For subscription companies just getting started in the industry or those struggling to find success, it's crucial to understand consumer actions, wants and needs. Yet, identifying which client audiences to target can be difficult for businesses – no matter their tenure or profitability. This element of the operation requires frequent evaluation as there is always room for improvement.
SFG has some tips for how to identify the target audience for your subscription organization:
Consult with family and friends
There's no better source of information than your own network, so why not ask them what kinds of products and services interest them? Not only can family and friends give you insight in offerings themselves, but this group may open company leaders to a target market they may not have thought about before, according to Forbes.
The more diverse perspectives businesses call on, the more well-rounded understanding they'll receive of their potential consumers. This valuable data comes from a trusted authority and is often easier to gather in a short amount of time.
Study the competition
Although subscription companies don't want to mimic their opponents' efforts to analyze their customers, businesses can learn a lot from their competition. Whether it's their marketing structure and pricing or consumer reviews and social media interactions, examining particular elements of rivals' game plans can yield helpful information, according to BigCommerce. These observations aid subscription businesses in developing individual strategies in order to better identify their own target market.
Consider demographics and psychographics
There are a lot of elements to factor when looking to understand the target market of a subscription organization. Yet, two of the most important are demographics and psychographics. While the former encompasses the typical characteristics of a customer, the latter addresses more personal qualities. Inc. magazine breaks them down as the following:
Demographics:
- Age.
- Location.
- Gender.
- Education level.
- Marital or family status.
- Occupation.
- Ethnic background.
- Income level.
Psychographics:
- Personality.
- Attitudes.
- Values.
- Interests/hobbies.
- Lifestyles.
- Behavior.
Understanding how these elements factor into subscription offerings is a smart way to better realize the audience that should be marketed to.
Concentrate internally
It's common for companies to look to external sources for information to improve business operations and outcomes. Yet, looking internally may produce unexpected results for subscription-based retailers. The Donut recommended asking the following three questions:
- Do you have particular areas of expertise?
- Do you have unique knowledge of a specific geographical area?
- Are you better at managing relationships with certain types of people?
Understanding the business's perspective of these factors may help organizations develop more comprehensive personas to target in their marketing efforts.
Identifying the consumers that will ultimately lead a subscription service to financial and customer relationship-based success takes focus on the part of the company. With the help of comprehensive business analytics – like the data SFG can provide – organizations can not only target the right clientele but improve their operation as a whole.
