Market Analytics: The Best Way To Find Your Real Market
Businesses succeed by targeting the audience most receptive to their products or services. Understanding their target market's needs, preferences, and behaviors helps businesses create effective marketing messages.
This article is about how market analytics can help your business gain greater focus on the right target market. It explains:
- Why analytics is critical to understand the target market
- The various market analytics strategies to use
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How Can Market Analytics Guide You to Your True Customer Base?
By providing insights and data-driven decision-making, market analytics aid businesses in locating their ideal customer base. They help companies focus on consumer trends, behaviors, and preferences to stand out and attract ideal customers.
Techniques for Targeting a Market With Data Analytics
Market analytics can help companies locate and connect with their ideal customers through different methods. Find the right one to suit your needs.
1. Perform Market Segmentation
Market segmentation means dividing the total market into smaller subsets defined by shared characteristics such as age, income, education level, and lifestyle preferences. Doing so helps businesses manage their targets. Get started with segmentation with the following steps:
- Gather relevant data about the market, including demographics, psychographics, behaviors, and purchasing patterns, from research, surveys, customer interviews, or existing databases.
- Identify segmentation variables or the key factors that differentiate customers, such as age, gender, income, geographic location, lifestyle, interests, attitudes, or buying behaviors.
- Analyze the collected data and segment customers based on the identified variables.
- Assess the attractiveness and viability of each segment based on factors such as size, growth potential, profitability, competition, and alignment with your business objectives.
- Develop personas for each segment, including their characteristics, needs, preferences, motivations, and pain points.
- Select target segments that closely align with your business goals, resources, and capabilities.
2. Use Customer Profiling
Through customer profiling, businesses can create detailed profiles of target customers by gathering data on their demographics, behaviors, preferences, and purchase history. It is a valuable process that helps businesses deeply understand their customers and find their target market. Here are strategies to conduct customer profiling:
- Get data about existing customers such as demographic information (age, gender, location), psychographic information (interests, values, lifestyle), behavioral data (purchase history, engagement with the brand), etc.
- Examine the collected data to identify customer patterns, trends, and commonalities.
- Identify the key characteristics and attributes that define the target market. Look for characteristics that align with the business goals and indicate a high potential for engagement and conversion.
- Develop detailed customer profiles that represent the target market segments. Profiles should paint a vivid picture of the ideal customer and their needs.
- Validate customer profiles by comparing them with actual customer data and feedback.
- Use customer profiles to guide marketing and sales strategies. Tailor messaging, content, advertising, and product positioning to appeal to each customer segment.
3. Consider Competitive Analysis
Analyze the competitor’s strategies, strengths, weaknesses, and market positioning to identify gaps in the market, differentiate their offerings, and develop unique value propositions. Businesses can find their target market by performing competitive analysis, and here are the best practices for doing it.
- Identify main competitors in the market, such as businesses that offer similar products or services, and target a similar customer base.
- Collect information about competitors' products, pricing, distribution channels, marketing strategies, target market, and customer base. Use their websites, social media platforms, press releases, industry reports, customer reviews, etc.
- Evaluate competitors' position in the market by assessing their unique selling propositions (USPs), value propositions, and messaging.
- Identify competitors' strengths and weaknesses by considering product quality, pricing, customer service, brand reputation, distribution networks, and marketing effectiveness.
- Compare the target market with the competitors. Locate overlaps and areas where offerings align or compete directly.
4. Include Customer Surveys and Feedback
Conduct surveys, collect feedback from existing customers, and gain insights into their preferences, satisfaction levels, and needs. Businesses can use this data to refine products, services, and marketing strategies.
Performing customer surveys and gathering feedback starts with the following:
- Clarify the objectives of the customer survey and feedback collection.
- Determine the most appropriate survey method for the target market and objectives.
- Create a well-structured questionnaire that covers the areas you want to explore.
- Select the target audience for the survey based on the actual or potential target market. Consider demographics, purchase history, or other relevant segmentation criteria.
- Distribute the survey using the chosen method. Don’t forget to communicate the purpose of the survey and ensure privacy and data protection.
- Analyze data gathered from a sufficient number of survey responses.
- Gather feedback through customer support interactions, product reviews, or social media comments.
- Identify common patterns and segments within the target market. Look for clusters of customers who exhibit similar preferences, behaviors, or needs.
5. Integrate Data Analytics and Market Research
Data analysis and market research yield valuable insights. By analyzing customer behavior, market trends, industry reports, and social media conversations, businesses can make effective data-driven decisions to target their audience.
Performing data analytics and market research is critical to finding the right target market. Here are the top techniques to use:
- Clarify specific market research objectives, such as demographics, purchasing behavior, preferences, or market trends.
- Identify data sources for research, including internal data from customer databases, sales records, or website analytics. External data sources include market reports, industry publications, government data, and third-party research.
- Collect primary data to gather specific information about the target market using surveys, interviews, focus groups, or observations.
- Perform data analytics to extract insights through statistical analysis, data visualization, and other analytical techniques.
- Segment the market effectively using demographic, psychographic, geographic, or behavioral segmentation approaches.
- Conduct a competitive analysis to understand how competitors target the market segments you've identified.
- Implement advanced marketing strategies and monitor results.
6. Use Customer Journey Mapping
Identify customers' touchpoints and interactions with your business across different channels and stages of the buying journey. Customer journey mapping helps identify pain points, opportunities for engagement, and personalized marketing messaging opportunities.
Customer journey mapping is valuable for understanding the target market's interactions, experiences, and needs. These techniques can help with customer journey mapping.
- Identify detailed customer personas that represent the target market segments.
- Define customer journey stages: awareness, consideration, decision, purchase, and post-purchase. Adapt the stages to align with the specific industry or business model.
- Gather qualitative and quantitative data about the target market's interactions and experiences at each stage.
- Map out the touchpoints or channels where customers interact with the business at each journey stage.
- Identify customers' actions and the emotions they experience at each touchpoint and stage.
- Identify areas of improvement and opportunities for better aligning with the target market's needs.
- Prioritize improvements that have the most significant influence on enhancing the customer journey.
7. Add Predictive Analytics
Utilize historical data and predictive modeling techniques to forecast customer behavior and market trends. Predictive analytics helps businesses anticipate customer needs, optimize campaigns, and allocate resources. Performing predictive analytics reveals valuable insights to identify the actual target market. Here's how to effectively perform predictive analytics:
- Clearly define the objective of predictive analytics, such as customer behavior, preferences, purchasing patterns, or lifetime value.
- Gather relevant data from various sources to understand the target market, including demographics, transactional data, website analytics, social media data, survey responses, etc.
- Clean and preprocess the data to ensure its quality and usability.
- Identify the variables or features, including demographic information, browsing behavior, purchase history, engagement metrics, and other relevant data points.
- Use predictive modeling techniques based on the objective and data characteristics. Regression analysis, decision trees, random forests, neural networks, or clustering algorithms are common techniques.
- Assess the performance of predictive models using appropriate evaluation metrics such as accuracy, precision, recall, F1 score, etc., depending on the nature of the prediction task.
- Extract actionable insights that can guide marketing strategies and customer targeting.
- Create continuously iterative models with new data, monitor changes in customer behavior, and adapt strategies accordingly.
8. Highlight Social Media Listening
Monitor social media platforms and online communities to get insights into customer conversations, sentiments, and trends. Social media listening helps businesses understand customer preferences, identify influencers, and engage with their target market.
It is a powerful tool for finding and understanding the real target market. Marketers perform social media listening by:
- Defining the specific objectives of the social media listening efforts, such as finding consumer conversations, preferences, opinions, or pain points.
- Select social media platforms where the target market is most active, including Facebook, Twitter, Instagram, and LinkedIn.
- Set monitoring tools to track and collect relevant conversations and mentions related to the target market.
- Monitor and track conversations, including keywords, hashtags, and mentions relevant to the industry, products, or brand.
- Analyze sentiment and themes within the conversations and determine the overall sentiment (positive, negative, neutral) towards the brand, products, or industry.
- Identify influencers within the target market and engage with them to build relationships and leverage their influence.
- Monitor and analyze your competitors' social media activities to refine your approach and differentiate yourself in the market.
- Extract actionable insights from the social media listening data and integrate them into the marketing strategies.
Businesses can zero in on their target market by conducting market analysis and creating better strategies and campaigns to win them over. Companies can improve all aspects of their business, enhance product or service development, and boost revenue through efficient marketing analytics.
It’s time to discover how market analytics can improve your business. Partner with an expert Las Vegas analytics company. Call Digital Authority Partners (DAP) now.
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