In order to be successful in the market, your product or service must meet the needs and wishes of your customers. You also have to address the right target group with the right advertising measures. A target group analysis helps you to find the right target group, identify their needs and find the right approach for your marketing strategy.
What is a target group analysis?
The term audience analysis describes all activities that a company carries out to understand the needs of potential customers, what they expect from a product or service and how they behave when buying.
What is an audience?
A target group is a group of people that a company wants to address with its marketing measures and convince them to buy a product. For the optimal approach, it is important that all members of the target group have similar characteristics and needs.
Why do you need a target group analysis?
Knowing your target group is essential for a successful marketing strategy. This can only be effective if all measures are specifically tailored to the needs and wishes of potential customers. It also shows which channels your target group uses most frequently and how they can be reached. If you do without a target group analysis, it can happen that you never reach the right audience with your marketing strategy. Although it can also work to carry out marketing measures according to the watering can principle, i.e. simply addressing as broad a mass as possible with any content, this is very time-consuming and costly.
In addition, the focus on a target group has another advantage: You get to know the group and its needs very well and can thus constantly optimize your marketing measures and your product.
How do I proceed with a target group analysis?
A target group analysis creates a deeper understanding of the target group and their needs. It is part of the market analysis and a continuous process that should be carried out and checked regularly. The most important part of the target group analysis is the target group definition.
How do you define a target group?
To define a target group, you must first analyze your product and your company. What is your USP (Unique Selling Proposition)? What problem do you solve with your product? What benefit or added value does it bring?
Then you should not forget that not every customer is a good customer. Which customers do you want? First and foremost, desired customers are the customers who need as little support as possible and generate a lot of sales. Which customers would you like to address and which not?
If you know this, you can consider which target group your offer is most useful for and divide them according to different characteristics: You should consider both demographic and psychographic characteristics:
- the social status (education, job, income, …)
- geographic criteria (place of residence)
Psychographic criteria (traits of character and lifestyle)
- Values, attitudes, opinions
- desires, needs
- interests, activities
buying behavior of the target group
The actual target group analysis begins with the consideration of the buying behavior of the target group. Above all, it is about understanding the lifestyle and behavior of the target group in order to be able to make statements about price sensitivity, media usage behavior and product choice.
The following questions can be helpful when analyzing the buying behavior of your target group:
- What is the life situation of your buyers or potential customers?
- What unmet needs do your potential customers have?
- What is the motivation behind your purchase?
- What or who influences the purchase decision?
- Where and when and how often do you buy?
- Which media channels do your customers use the most?
- What role does price play?
How do I get information about the target group?
One of the biggest challenges in target group analysis is obtaining and collecting information about (potential) customers. There are different ways:
1. Customer Relationship Management System (CRM)
CRM systems make it easier to collect and structure customer data. One of the biggest advantages is that all customer master data, activities and interests are stored in one central system. All employees have access to relevant data at all times. And you can filter and structure the information about your customers with just a few clicks. Which products are bought most frequently by which customer group? Which products are often bought together? Etc.
2. Customer Surveys
One of the most important sources of information is your customers themselves. Surveys offer a good way to get information with little effort. It is therefore worth asking them directly in order to get to know them better. Many CRM systems also offer the option of digitally creating surveys directly in the CRM and sending them by email. So you have less effort in the evaluation and the results can be deposited directly with the right customer or project.
3. Online research
The most cost-effective way of collecting data is online research. Statistics and studies in particular can provide information about media usage so that you can identify the right channels for your target group. It is important here that you pay attention to high-quality sources, since not every source on the Internet provides reliable information.
4. Social media
Another tool to gather more information about your customers and prospects is social media. Here you get a good overview of your followers, you can quickly and easily carry out small surveys and exchange information directly with customers and prospects.
Keep an eye on topic-specific groups on social media. There you will find out what moves potential customers, what the current trends are and what needs or problems users have.
5. Web tracking
Web tracking gives you an important insight into the behavior of your customers. Which product pages or information pages are visited particularly often or for a long time? What is less interesting for your target group? With web analysis tools such as Google Analytics, you can track and analyze the usage behavior of customers and prospects on your website. You can use the data obtained to constantly improve your website, but also your marketing measures and your product.
How does a target group analysis work if I don’t have any customers yet?
Even if you don’t have any customers or experience yet, it is important to define a target group for marketing your product. This can initially be a fictitious target group. Don’t forget the target group analysis is a dynamic process and should be repeated at regular intervals.
In order to get as close as possible to the actual target group with the fictitious one, you should:
- Look at target groups of similar products
- Conduct internal user testing
- Observe current trends and developments on the market
- Involve experts and partners in the target group analysis
Once you have defined and analyzed your target group, you can use the collected data to create so-called personas.
What are personas?
A persona in marketing is, so to speak, a prototype of your customers. Personas illustrate typical representatives of your target group. Each persona has concrete characteristics, such as the above socio-demographic characteristics, interests, expectations, values, desires, goals and behaviors.
While the target group describes a larger group of people with similar characteristics and behaviors, personas describe specific people. This gives you an accurate picture of your typical customers, with customer profile, interests and purchasing behavior.
A persona is part of a target group and helps to qualitatively understand the needs, challenges or actions of potential buyers.
More success with the target group analysis
With a target group analysis you will find the right target group for your products or services. This is essential for successful marketing strategies and the right customer approach. Think carefully about who your product will add value to, who will buy it and what the expectations of the product are. Using data from your CRM and personas, you can further refine your target audience and get a better idea of people within your target audience. Always keep in mind that target group analysis is a dynamic process and must be carried out and checked regularly. In this way, you can react quickly to changes and adapt and optimize your product and your strategies in a targeted manner.