If you’re a small business owner, you’ve likely heard the advice to “know your audience.” It’s something we marketers say out loud to anyone who will listen. But what does that really mean, and what does it actually entail? If you’re reading this and you own a small business, you’ll say “This is easy – it just means having an idea of who your customers are. Well, okay, but it goes beyond that because to truly succeed in a small business setting, it’s critical to delve into specifics—such as the residents in your area, their interests, and the holy grail; how to cater to their specific needs.
So, where am I going with all of this? This is where local demographics come into play, and let me tell you, they can be your ally.
Why Local Demographics Matter
Let’s be honest; having insight into your community can significantly impact the success of your business. Picture this—imagine you own a café. Most of the residents in the area are young professionals. They lead tech-savvy lives and are always on the go. Pay attention to anyone walking into your café. Are they carrying a laptop? Did they ask you if you have WiFi? Well, you better offer free Wi Fi service. While you’re at it, you should also offer online ordering options and even a simple-to-use and quickly-rewarding loyalty program to keep them engaged.
Let’s say, however, that you’re situated in an area with families. You should focus on family-friendly menu items and weekend brunch specials. Notice that we’re really not talking all about the product yet? It’s about the services you offer that are specific to your audience.
In other words, your main goal is to ensure that your business fits in with the community around it. This is where demographic information becomes useful.
Where do you get demographic information anyway?
You might be thinking, “This sounds promising but where the heck should I start?” Guess what? It’s easier than you think! The U.S. Census Bureau provides a wealth of information spanning age demographics and income levels in your local area. With a few clicks you can cover the basics. But remember one thing; this information is often dated, so you know what I tell clients to do to get their finger on the pulse of the community? Get into the weeds yourself. That’s right. It’s time for good old field study. If you’re opening a café, spend a couple of weeks sitting in other coffee shops in the area. Sit in restaurants. Walk the main street and introduce yourself to everyone. Join the local Chamber of Commerce. Get it? Dive in!
Guess who else has some great data? You! It’s all in your website data. If you have Google Analytics set up, you can observe who is visiting your site, their origins, and their areas of interest. It’s like having a glimpse into the minds of your customers.
Life Isn’t One-Size-Fits-All; Tailor Your Business to Suit Your Community
Okay, now that you have some data, what’s the next step? Use it! Here’s how: (Continuing with the local café you’re opening.)
- Choose the right product and service mix. If your community consists of families, you’d better consider offering items or services that make their lives easier, such as mom-friendly decaf, baby changing stations in the restroom, and a child-friendly environment. Striking the right balance between kid-friendly snacks and adult-approved beverages might be difficult to master, so I suggest a lot of trial and error and, shocker, asking people what they want. And, all your ingredients should be quality and healthy, and they should meet various dietary requirements. You should consult nutritionists when creating the menu and include that information on the menu itself. You’d be surprised at how many people read every word on every food label.
- Develop interesting and catchy messaging; speak the language your community wants to hear. Tailor your marketing to the audience you want to reach. If your community values sustainability, you best emphasize your own eco practices and be ready to explain them in detail. If you’re surrounded by foodies, showcase your high-quality food offerings. This isn’t rocket science folks.
- Remember two things: Price matters and don’t discount. First, you have to understand that you need to price your offerings correctly. That is, you have to price your products high enough to make a good profit while showing value to your customers, but not so high that you price yourself out of the market. How? Understanding the income levels in your area helps you set prices that make sense to your customers. Now, regarding discounting – don’t get me started. I’m all for loss-leaders to launch a new product, but if you’re going to discount, do it around a promotion that will get you some additional data. So, get a free coffee when you sign up for text alerts” is perfectly fine. These days, your POS system should give you more data than you know what to do with. Ask the POS provider what data reports you can get. You might be amazed and what you’ll find.
Final Thoughts
Data is your friend, but it is more than just numbers—it’s truly understanding your community, immersing yourself in it, and making well-informed decisions to grow your business. Understand your potential and existing customers and their needs, then deliver what they need.
Get The Book:
Looking for small business marketing and advice on expanding your business? Check out my book “Marketing on Main Street; Strategies for Grow Your Small Business” on Amazon. It is packed with insights to take your business to higher levels.
About John T. Peters
John T. Peters is a visionary leader and multi-venture entrepreneur and corporate executive with a passion for empowering small businesses. He currently serves as the Executive Director of the Main Street Business Alliance in Hackensack, NJ as well as the Hackensack Performing Arts Center, and continues to expand on his proven track record of driving growth and innovation in the business community.
