One of the most difficult things small business owners have to do is identify their target audience: the group of customers their business needs to connect with in order to succeed. Once small business owner understand more about their customer base and why these people buy from them, that knowledge can help them discover opportunities to get new clients.
To help grow your business and better understand your target audience, consider following these steps.
- Keep track of customers
Create a database or system that tracks customer relationships to stay on top of regular clients and what they purchase. This will enable you to better understand their preference so you can provide what they need.
As you get to know your customers, keep track of additional personal information relating to them, such as their kids names, hobbies and general interests. Noting these types of details can help you find ways to start conversations and find common ground.
- Ask customers how they discovered your business
When customers are checking out at the front register, take a moment to ask them how they discovered your store and keep track of which methods seem the most effective at promoting your business. Make a point to revisit whichever promotional avenue helped to generate business and advertise through it again. Hopefully this will allow other potential customers to find your business, as well.
- Show appreciation to regular customers
It’s far too common, but many business owners take their regular customers for granted. If you don’t show your appreciation to clients for their business, another new and potentially more intriguing firm may come along to snatch them away. Thanking your customers can have a significant in making them feel comfortable to be affiliated with your business and happy to continue buying from you.
- Ask customers if they would act as a reference
In many ways, asking customer the question “How likely would you recommend us to a friend or colleague?” is the ultimate test.
One of the best way to gauge the efficient of a company’s ability to grow is to calculate the percentage of customers who would be willing to promote a business and subtract the percentage who would not.
This calculation is how a business determines its promoter score. The net promoter score can help an entrepreneur keep track of their success building strong relationships and a solid customer base.
- Ask for friend referrals
If your business enjoys a loyal customer base, and you’re happy with your net promoter score, this means your current customers should be happy to provide you with the names of people they believe could benefit for your business. Once a level of comfort and trust has been established with your customer base, there’s no reason why shouldn’t feel comfortable utilizing that connection to help further expand your business opportunities.