No matter what business you’re in, you need to know your target audience and your ideal customer avatar. You should start by asking yourself one simple question “WHO do you want to serve?” The answer to that question is typically people who have the same problem you once had, and now you can show them a solution.
Sometimes it can be hard to identify exactly who those people are and how to describe them in a distinct target audience. Nevertheless, let’s start from the highest level and move down to define your target audience. To start with, almost all businesses belong to one of three core markets: health, wealth or relationship. So, first of all, define which of those markets your business is in.
Now, that you’ve chosen the core market of your business you can move to the deeper levels to define your target audience. Inside three core markets, there are a lot of submarkets. For example, in the wealth market, you may find submarkets like investing, real estate, sales and so on. The list of submarkets is almost endless for all three core markets. Moreover, new sub-markets appear again and again. Therefore, the next question is “What submarket does your business fit in?” But that’s also not the final spot you’re aiming with the definition of your target audience. You need to go even further down and define your niche.
Have a look at the other experts in your submarket and see what they’re selling. Think about what you can offer to your audience that is different and special. The goal is to find your unique place in the submarket, to find your niche.
Blue And Red Ocean
In the book Blue Ocean Strategy by W. Chan Kim and Renée Mauborgne, they talk about the concept of “blue and red ocean”. A “red ocean” is a popular market full of blood because of all the sharks feeding on the same small pool of fish. A fresh “blue ocean” is a new submarket or niche where there are not that many sharks yet and the competition is low.
If we go back to our division, a submarket you pick is still a red ocean full of competitors. That’s why it can be difficult to succeed there. But when you create a new niche for yourself, when you pick a specific target audience, you create a new great opportunity and your unique spot in the ecosystem. If you jump into an existing red ocean, you’ll be fighting against the strong competition. On the other hand, if you create a blue ocean for yourself, it’ll be much easier to succeed.
The examples of the blue are high-fat diet in the nutrition submarket, dealing with teenagers’ problems in parenting, flippling houses on eBay in real estate.
In the book Expert Secrets, Russell Brunson explains in more detail how to nail down the right niche for your business. So, if you’re struggling with this point, it may be worth for you to check out the book, especially since it’s FREE. He also shows how to identify exactly what you’re offering and how you are unique in your niche.
After you defined the target audience you want to serve, you need to make sure that that particular market will be able to sustain your business. The following questions will help you with this. Please note, the questions relate to people in the submarket you picked as you’ll invite people from there to your niche.
1.Will people in my submarket like the new opportunity I’m presenting in my niche?
Because you’re going to pull people from your submarket to your specific niche, you need to make sure that they will like what you’re offering. It should be attractive enough for them so they don’t think for a long time and just jump into the blue ocean you created for them.
2. Are the people in your submarket passionate about your niche?
First of all, you yourself should be interested and passionate about what you’re going to offer. Secondly, people in your submarket should also like the topic you picked. How can you figure it out? Check if there are Facebook groups, YouTube channels, podcasts or blogs dedicated to the topic you’ve chosen. Are there any events like seminars, masterminds or summits about the topic? It’s important to find answers to these questions as you don’t want to waste any time, energy or money going after the wrong niche and if people in your submarket aren’t interested.
3. Is your target audience willing and able to spend money on your offer?
Sometimes your target audience may be willing to spend money on your offers but they aren’t able because they don’t have it. On the other hand, people may have enough money but don’t want to buy from you. Your submarket must be both willing and able to spend money on your offers.
Now, after you niched down and made sure that the people in the submarket will be interested in what you’re offering in your specific niche, you’re ready to go. Craft your offer for the audience you picked and make sure it fits their needs as much as possible.
Defining your target audience is crucial to the success of your business. If you’re selling to the wrong audience, your offer may be great but still, you’ll have very few results. As soon as you choose your target audience right, you make sure that what you’re offering will have high demand.