Can you confidently answer the question, “Who is your customer?” If not, it’s time to revisit this critical aspect of your business. Your customers are the lifeblood of your company, and knowing who they are—and how their needs evolve—should be as instinctive as knowing your own name.
While most businesses start with a clear idea of their target customer, many lose sight of this over time. As markets shift and customer behaviours change, failing to adapt can lead to declining sales and inefficiencies. Let’s explore how to identify your target audience and ensure your business remains aligned with their needs in today’s fast-paced world.
Why Understanding Your Customer is Crucial
Knowing your customers forms the foundation of effective business strategy, marketing, and sales planning. This insight allows you to:
- Structure your business operations around customer needs.
- Communicate more effectively with your audience, convincing them to choose you over competitors.
- Retain profitable customers while identifying new ones who fit the same profile.
Regularly updating this information helps uncover new opportunities and keeps internal conversations informed. For instance, while a physical high-street store might have been ideal pre-pandemic, today’s customers may prefer the convenience of online shopping. Adapting to these shifts can significantly boost efficiency, sales, and profitability.
How to Identify Your Target Customers
When defining your audience, start broad and refine as you go. Casting too narrow a net initially could mean missing out on profitable opportunities.
Here’s how to approach it:
- Segment Broadly: Begin by separating customers into large categories—such as UK vs international buyers or businesses vs consumers.
- Refine Further: Narrow down by factors like price sensitivity (affluent vs budget-conscious) or purchase intent (buying for themselves vs others).
- Identify Your Primary Target: Focus on the group that buys the most from you or offers the highest profitability (these may not always be the same).
This process will help you develop a clear picture of who your core customers are while leaving room for secondary audiences that may also drive revenue.
Creating Customer Avatars
Once you’ve identified your target audience, creating customer avatars—or detailed profiles—can help personalise your marketing and sales strategies. Let’s break this down with an example from a flower shop:
- Customer Goals:
- Customer A: Wants to express appreciation or sympathy (occasional purchase).
- Customer B: Buys flowers for personal enjoyment (regular purchase).
- Influences:
- Customer A: Influenced by online imagery, delivery options, and reviews.
- Customer B: Prefers in-person shopping for freshness and expert advice.
- Demographics:
- Customer A: Typically male, purchasing online for someone else.
- Customer B: Typically female, shopping in-store for herself.
These avatars provide clarity on how to tailor your messaging and services to meet specific needs effectively.
Keeping Customer Profiles Up to Date
In 2025, customer behaviours are evolving faster than ever due to technological advancements and shifting societal trends. To stay ahead:
- Review Top Performers: Regularly analyse who your best customers are and why they stay loyal. Case studies can provide valuable insights into their motivations.
- Engage New Customers: Ask how they found you and why they chose you over competitors during onboarding conversations—this feedback is gold for refining marketing strategies.
- Understand Departures: If customers leave, find out why (if possible). This can highlight areas for improvement while keeping the door open for future business opportunities.
Adapting to changes in customer behaviour ensures your business remains relevant and competitive.
How ETC Can Help You Thrive
Struggling to define or reconnect with your target audience? At ETC, we specialise in helping businesses like yours understand their customers better through tailored coaching and actionable strategies.
If you’re new to ETC, take advantage of our free new business review. In just two hours, we’ll provide expert advice and leave you with practical steps you can implement immediately to improve your marketing and sales efforts.
Don’t let outdated customer insights hold you back—contact us today to future-proof your business!