Before starting with your new dropship e-commerce website you should consider who you are wanting to target as a customer. You may think this is our obvious answer – anyone who will purchase your product. However it is better to try and pinpoint the demographics of your ideal customer.
There are a few reasons for segregating your customers by demographics. The most obvious one being that allows you to directly advertise to them. For example if you are trying to sell a female fitness product, then you would probably not advertise on a website related to aerodynamics. Although you may find a few customers there most likely will be too little to warrant the advertising campaign.
Many of the online marketing platforms that are available today have a way for you to directly market to different demographics. For example Facebook has one of the most advanced direct advertising systems available for online advertising. You can not only directly target the gender such as a female or male but you can also target via interests, age, ethnicity and even by the current place of work.
If you really know who your ideal customer is, then you’ll find it easy to directly target them. This will mean you will get better results from your advertising dollar and ultimately a better return on investment.
It’s also important to realise that not all customers are created equal. If you’ve sold anything to anyone before you will quickly find out is some low-volume customers are the hardest to please, while the larger more regular repeat customers know exactly what they want and are very easy to deal with.
Again with correct demographic targeting you can get rid of that tire kicking low value customers and concentrate your efforts in getting the customers that will help grow your business.
depending on the business you are trying to target, and the products you’re trying to sell, you may find there is some price sensitivity however this is compensated for by larger more consisted orders. All you need to do for a business customer is to ensure you offer a quality product at a reasonable price and you can gain very long term repeat customer.
If your product allows it the hobbyist group is one of the easiest demographics to sell to. Many of them spend a huge amount of money on their own hobby and know exactly what they want so they are very easy to deal with. Just think of any mountain biking enthusiastic you may know and you may be surprised to find out that there prized mountain bike costs more than a small car.
The hobbyist also offers the great opportunity to build up a repeat customer as they are so heavily involved with their hobby continue to come back to you if you have what they want.
Most purchasing decisions can be split into either a need-based or a want based type of situation.
Despite what some people think, a need at the most basic level are things that are required to keep yourself alive. These are bare necessities such as food, shelter, and water. Notice I did not list any particular brands or types of food or water as in a truly desperate situation to survive all you need is the best you can afford. If you have additional resources or funds this will change.
In today’s world, there are also a few other items that you can also classify as a need. Things such as a car to get to work, if there is no public transport, or a particular type of clothing if it is needed to keep your job. These are hard necessities however it is a need that is required to be a responsible adult. These vary depending on your situation and a certain level of maturity and responsibility is required to understand what they are.
Most other things can be classified as a pure want, i.e. you want to big TV or a big car or a big house is not necessary to survive, just nice to have.
So if he can successfully target a person’s needs, you can also build a thriving business. Just think of all the local supermarkets that are consistently busy as people require food to survive.
the holy Grail to any successful online store is to ensure you have customers who continually purchase from you again and again. Some great examples of this are disposable/one-off products that need to be purchased continuously.
Few examples of these types of products are things like cleaning supplies, food and supplements and even packaging materials. By selling these types of products you can expand rapidly, while gaining a very loyal customer base.
On the flip side there are a few customers that can cause more issues than they are worth. Some customers who are driven by price, or the cheapest possible deal, are what we call discount customers. Don’t get me wrong, as discount customers do have their place, however it generally is very difficult to build a long-term lasting business out of a customer who simply want the cheapest price. The reason for this is that it is hard to build any brand loyalty, and if the discount customer finds a cheaper alternative, they will most likely spend their money there.