5 Reasons You Should Know Your Exact Buyer Persona
Now I’m sure you’ve heard the words “Buyer Persona” being bandied around a lot but why is it so important to know what your buyer persona is? Simply because if you are starting a business, you must know your customers! And the buyer persona is your typical customer base. A buyer persona is much more detailed than a target market. You’re not simply going for the aged 20-30 group. You also need to flesh out where it is possible, what does “Steve” for example, work as? Hobbies? Interests? Family and marital status, accommodation, where he is likely to be on the career ladder, etc. The reasons why will become apparent as you read on.
Initial Market Research
When you are in that beginning stage and going door to door to gauge interest, it would help very much to approach people who match your buyer persona instead of asking every person who walks past. This saves you time and effort as well as helping you to determine if you are perhaps looking to serve the correct target market. Maybe your buyer persona is wrong and you should be approaching Sally instead of Andy. *gasp!
Either way it helps to know it.
The applicants to our accelerator program are always rather surprised at the fact that they need to do that. That is because oftentimes, people identify the target market without going a step further into building buyer personas. But this is where the power of real offline customer interviews lies. It may seem almost pointless, but trust us it is not and will guide a great many decisions in times to come.
As we all have heard by now, marketing is done differently to different age/ societal groups and through different channels. Have a consumer group aged below 35? Perhaps social media is your guy! Target group aged above 60? A newspaper perhaps?
The point here is, knowing your buyer persona allows you to target your marketing efforts to ensure that you do not waste any resources and reach the maximum amount of your desired audience
. A good example would be social media ads. Those paid Facebook ads perhaps. These are often used inefficiently because the buyer persona is not defined. Young professionals aged 20-30 tells you nothing. There is great deal of variety within that category alone. And that is why you need to dig deep.
This goes hand in hand with solving a need. Identifying the need you are filling means you are also identifying who you are helping. Who are those people who have that need and how can you better help and serve these customers of yours?
Knowing your buyer persona in this case will help you to identify the best way to tailor your product to suit their needs. Does your buyer persona have a stable income supply? Or is he a student living in a flat share? Knowing your customers also means knowing your product and how to tailor it to suit their needs better. It is the best way to find the most effective way of addressing your customers. Similar with marketing, it will help you to know what they value most and how to express your product or service in a way that will be the most attractive to them.
Price determination comes hand in hand with the above point. Setting a high premium price for something that is meant to make a student living on a budget’s life easier makes no sense.
This way, knowing your buyer persona would give you valuable guidance on where your cost limits should be as well as how to price your service/product on the market to be competitive.
Initial Revenue Projection
Knowing your potential customer base also allows you to do more accurate profit and revenue projections based on percentages of the population as indicated by the population census which will be likely to patronise your business.
This way, you can more accurately project the amount of product to manufacture and adjust further details in your timeline since selling to and manufacturing for a million people would probably take a bit more time than if you’re dealing with a very niche market.
The above details are very important especially to businesses that are just starting up. Knowing your buyer persona will help you to avoid many potential hurdles and guide your decisions as you go along.