Know your customer

It's tempting to think your product is for everyone. In practice, small businesses get far better results by understanding a specific group of customers well and speaking directly to them. This guide explains how to research and describe your target market without a big budget.

This guide is general information written in our own words, based on the official sources listed at the end. Laws, regulator guidance and platform rules change, and how they apply depends on your business, so check the official source and get legal or professional advice where you need it. We don't recommend particular agencies, tools or platforms, and we never promise results.

Why it matters

business.gov.au notes that identifying your target market helps focus your marketing efforts and improves your chances of success. When you know who you serve, it's easier to choose the right channels, write messages that resonate, set sensible prices and decide what not to do.

Start with what you already know

Your own business holds valuable information:

• Sales records: which products or services sell most, to whom, and when.
• Enquiries: what people ask before buying, and why some don't go ahead.
• Reviews and feedback: what customers praise and complain about, in their own words.
• Website and social media insights: where visitors come from and what they look at.

Look for patterns. Are most customers from particular suburbs? Do they buy at certain times of year? Do they mention the same problem?

Talk to customers

Short conversations are one of the most useful forms of research. Ask a handful of good customers why they chose you, what nearly stopped them, where they heard about you and what they'd tell a friend. Listen to the words they use; they often make the best marketing copy.

Simple surveys

A short survey with a few questions can reach more people. Keep it brief, ask one thing per question, and include at least one open question. If you collect contact details, be clear about how you'll use them, and remember that spam rules require consent before sending marketing messages. See our privacy guide.

Check your competitors

Look at businesses competing for the same customers. What do they offer, how do they describe themselves, what do their reviews say, and where do they advertise? The aim is not to copy them but to find gaps: customers they serve poorly, or needs nobody is meeting well.

Describe your target market

Write a short description of your ideal customers. Include:

• Who they are, for example a type of household or business.
• Where they are.
• What problem they have, or what they want.
• How they look for and choose a provider.
• What matters most to them: price, speed, quality, convenience or trust.

Some businesses go further and write a simple profile of a typical customer. Keep it grounded in what you've actually learned, rather than guesses.

More than one group

You may serve a few distinct groups, such as households and small businesses. That's fine. Describe each one and decide which is most important. Your messages and channels may differ for each.

Use what you learn

Feed your research into your marketing plan. It should shape what you say about your business, the channels you choose and the offers you make. Revisit it as your business grows; customers and markets change.

Respect privacy

Customer research often involves personal information. The OAIC explains that people have the right to know why their information is being collected and how it will be used, and to stop receiving unwanted direct marketing. Collect only what you need, store it securely and be open about how you'll use it.

Questions worth asking customers

Useful questions include: what were you looking for when you found us? What else did you consider? What nearly stopped you buying? What do you value most about what we do? What could we do better? Where do you usually look for businesses like ours? Keep a simple record of the answers and look for patterns over time.

Free sources of information

Beyond your own customers, free sources include business.gov.au's market research guidance, public information about your local area, industry associations, and the questions people ask in reviews and online forums. Search results themselves can show what people look for and what competitors offer.

Try the email marketing checker

Our free email marketing checker asks six quick questions about consent, identifying your business, contact details and unsubscribing, based on ACMA's guidance on the Spam Act 2003. It shows what to fix if anything is missing. It runs entirely in your browser, and nothing you answer is sent anywhere.

Where our information comes from

Factual statements in our guides are based on official sources, including the ACCC, the Australian Communications and Media Authority (ACMA), the Office of the Australian Information Commissioner (OAIC), business.gov.au and Google Search Central. We link to each source at the end of the page and write everything in our own words. We don't publish invented statistics, benchmarks, case studies or testimonials.

Rules and platforms change

Consumer, spam and privacy rules are reviewed from time to time, regulators update their guidance, and digital platforms change their features and policies often. Treat our guides as a starting point, and check the official source, or get legal or professional advice, before making decisions that matter for your business.

Free official help

business.gov.au publishes free guidance and templates on marketing, advertising and online reviews, and can be contacted on 13 28 46. The ACCC, ACMA and OAIC each publish plain-language guidance for businesses on their websites. State small business commissioners and small business development centres also offer information, workshops and, in some cases, low-cost advice.

Marketing on a small budget

You don't need a big budget to market well. Many of the most effective activities for small businesses cost little except time: a clear, helpful website; accurate local listings; genuine reviews; a simple email list built with consent; consistent social media on one platform; and great service that earns word of mouth. Start with these, measure results and invest more where you see returns.

Working with agencies and freelancers

If you hire help, be clear about your goals and budget, ask for examples of similar work, agree what will be delivered and how results will be reported, and make sure you keep ownership of your website, accounts and customer data. Be wary of anyone promising guaranteed results. Remember that you remain responsible for what is published on your behalf.

Accessibility helps everyone

Making your marketing accessible helps more people use it. Use clear headings and plain language, add descriptive alt text to images, make sure text contrasts well with backgrounds, caption videos, and check that your website and emails work well on phones and with screen readers. Accessible marketing is usually clearer marketing for everyone.

Consistency builds recognition

Use the same business name, logo, colours and tone across your website, listings, social media, emails, signage and printed material. Consistency makes your business easier to recognise and remember, and helps customers trust that they've found the right business. A simple one-page style guide can help anyone who creates content for you.

Look after existing customers

It's often easier to win more business from existing customers than to find new ones. Thank customers, follow up after a sale, ask for feedback, and give them reasons to come back, such as useful updates or offers for regulars. Happy customers also tend to recommend you to others, which is some of the most valuable marketing there is.

A quick checklist

If you remember only a few things from our guides, make them these: know who your customers are; set goals you can measure; be helpful rather than salesy; make every claim accurate and provable; get consent before emailing or texting; never fake or manipulate reviews; disclose paid partnerships; and review what's working regularly.

Key points

• A clear target market makes your marketing more effective.
• Start with your sales records, enquiries, reviews and website insights.
• Talk to customers and listen to the words they use.
• Check competitors to find gaps, not to copy them.
• Collect only the personal information you need, and be open about its use.