Grow your small business. That’s what you want to do, right? Well, as a small business owner, you’ve probably heard “know your audience.” Marketers shout it to anyone who would listen. But what does that mean and entail? If you own a small business, you’ll say, “This is easy—it just requires knowing your customers.” It goes beyond that because to succeed in a small business, you must study local residents, their interests, and the holy grail—how to meet their wants.

Where am I going? Local demography can help you.

Why Local Demographics Matter

Insight into your neighborhood can greatly benefit your business. Imagine owning a café. The majority of residents are young professionals. They are tech-savvy and mobile. Watch for customers entering your café. Are they carrying a laptop? Did they request WiFi? You should provide free Wi-Fi. To keep customers interested, offer online ordering and a simple, fast-rewarding loyalty program.

Suppose you live in a family-friendly environment. Focus on family-friendly food and weekend brunch. See that we’re not talking about the product yet? The services you offer are audience-specific and your main goal is to integrate your firm into the community. Demographic data helps here.

Where do you get demographic data?

You may be wondering, “This sounds promising, but where do I start?” Guess what? Not as hard as you think! U.S. Census Bureau data on local age demographics and income levels is extensive. You can cover essentials with a few clicks. Remember that this information is often outdated, so what do I advise clients to do to feel the community pulse? Enter the weeds. It is. Good old field study is needed. Sit in nearby coffee shops for two weeks before launching a café. Restaurant seats. Walk the main street and meet everyone. Join the local business chamber. Get it? Dive in!

Who else has outstanding data? You! Your website data contains it all. Google Analytics lets you track site visitors, their origins, and their interests. It’s like seeing your consumers’ thoughts.

Life isn’t one-size-fits-all; tailor your small business to your community

Now that you have data, what’s next? Use it! So how: (Continuing your neighborhood café opening.)

1. Select the appropriate product and service mix. Offering mom-friendly decaf, baby changing stations in the restroom, and a child-friendly environment will help families in your town. It may take some trial and error to find the ideal mix between kid-friendly nibbles and adult-approved drinks, so ask guests what they want. All your ingredients should be high-quality, healthful, and dietary-compliant. Consulting nutritionists and including their advice on the menu is recommended. Many read every food label word, which is surprising.
2. Create captivating messaging and communicate in the community’s vernacular. Target your marketing to your audience. You should highlight and explain your green practices if your community loves sustainability. When surrounded by foodies, provide high-quality food. No rocket science here.
3. Remember, price matters and avoid discounting. First, you must price your products correctly. That is, you must price your items high enough to generate a profit and provide value to clients without pricing yourself out of the market. How? Understanding local income levels helps you determine customer-friendly prices. Don’t even start on discounts. I’m fine for loss-leaders to debut a new product, but acquire more data by discounting around a promotion. Get a free coffee when you sign up for SMS alerts is fine. POS systems should provide you more data than you can handle now. Ask the POS vendor for data reports. What you find may surprise you.

One last thought

Data is your friend, but it’s going beyond numbers to understand your community, immerse yourself in it, and make smart business decisions. Deliver what your customers need after understanding them.

Do you want tips to grow your small business? Then, get the book:

Looking for small company marketing and expansion advice? Amazon has my book “Marketing on Main Street; Strategies for Grow Your Small Business”. It has tips to boost your business.

See John’s main site, here.

Contact John: Have John as a guest on your podcast.