English: Logo for the podcast "This Week in Startups" (Photo credit: Wikipedia)
In creating a new service, startups need to focus on fundamentals such as solving a problem or addressing a need in a new or different way.
As important is identifying the businesses or individuals who will buy their product – otherwise known as target audiences.
At a high level, target audiences can be quickly defined. For example, the target audience for accounting software could be people who want to organize their finances to operate their businesses more efficiently. This offers a good starting point to create messaging to drive marketing and sales.
In most cases, however, there has to be a more granular approach to target audiences. Why? The reality is a product can appeal to a variety of buyers who may have different needs and goals. It means a one-size-fits-all marketing and sales approach may not work because it’s not focused enough.
To get a strong handle on target audiences, startups need to identify the different types of buyers. One of the best ways to make this happen is looking at who actually makes or influences the buying decision. From there, you look at what their needs or problems, what they’re trying to achieve, how they can be successful, and their budgets.
What you may discover is slight, but important, differences that will impact how the product should be pitched so a prospect can be pushed down the sales funnel. By clearly identifying target audiences, it becomes easier to capture someone’s attention because their needs and goals are front and centre.
For startups, this process can take time, research and tweaking but it provides valuable insight into the needs and motivations of potential customers.
More: For additional insight into how to approach the exploration of target audiences, I would highly recommend Robert Bloom’s “The Inside Advantage”.
It includes a great story about how P&G struggled to sell its Swifter Web Mop because it thought the target audience were women who wanted a product with convenience. It turned out that Italian are far more interested in cleaners with strength, which prompted P&G to completely rework its messaging. This, in turn, helps to make the Swifter a huge success in Italy.
Even more: If you’re looking for a user-friendly tool to create target audience personas, check out Personapp.
