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Customers & Markets.
A business cannot serve everyone in the same way. Understanding who its customers are, what they need and how they make buying decisions helps a business create products, services and marketing that are more relevant to them.
Start with the customer
Who are you creating value for?
A customer is a person or organisation that buys a product or service. Businesses need to understand their customers so they can better meet their needs and wants.
Needs
Things customers consider necessary or important.
Wants
Things customers would like to have, but may not necessarily need.
Preferences
Features or choices that make one option more appealing.
Finding the right people
Not every customer is the same.
A target market is the specific group of customers a business chooses to focus on. Understanding this group helps the business make more suitable decisions about its products, prices, promotion and customer experience.
Businesses may consider different characteristics when identifying a target market. These are a few common examples.
Age
Different age groups can have different needs, interests and buying habits.
Location
Where customers live or spend time can influence their needs and how businesses reach them.
Interests & Lifestyle
Interests, routines and lifestyles can influence choices.
Spending Behaviour
Businesses consider how much customers are willing and able to spend and what influences their buying decisions.
Customer research
Don't just guess. Ask and observe.
Market research can help a business understand customer needs, preferences, behaviour and opinions.
- Surveys
- Collect responses from customers.
- Interviews
- Speak directly with customers in greater detail.
- Observation
- Observe customer behaviour and choices.
- Existing Information
- Use existing industry reports, statistics or published research.
Using more than one research method can give a business a broader understanding of its customers.
From research to action
- Customer Research
- Product or Service
- Price
- Promotion
- Customer Experience
See it in real life
A café near a university.
- Target Market
- University students in the surrounding area.
- What They Might Value
- Affordable prices, convenient food and drinks, Wi-Fi and somewhere comfortable to study or meet friends.
- How the Café Could Learn More
- Surveys, conversations and observation.
- How It Could Respond
- Adjust its menu, prices, opening hours, promotions or environment.
Attracting and keeping customers.
- Attract
Make the target market aware of the business.
- Satisfy
Provide an experience that meets customer expectations.
- Retain
Give customers reasons to return and maintain a positive relationship.
Key takeaway
Understanding customers helps businesses make more informed decisions. By identifying a target market and using market research, businesses can better understand what customers value and adapt what they offer to meet those needs.