Speaker 1: Identifying, locating, and finding your target audience is your business's first and maybe even most important marketing task. This is because the success or failure of every single thing you do ultimately comes down to your ability to clearly define exactly who it is that you're trying to reach. Finding your target audience or target market is so important that the word market is baked right into the word marketing itself. So, let me show you how it's done. One of the biggest differences between the brands and businesses that thrive and succeed and manage to be profitable year after year versus those that struggle and stay stuck or ultimately fail really comes down to their ability to locate and to find and to identify and to connect with their target market, those ideal customers that they want to serve and attract and sell to. But first things first, whether we're talking about target audience or target market or ideal customers or customer avatars or any different combination of all of those terms, they all pretty much mean the exact same thing. Essentially, it's nothing more than just a group of people, a group of potential customers that you want to attract or to sell to. That's your target market, that's your target audience. And here's why getting your target market or your target audience right is just so important. Matching your message, your offer, your business with your ideal target market, those ideal perfect customers or audience you're trying to reach, this is the key to success. And when you get it right, all of your marketing, all of your efforts, all of your business becomes ridiculously more effective and ridiculously more profitable. I'm not talking about making a few extra sales or attracting a few extra customers or increasing your revenue by one or two percent. I'm talking about exponential growth and the ability to literally transform your entire business. Get your target market and your messaging right, find the alignment between the two and attracting new customers and making more sales becomes almost effortless. But get it wrong and the sad reality is that most businesses do, which explain the dismal statistics on business success rates and why so many fail. Well, this is the reason that so many end up stuck and stalled and just spinning in circles, wondering why nothing's ever working. And well, I want better for you. Now, obviously, the first step to finding your target audience, your target market comes down to properly identifying who exactly they are. So we'll start there. But first, a big thank you to this video's sponsor, Zootrix. Zootrix is a complete rank tracker suite that gives you a simple yet incredibly powerful solution to track all of your business's keywords and see how they're performing on Google. So you can not only see how you stand right now, but also where the next areas for improvement and optimization are. It not only provides real-time notifications and AI-powered accuracy, but it also allows you to track not only your business, but also the ability to white label reports for clients or anyone else that you want to do this for. One of my personal favorite features of Zootrix, though, is the ability to do keyword research, not just with Google, but with YouTube as well. Zootrix also provides me with top keyword recommendations and competitor research and reports and alerts and notifications, all sorts of other valuable features. So make sure to check out Zootrix by clicking the link in the descriptions below this video. All right. Now, when it comes to identifying your target market and to clearly defining who they are, well, the very first thing you need to do is not make probably the single biggest marketing mistake of all, which is claiming that your target market is everyone. Here's the deal. There are 8 billion people in the world. So I'm going to make the bold yet accurate statement that trying to appeal to everyone is probably just a little bit too broad. And we may want to dial it back by, I don't know, a few billion or so. Also, while we're on the subject, people with money are also not your target market. Sure, your target market may have money. And in fact, that's probably a good segment to go after. But every single person with money is, again, just a little too big. And the same thing goes when you say that your target market is men or women. I mean, all men, all women. Once again, that's billions and billions of people. There's an expression that we have in marketing that says when you try to appeal to everyone, you end up appealing to no one. And the way that this works is because by trying to appeal to everyone, by trying to attract everyone, you're forced to naturally water down your message, making it far less attractive and far less appealing to the people that you actually want to attract. So, to help you break this number down into a more manageable number, well, I've got two different marketing models to share with you. The first of which is TamSamSom, and the second is a way of segmenting your market. So, let's start with TamSamSom. The first thing you want to take a look at is the Tam. This is the total addressable market, and it makes up essentially all of the people who could or would buy whatever it is that you have to sell. Typically, this is a huge, huge number, but we use the Tam in order to identify sort of the market's potential and growth ability as well as stability because are there enough people who are actually buying what it is that you're selling? For example, let's say you're selling coffee. Well, your Tam would be all of the coffee drinkers around the world. But again, that's a huge number. And this is why we next have Sam. The Sam is the serviceable addressable market, which essentially is the smaller segment of the people who would buy whatever it is that you're selling. This is where you start to niche down just a little bit more. So, using our coffee example, we could say, well, do you sell primarily a dark roast or a light roast? Does it come from this specific region or that specific region? Is it an espresso or a drip coffee or whatever it is? Again, the Sam is going to be a fairly large number here, but of course, you're going to then be able to distill it down further by looking at some of the segmentation. I'm going to lead you to in just a second. Anyway, the Sam is essentially the maximum market value that your business or your company could potentially have. Again, it's going to be a pretty big number. And this is why from the Tam, we move to the Sam and then we distill it down even further to your target market. And this is going to be the group of people that are best aligned with what it is that you're selling. A quick note, just in case you're interested in this kind of thing, there's another term as well called the SOM or serviceable obtainable market. You get this number by dividing your last year's revenue against the Sam. For example, let's use the consulting space. Well, last year in 2020, the Sam was $132 billion. So, in order to determine your SOM, you just divide your last year's revenue from that number. The beauty here is that by doing this, well, pretty much regardless of what business or market or industry you're in, pretty sure you're going to find that there's some really good growth potential and opportunities and plenty of room for everyone. Anyway, from Tam to Sam to target market with a brief mention of SOM, but you'll still find this is a pretty big number to work with. So, we're going to want to distill it down even further. And that leads me to my next point on segmentation. Segmentation is really just fancy marketing talk for taking different segments of the market, different buckets or groups or categories of people that have some kind of similarity or commonality. And one of the following traits I'm going to share with you. The first and by far the most common way to segment your market all comes down to demographic segmentation. This is where you take a look at the people that you want to serve and you find commonalities and overlaps in one of the following areas. It could be their age or their gender or their income or their occupation or anything like that. Again, what we're looking for here is some kind of similarity, some kind of common trend among your best people or among the people that you want to serve. Another kind of segmentation is geographic segmentation. This is where you take a look at customers and you group them via their city, their state, their province, their country, their neighborhood, their street, basically where they live. It sounds simple and it is. Then you have psychographic segmentation and this is where things get a little bit more complicated but also a whole lot more profitable. And we start to group categories of customers based on their beliefs and their values and their lifestyles and their attitudes, other groups or affiliations or organizations that they're a part of. Basically, all of the mental or head stuff, how they think, what they do. Of course, we can take this one step further, which leads us to behavioral segmentation, which unsurprisingly is how they behave. One option for behavioral segmentation is taking a look at purchase behavior, how they make buying decisions, how often they purchase, where they purchase, things like that. We could also look at behavior segmentation based on occasion or timing. For example, different buying patterns around holidays or times or life periods like graduation or moving or starting a new job or a family or anything like that. Can also segment on behavior based on desired benefits and what matters more to different segments of the population. For example, some customers may care more about quality, others more about speed, others more about reliability and another group more on price. Not to mention those end states or those desired outcomes and what they're hoping to achieve. Again, this is the importance of really dialing in who it is you're trying to serve and trying to figure out what they want to get, what are their goals, their dreams, their desires, their aspirations and all of the things they're trying to work towards that your business is positioned to help them achieve. So there's lots of ways of segmenting up your market. If you already have a business with existing customers, well then finding your best ones and then finding those traits and the commonalities and the similarities between them is as simple as combing through your database or having a few conversations with your existing customers. If it's a new business, however, well, there is no shortcut and good old-fashioned market research is going to be required. So I'm gonna make sure to leave you five easy tips for doing effective market research at the end of this video. But before you check out that video and seeing as we're both here now, well, why don't we take our segmentation one step further by dialing into two more frameworks known as the PVP and the RFM. The PVP and the RFM framework are both incredibly valuable at diving in and really going deeper into your customers and finding the ones that are going to be the most beneficial to your business. Let's start with the PVP framework. And the first P is all about personal fulfillment. Essentially, this P is all about identifying how much you actually enjoy working with different types of customers, different types of people. It's probably no surprise that you're gonna gel, you're gonna click with certain types of people better than you are with others. Well, it only makes sense to try to attract more of the people that you like while simultaneously pushing away more of the people that you just don't quite click with. The next letter V is value to the marketplace. The reality is, is that certain segments of the market are going to value what you do more. They're going to appreciate it more. They're going to be willing to pay a premium for your offer, for your product, for your service, for your expertise. And our third letter, our next P is all about profitability. This is essentially how profitable the work you do is for this segment of the target market. Once that's done, well, let's take a look at the RFM framework. Again, another valuable tool at identifying your market, your segment's best customers. R stands for recency. And essentially, it's about how recently a customer has made a purchase. Typically, we value more recent customers because they've made more recent purchases and therefore they may be more inclined to sort of carry on that relationship and further it down the road with more purchases, which leads me to the next one, which is F. F is all about frequency. Unsurprisingly, how frequently they make purchases. Doesn't take a math genius to know that more frequent purchases lead to higher lifetime customer value and more revenue for your business. And then our final letter of the RFM is monetary value. I guess it's kind of two letters. And when we add these things up, the recency, the frequency, and the monetary value, well, you can start to see the overall profitability of a customer. You can then take this number and apply it back to your PVP index. And of course, you can apply that back to some of the segmentation you did to start to get a much clearer picture of exactly who it is you're trying to target. Once all of that is done, the final piece of the puzzle is actually the easiest. And it's simply to take your ideal customer avatar, your target market, your target audience, that person that you're trying to attract, and then really just taking their details, probably starting with their demographics like age and gender, going over to Google and typing that in to find out where they're present and active online. For example, let's say that you've determined that your ideal target market is a man aged 45 who's into outdoor sports and fishing. Well, not only are there a number of online resources and online sites dedicated to this activity, but as far as social media platforms, well, a quick Google search of males aged 45, well, it's going to show us that they're on Facebook and they may be on LinkedIn and they possibly watch YouTube as well. And yes, it really can be that simple, which is why the advice to do everything and be everywhere is outdated and kind of exhausting, really overwhelming. Especially when your ideal target market and the people that you actually want to reach, well, they're not everywhere, they're not doing everything. Rather, they're probably congregated on one or two or maybe three different platforms at most. So, focus your efforts, go there, ignore everything else. Of course, to help you do this that much better and that much more effective, I do have another video that's going to show you five fast and incredibly easy market research strategies that you can use right now. And I've got that video linked up right here. So, make sure to check it out now and I'll see you in the next episode. So, to figure out exactly what your customer wants, well, let's get started with Amazon. Now, the reason Amazon is at the top of the list is because it is by far the fastest...