Why brands need to know their target audience
The discussion about “why brands need to know their target audience” has gone on for decades; still, some brands don’t know how crucial it is for them to know their target audience. Ignorance is the root of misfortune – isn’t it?
Let’s tell you a short, real-life story!
We were working with a tech brand a few weeks ago. We popped the not-so-unpopular “Who is your target audience?” question. To our utmost surprise, our client, the supposed CEO of the company, didn’t have an answer. That was the most surprising thing we had seen in a while!
Many business owners don’t know their target audience; this is sad because little to no knowledge of your target audience can ruin your brand faster than you’d say, Jack Robinson. You don’t want to ruin your business before you realize why brands need to know their target audience—that’d be awful. Hence, now is the best time to learn why a good knowledge and understanding of your target audience is crucial for your brand’s survival.
What does the term “Target Audience” mean?
It’s simple!
A target audience refers to the specific group of people that your brand, product, or service appeals to. They are the people who are interested in your products and services and are likely to make purchases or use your service. You could also refer to the target audience as those you should do everything for (if you want to grow your business).
If you are a brand or business owner and don’t know your target audience, you’re increasing the chances of getting mediocre results from your brand or business. If mediocrity is your thing, you can skip this article. Otherwise, fire on. Below are reasons why brands need to know their target audience.
Why Brands Need to Know Their Target Audience.
- You’ll sell to the right people (people who genuinely need your service) only.
Imagine you are a seasoned chef. You own an Indian restaurant. The best thing to do would be to identify those who really need your service (the target audience) and channel all your attention to them.
But most businesses don’t do this. They skip knowing and identifying their target audience and dive headfirst into selling—selling to EVERYBODY! They forget that no matter how great any product or service is, not everybody will need it.
Let’s take the Indian restaurant, for example. Imagine they see everybody as their target audience (Afterall everybody needs to eat).
Consider this: Does everybody like Indian food? No! Are there people who are allergic to certain Indian spices? Yes. Are there people who find the vegetarian offerings of Indian cuisine limiting and would never have vegetarian food, even if that was the last option? Yes! Would people who fall in these categories want to buy Indian food? Not at all. However, since the Indian restaurant sees everybody as its target audience, it will try to sell to these people.
Want to know the outcome of selling to these people?—wasted time, effort, and energy. These people most likely won’t patronize the Indian Restaurant anyway; this is how some businesses run—targeting everybody.
Seeing everybody as your target audience = Selling to everybody.
SELLING TO EVERYBODY = SELLING TO NO ONE.
However, knowing your target audience ensures you don’t just sell to everybody or anybody but sell to people who genuinely care about what you offer. When you know your target audience, you’ll know who exactly your product or service is for, who needs your product, and sell to them.
- You’ll make more sales.
Every business’s biggest nightmare is being unable to make sales.
But if you refuse to know and understand your target audience, that nightmare will become a BIG reality!
We’ll tell you how.
If you don’t know your target audience, you’ll either be trying to sell your product or service to the wrong people or everybody.
Selling to the wrong people = Low sales
One thing selling to the wrong people will guarantee you is low sales. When you sell to the wrong people, you sell to people who aren’t interested in your product. Since these people aren’t interested in your product, they most likely won’t purchase—hence, you’ll have “low sales.”
On the contrary, knowing your target audience will help you filter out those who need your service from those who don’t. That way, you’ll channel your energy into selling to the right people—those who genuinely crave what you offer.
Selling to the right people = More sales
When you sell to the right people, you’re selling to people who need your services, and as a result, you have better chances of converting them into customers. They already need your product, so getting them to buy your product won’t be as tasking compared to getting people who do not need your product to buy your product.
- You’ll save money.
Most businesses run advertisements (ads) to increase visibility, get engagement, and generate leads. However, research has shown that more than $37 billion is wasted in ad spend every year from ads that fail to engage the target audience. That’s a whopping amount of money!
Here’s the catch.
If you don’t know your target audience, you’ll spend time, effort, and money on ads that target the wrong people. And, if your ads target the wrong people, you won’t get tangible results like quality leads, engaged followers, and more.
Not knowing your target audience = Targeting the wrong people with your ads = Little to no value for the money spent on ads = Ads that struggle to convert/don’t convert at all.
On the flip side, when you know your target audience, you won’t waste time, effort, and even money on ads that target people who are unlikely to become customers.
Knowing your target audience = Targeting the right people with your ads = More value for the money spent on ads = Ads that convert
- Increase your brand’s revenue.
Another equally solid reason why brands need to know their target audience is increased revenue!
All businesses (E-commerce and even physical) want to make a profit.
History has it that no business doesn’t want to make a profit.
When you know your target audience, you’ll be able to target them effectively, create content that resonates with them, cater to their needs well enough, and make more sales, ultimately increasing your brand’s revenue.
How nice does it feel to know that having a clear understanding of your target audience can be the sauce you need to skyrocket your brand’s revenue? Amazing, right?!
In today’s world, understanding your target audience isn’t just a good idea—it’s essential for brands and businesses looking to succeed! Knowing and understanding your target audience and creating experiences that align with the needs of your target audience can make all the difference. So, know your target audience!
Loved this post why brands need to know their target audience? Stay connected with the blog for more amazing reads!