How to identify the target audience: 5 methods for small businesses

Last Modified: May 27, 2025

Why can’t you work “blind”?

Over the years, I have become convinced: even the most brilliant product will fail if it is promoted to the wrong people.

Imagine that you have opened a coffee shop for students, but you advertise it through newspapers for pensioners. At best, a couple of casual visitors, at worst, empty tables and losses. It’s the same in digital marketing: without a clear understanding of who your customers are, you’re wasting your budget.

In this article, I will cover 5 methods that will help even a beginner to identify the target audience. I successfully apply these techniques in my projects and have described them in detail in my book. Let’s get started!

1. Segmentation by personal characteristics: who are they?

The first place to start is to divide your audience into groups based on key attributes. This is like putting together a jigsaw puzzle: the finer the details, the clearer the picture.

What are the parameters to consider?

  • Geography: where do your clients live? For example, a winter clothing store in Sochi will be less in demand than in Novosibirsk.
  • Demographics: age, gender, marital status. Nanny services are relevant for parents of children under 10, and online investment courses are relevant for people aged 25-45.
  • Socio-economic status: income level, profession. Luxury goods are unlikely to be bought by those who can barely make ends meet.
  • Psychography: interests, fears, values. A vegan is unlikely to be interested in a steakhouse advertisement.

Case Study::

One of my clients was selling eco-cosmetics. Initially, he thought that his audience was “everyone who cares about health”. After segmentation, it turned out that 80% of customers were women aged 25-35 with an above-average income, living in cities with millions of people. This helped to reconfigure the advertising and increase conversion rates by almost 40%.

Tip: Use Google Analytics and Yandex.Metrica to gather basic data on site visitors. If you don’t have a website yet, brainstorm with your team.

2. Mark Sherrington (5W) methodology: ask five questions

Marketing isn’t just about data, it’s also about knowing how to ask the right questions. The 5W methodology developed by Mark Sherrington helps structure the chaos and turn abstract audiences into concrete portraits.

How does it work?

Answer five questions:

  • What? What are you selling?
    Not just the name of the product, but its key features. For example, not “English courses”, but “intensive online courses for travelers with a focus on conversational practice”.
  • Who? Who’s your client?
    ge, gender, occupation. For example: “women 30-45 years old, working in an office, who want to communicate freely abroad”.
  • Why? Why will the client choose you?
    Specify a unique benefit. For example: “money-back guarantee if you don’t speak at a basic level after 3 months”.
  • When? When does the need arise?
    It could be seasonality, life situations. For example: “before a vacation or business trip abroad”.
  • Where? Where does the customer look for a solution?
    Social media, search engines, neurons, friend recommendations. For example: “search on such and such social network by hashtags #English_for_travel”.

Case Study:

When I was working with an online yoga school, we used 5W to rethink our positioning. It turned out that 70% of clients were moms on maternity leave who wanted to practice at home at a convenient time. This helped us create ads emphasizing flexible schedules and video lessons for classes “between feedings and baby’s naps.”

Tip: Conduct interviews with current clients. Ask: “Why did you choose us?” and “Where did you find us?”. Their answers will become the basis for the 5Ws.

3. Khramatrix methodology: add context

Evgeny Khramov, a lecturer at the Russian Academy of National Economy and Public Administration and a marketing communications consultant, has supplemented the classic methods with parameters that are often overlooked. His matrix includes three more key elements:

  • Target function: what problem is the customer solving? For example: “to find an English course so as not to depend on a guide when traveling”.
  • Targeted actions: what is the customer doing on the site? Looks at reviews, compares prices, downloads a trial lesson.
  • Lead: what action should be considered a success? Subscribing, calling, registering for a webinar.

Case Study:

For an online handbag store, we found out that about 60% of customers read the “Shipping and Returns” section before buying. This helped us move the block with delivery conditions to the top of the site and reduce refusals by 25%.

Tip: Use heat maps (e.g. in Yandex.Metrica) to track where users are clicking. This will show their “targeted actions” in real time.

4. Analyze search engine and social media data: listen to what your audience is saying

The digital footprint that users leave on the internet is a gold mine for a marketer. Search queries, comments on social networks, videos watched — all this helps to understand what the audience wants.

How does it work?

  • Search engines:
    Services like Yandex.Wordstat and Google Trends show you what queries users are entering. For example, if you sell fitness bracelets and people search for “weight loss gadgets”, this is a reason to add keywords about weight loss to your content.
  • Social media:
    Analyze hashtags, groups, discussions. If your audience is actively discussing sustainability and you sell products made from recycled materials, emphasize this.

Case Study:

One of my clients, who owns a baby goods store, noticed that moms often complain about uncomfortable strollers on social networks. We added a section on “Strollers for narrow elevators” with video reviews and selections. In a month’s time, traffic on these requests increased by more than 70%.

Tip: Use Key Collector to collect keywords from Yandex.Wordstat, and set up monitoring of brand mentions on social media through Brand Analytics or Awario.

5. Conducting surveys and focus groups: ask directly

Sometimes the best way to understand your audience is to ask them. Surveys and focus groups provide “live” feedback that even the most advanced algorithms can’t replace.

How does it work?

  • Online surveys:
    Create a questionnaire in Yandex Forms or Google Forms and send it out to customers via email or social media. The questions should be specific:
    • “What is most important to you when choosing [your product]?”
    • “Where do you usually look for similar products?”
  • Focus groups:
    Gather 5-10 people from the CA and discuss their needs. For example, if you are launching a language learning app, ask:
    • “What annoys you about the current services?”
    • “What are you willing to pay for?”

Case Study:

Before launching an online course on financial literacy, we conducted a survey among our newsletter subscribers. It turned out that more than 60% were afraid to invest because of the complicated terminology. We redesigned the program: we added a glossary and cases based on everyday examples. As a result, more than 90% of those who completed the course were satisfied.

Tip: Don’t offer discounts for completing the survey – this will attract random people. Rather, emphasize service improvement: “Help us become better!”. For focus groups, look for participants through thematic communities or the customer base.

Conclusion: put the puzzle together — and take action!

Target audience identification is not a one-time event, but an ongoing process. The market is changing, customers are maturing, and new trends are emerging. But with these five techniques, you can stay one step ahead:

  1. Segment your audience by key parameters.
  2. Ask questions utilizing the 5W methodology.
  3. Add context through Khramov’s matrix.
  4. Analyze the digital footprint on search engines and social media.
  5. Communicate with customers through surveys and focus groups.

If you are just starting out, start small. Allocate 2-3 hours a week to analyzing data or conducting a mini-survey. Over time, these efforts will turn into a clear understanding of who your customer is and how to reach them.

P.S. In my book, you’ll find segmentation templates, sample questionnaires, and instructions on how to use analytics tools. And if you need help developing your strategy, you can ask for a consultation.

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    Inbound Certified
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    ИП Карпов Павел Дмитриевич
    ИНН: 772973705115
    ОГРНИП: 317774600074991
    : Moscow, Michurinskyi prospekt, 25, 3