Understanding your customer base to attract new customers

To attract new customers you need to have a good understanding of who your target audience is. These simple steps can help you work towards increasing your customer base.

1. What problems do you solve for customers?

First, you need to have a look at what you can offer your customers. Whether it’s a product or a service, you need to identify how it helps them, what issue it solves, or how it makes their lives better.

2. Identify which customers have the issues you can solve

Start building up a picture of the types of people that may need your product or service by thinking about who may have the issue that you can solve. Try to consider a wide range of factors such as age, gender, location and lifestyle. It can be useful to group together similar customers and start thinking about how best to target them.

3. Assess your current customers

Have a look at what your current and previous customers have in common. This can help to define your customer base further.

4. Survey your current customers

This allows you to gain first-hand insights from people who’ve interacted with your company. Don’t try to survey all of them, just those who’ve bought something from you in the last month. This will increase the likelihood of the transaction being fresh in their mind.

Ask them why they chose your product or service. Find out about their needs, how your product has helped them and what they like best about it. See if they considered any other companies when making a decision and what made them choose you over the competition. Finally, ask them if there’s any way it can be improved.

Analysis of this feedback can give further insights into your customer base and identify areas in which you could improve your product offering or service. In fact, 50% of SME business owners we surveyed said that retaining their existing customers was in their top three business priorities.

5. Use these insights to help attract new customers

Use what you’ve learnt from your current customers’ feedback to identify how to improve your product and potentially make it appealing to a wider customer demographic.

Other ways to attract new customers:

  • Ask your current customers to review the product and create a place for them to leave their feedback. Each positive review is a form of free advertising and helps build a better brand image for your company. Our survey revealed that 63% of SME owners found referrals and word of mouth to be one of the biggest factors that helped to grow their business. Never underestimate the power of a great review!
  • Run a new marketing campaign that provides exclusive discounts on your products or services.
  • Engage with customers on social media. Be sure to provide useful, informative content rather than going for the ‘hard sell’. This will position your company as an authoritative and trusted source, which is likely to pay off in the long run.
>Back to top