How to Use Market Research to Target New Customers and Increase Sales

Are you spending a lot of money on advertising to attract new customers with varying levels of success?   Would you like to understand how to better target consumers who will turn into profitable customers?  Market research can be a powerful tool to help you understand your target market, and how to reach them with the correct advertising messages.  This will allow you to optimize your advertising spend by only focusing areas that will drive new business, and means you will no longer need to spend your advertising resources on targeting consumers who will never buy your products.

This post will outline how market research can help you increase your understanding of your target audience and increase your sales.

It makes sense that if you are trying to find new customers and make more sales, the best place to start is understanding your own customers.  In particular you need to understand who they are, what their issues are, and what motivates them to buy your product.

Even within your own customer base, you will find different segments or groups of customers with different needs and motivations.

There are many different ways of segmenting your customers to get a better understanding of them.  It could be by

Demographics – i.e. age, income, family make up.

Psychographics – i.e. the attitudes of each demographics.

Buying habits – i.e. how customers buy product, and where they buy them from etc.

If your customers are other businesses then you can use Firmographics which involves segmenting customers by company size, or decision-making processes etc.

Use the information you collect about your current customers to develop the key messages for your target audience.  Once you understand what drives and motivates each segment you can develop key advertising messages to tell new customers how your business can solve their problems.

Successful marketing messages are based on knowledge and insights rather than guess-work.  By investing some time and resource into researching your target audience you can redirect your advertising budget into strategies you know are going to effectively reach your target market.

Do you have any other suggestions, or questions?   If so please leave a comment below and I will answer them for you.

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