Ideal customers, psychographics, and demographics

Lesson Details:

Video Transcription: In this video let's talk about your customer target market. This video is brought to you by Appy Pie Academy. because most of the time first-time entrepreneurs they say well of course all people are in my target market or it's all men or at all women and you actually want to dig a lot deeper because you want to find the exact group to whom it's easiest to sell and who would like your product the most so while you'd welcome everybody of course everybody can be your client only some people are radiused to buy will be more happy most happy with your product or service so let's go over an example to illustrate this let's say you have a marketing agency or you're a marketing freelancer because that's a very common type of business today well of course you want to take any company as a client but certain companies can afford certain price ranges some pay lower fees some pay higher fees for higher level service some companies only need a certain number of services that you might or might not offer some companies are too big some companies are too small some companies just might be out of your expertise for example marketing for a dentist will be very different than marketing for a mobile app and you might specialize in one over the other so the one who is specialized in will be more likely to hire you so yes there's an entire market all companies need some sort of marketing help but you can only realistically help a certain subset and that subset is what you're after identifying because it's gonna be easier to sell them now let's go over an example with shoes let's say you you have a sneaker or you have a slipper it doesn't matter what it is everybody can wear that and at some point everybody has worn a sneaker just about 99% of the people well yeah but then only some people like the kind of style you make and some sneakers are for certain kinds of activities some are for like casual some are for sports somewhere for other activities so different people that have different activities levels wear different sneakers of course there are styles and of course by whom so teenagers have different styles and different activities then slightly older people and of course very different than senior people so you know you need to know who exactly it's for even within teenagers if you think oh I'm safe I said teenagers and even within teenagers there's a million subgroups and there's a million styles and you've got a dig dig way way deeper and to dig way way deeper we have some tools so there are these things psychographics and demographics first let's go over demographics demographics are things that can be distinctly measured about potential customers these are education level okay what kind of degree do they have that's a fact income level that's a fact do they own homes they own a car they have a family are they men and women do they have children are their parents living with them or nearby or still alive or not all of those things influence behavior and buying decisions also of course employment level they have extra income they can spend more if they don't they might not spend then there's even like personal attributes their height weight and even although it's like not great to talk about these things like race or religion in marketing you do have to take that into account quite a bit because you really have to know your customer so those are things that can be distinctly measured and they're typically factual now there's another whole other set of things that is not at all factual but it's equally or more important and that's psychographics things that cannot be measured but are still very important to that individual what do they prefer what do they fear what are they passionate about what are their interests are they frustrated with anything that they're currently using like if they have a solution now like if they have a shoe now or a marketing agency they're hiring now and they don't like it we can't actually measure that necessarily but it's a factor that motivates buying or not of course their hopes and dreams and their willingness to pay for comfort meaning they'd outsource their work to a marketing agency or do they prefer DIY and of course if they like comfort they maybe buy a nicer sneaker so all of this applies and of course their past experience imagine if they're a company shopping for a marketing agency have they been burned before by marketing agencies who said they're good but weren't good there are so many of those or are they a first-time buyer and they may be less knowledgeable a little bit more naive or are they at an advanced level buyer like maybe they're in business for a long time they know exactly what they're hiring for and they can tell right away if you can help them or not these are of course extremely different customers and for all of them the demographics and psychographics will be very different so your job is to create a couple of what's called avatars like profiles of potential customers and give them likely demographics and psychographics and see which ones is your service or product best for and that will inform who you're going to approach to get to gather feedback on your business idea and certainly who you're going to approach when you're in your sales process and certainly also who are you gonna have in mind when you create your product or service or cater it or create all your sales and marketing materials so all of these things if you get your customer right then of course everything else gets shaped around it so it's actually really important and I recommend you think about this a lot.