Define your target market
1. List your existing customers characteristics, such as age, interests, geographic location, income, language, and stage of life.
2. Look at the analytics of your customers’ demographic, geographic, psychographic, and behavioral segmentation to gain insight into which type of person is most interested in your product or service.
This will help you understand where your audience resides, what their looking and buying habits are, how their values may play into their buying habits, and what may motivate people to purchase your product or service.
3. Look at your main competition’s social media profiles, blog posts, and email newsletters to see who their target market is by analyzing the language used and what type of profiles are interacting with them.
4. Make a list of your product or service’s features and benefits.
Clearly defining the features and benefits should give you a better idea of who is in need or want of your product or service.
5. Segment your customers into different groups based on their shared qualities, such as geography, psychographics, behavior, and demographics. Each group will create a different buyer persona.
6. Further refine each buyer persona by matching them with which product features and benefits would most enhance their life.
7. Finalize 2-4 buyer personas; these will equal your target market.
8. For ecommerce, use the RFM segmentation model and segment your customer base by the recency of their orders, frequency, and monetary value.
This type of segmentation will give you a more clear view of who buys from you more often, who places orders of higher value and who is more likely to be retained. Your ideal customers will be those who score the highest for the three metrics, as they have the best CLV (customer lifetime value). For the other segments, you can choose growth strategies based on the areas where they are lacking: frequency, recency or monetary value.