Too often when I work with new business owners through business coaching or building their new brand, they feel anyone can be their client. Maybe they own a t-shirt company and anyone can buy a t-shirt. Maybe they own an accounting company; lots of people need an accountant. Maybe they are starting a dog grooming business; any one with a dog could be their customer. Right? Wrong. 

While they “could” be your ideal customer, that doesn’t mean they will be your ideal customer. Maybe I like to groom my dog myself. Maybe I’m a w2 employee and I want to do my own taxes because they are simple. Many reasons exist why someone or some business may not be your ideal customer. You have to see the value and believe in the service. 

Below are five ways to define your target market in business: 

1. Demographic Profiling: this includes age, gender, income, education and location of your target market. 

2. Psychographic Segmentation: Understanding the personality, values, interests, and lifestyle of your target market. 

3. Behavioral Segmentation: Analyzing consumer behavior patterns, such as purchasing habits and decision-making processes to determine the target market. 

4. Geographic Segmentation: Grouping customers based on their location, such as by city, region or country. 

5. Firmographic Segmentation: Examining company-related characteristics, such as size, industry, and business, type, to determine the target market for business-to-business (B2B) marketing efforts. 

Let’s use the new accountant example and walk through the five ways to define your target market. Typically a CPA firm won’t compete with H&R Block accounting. Those are two very different clienteles. It’s important when you first start a business to really define your vision and passion because they helps define your clientele. The following five points can then further define the messaging and marketing. 

Demographic Profiling: 

• An accountant can certainly do work for anyone with a tax return BUT some are not going to see the value of hiring an accountant. Why would someone who is a w2, owns no property and has no investments hire an accountant? It would be a waste of money. 

• Location is also important since CPAs or other types of Accountants cannot always work across all state lines. Some like to come into an accountant’s office, which would narrow down a location even further even though it’s not necessary. 

Psychographic Segmentation: 

• Someone who hires an accountant sees the value. 

• Maybe they value their time and see accounting as a waste of it.

• They have no interest in filing their own taxes or learning how to do so. 

Behavioral Segmentation: 

• These people make a decision to hire an accountant each year and once they find one they like will stick with him/her.

Geographic Segmentation: 

• We already discussed location based on states but how hands on does the accounting firm want to be? Do they want to be able to meet in person with the clients? Are they fine meeting on Zoom if distance is an issue? 

• This affects your marketing and messaging. 

Firmographic Segmentation: 

• This is all about B2B. Accountants have the opportunity to work with the consumer and the business market if they choose. This is where it’s important to define exactly who you want to work with. 

• This then impacts your marketing efforts. 

Clearly defining your target market is essential for creating your brand, your messaging, your business plan and marketing. The more you can niche your clientele, the easier it is to create these pieces, start marketing and grow your business. 

If you are new to business or someone seeking to update your target market, reach out and set up your complimentary consultation!