to find out why they go to those places. Is it that the services are better or they just don’t have a better place to go? If they are good, find out the good aspects in their businesses and include them in yours, making sure to do even better.
When you see where they go and why, you will automatically have competitive advantage over them. If there are weaknesses in the services offered by others, you will be able to take advantage of those areas in order to compete better in the market.
What They Have
Your target customers have something in their hands which you so desperately want to get. They have the money which you want, but need the product or service, which you offer. But knowing that they have money really does no good. How much do they have? How much can they easily give up for what you have? When you answer this question you will know what your product should look like and what price it should be sold for.
What They Think About Your Competitors
One last thing to find out about your potential customers is what they think about those already in the market before you, and the products and services they offer. Your potential customers may be patronizing the products and services in the market just because they have no better options, as well as they could be very satisfied with what they are offered. If you don’t seek to know what they have to say about those in the market, you will not be well placed to come in and make a difference.
In most cases where just one or two persons offer a certain product or service, you find out that the customers are hardly given the best. This was the case when MTN first came to Nigeria. Their services were poor but expensive. Nigerians had not many choices and so had to cope with the monopoly until Globacom came. When Globacom came, we saw a drastic change due to competition and that competition still goes on today, with more communication companies entering the market.
What They Think About Your Idea
The last thing to find out is what your target customers think about the business idea you have. They are the ones who will pay for whatever you will offer ad so it is important to know their views about it, in the first place. Ask questions like: What do you think about someone coming up with something like this? Would you continue to go for that, if there was this in the market? Do you think we need such a service in the market? From your findings you could eventually drop the idea and pick up a better one, or better still modify the idea.
To enter any market and compete well, you must do thorough findings about the group of people you target to meet, with your product or service. With that, you will always have an edge over your competitors. Before you start that business, make sure you test your business idea by finding out about your potential customers.
NB: You must not stop finding out about your customers, even when you have entered the market and are thriving. Let me see your comments below.
By Kadzem Claude
That is true,am just thinking about it. Thanks for these great post
ReplyDeleteThat is true,am just thinking about it. Thanks for these great post
ReplyDeleteYou are welcomed Usoro.
ReplyDelete