Target Audience Analysis: A Roadmap to Building Stronger Customer Relationships

March 3, 2023

12 minutes Read

Target Audience Analysis_ A Roadmap to Building Stronger Customer Relationships

No idea what target audience analysis is or how to conduct one? 

You’re in luck. The motto of writing this particular post is to let you know everything about the target audience analysis we’ve gathered so far due to our experiences.

If you’re keen to know the whats, hows, or whys, keep reading.

What is target audience analysis in e-marketing?

Target audience analysis, in terms of digital marketing, is the process of identifying and understanding the behavior of the target audience. This involves collecting data on a few factors that influence consumer behavior.

The goal of the analysis is to create a perfect profile of a business’s ideal customer. This can help you tailor your marketing efforts to meet the demographic’s needs. By understanding your target audience, you can create more powerful and relevant marketing campaigns, personalized content, targeted ads, and much more.

What are the 6 categories of audience analysis?

There are 6 types of audience analysis that are deemed important for a business. 

Demographic analysis

Demographic segmentation divides your audience into groups based on who they are. This technique is used in both B2B (business-to-business) and B2C (business-to-consumer) contexts for two reasons:

  • to understand the characteristics of the target audience better 
  • to tailor marketing efforts based on their findings

Common B2B demographic traits include:

  • Industry type
  • Size of a company
  • Their role within the company
  • Time in position
  • Occupation
  • Income
  • Family status

Common B2C demographic traits include:

  • Age
  • Gender
  • Education
  • Occupation
  • Income
  • Family status


If a company markets a luxury product, it may choose to target high-income people who can afford the product. This is because luxury goods are priced higher than other products. High-income people have more disposable income and may be willing to pay premium prices for luxury goods that satisfy their needs and wants.

By targeting this particular demographic, companies can focus their marketing efforts on those most likely to be interested in and able to afford their luxury goods. They can create marketing campaigns and use messages to connect with their audience to convey a sense of exclusivity. 

This targeted approach can help businesses effectively reach their desired audience and increase their chances of converting them into paying customers. 

Geographical analysis

Geographic segmentation divides your audience based on their physical location or geographic area.

In other words, it differentiates your target audience based on where they live, work or spend most of their time. This approach allows companies to create location-specific marketing campaigns to meet the unique needs and preferences of each geographic region.

Location factors include:

  • Continent
  • Country
  • States (USA)
  • Region
  • City
  • Borough/District

Location segmenting is usually done this way when a customer’s location influences their decision to purchase. 

By understanding the geographic distribution of their audience, companies can effectively target and engage with their customers in a way that resonates with them. This ultimately leads to increased sales and brand loyalty.


A business that sells winter clothing can target a specific group from regions where the weather is cold and snowy. Similarly, a brand that sells mostly cotton clothes will target the audience in regions where the climate is warmer. It’s all about what resonates with the target customer.

By analyzing the geographic location of their target audience, businesses can tailor their marketing efforts to target and attract potential customers effectively. This can include developing location-specific ad campaigns that highlight the uses of the company’s product or services based on that specific region.

Psychographic analysis

Psychographic segmentation divides a target audience based on these:

  • Personality traits
  • Values
  • Interest
  • Attitudes
  • Lifestyle

This type of segmentation goes beyond basic demographics such as age, gender, and income and seeks to understand the psychological characteristics of the audience. Psychographic segmentation can include a lot of factors other than the ones mentioned above. 

Marketers literally perform research on the thought process of consumers when it comes to psychographic analysis.


A company that sells outdoor adventure gear would try to reach out to audiences who enjoy outdoor activities and adventures.  This collective is also known as “thrill-seekers” because of their love for adventures. 

To satisfy thrill-seekers, the company tailors their marketing efforts by creating highly-engaging advertisements based on the audience location. The role of these advertisements is to highlight the thrill of outdoor activities and the high-quality gear the company produces to enhance the experience.

Doing so, the company thus increases its chances of reaching the right demographic of people who are most likely to be interested in purchasing the products. 

Behavioral analysis

Behavioral segmentation is a way of categorizing your audience based on their past behavior towards your brand. The analysis involves these factors:

  • Your customer’s awareness
  • Their previous purchases
  • Their purchase patterns
  • Their usage level
  • Product/service rating
  • Product knowledge

By doing the analysis, you can gauge the behavior of your audience. You can analyze how your audience has interacted with your brand in the past to understand their preferences. This will give you a good rule of thumb as to how to make better marketing efforts for your potential customers.


When a company targets an audience of frequent travelers, they are focusing their marketing efforts on a specific group of people who have a higher likelihood of buying travel-related products and services. These individuals are likely to be interested in travel because they travel frequently, whether for business or pleasure.

By targeting this specific audience, the company can tailor their marketing messages to address the unique needs and interests of frequent travelers. For example, they may offer promotions on travel essentials such as luggage, travel insurance, or discounted airline tickets. They may also provide content that is relevant to frequent travelers, such as destination guides or tips on how to save money on travel.

By identifying this target audience, the company can allocate their marketing budget more effectively and increase their chances of reaching customers who are most likely to be interested in their products or services. This approach can lead to higher conversion rates, increased customer loyalty, and improved business outcomes.

Needs-based analysis

With needs-based segmentation, you may divide your audience into several groups according to their individual needs and desires. In general, needs-based segments fall into one of four broad categories:

Functional needs: Functional needs are the basic requirements that a product or service must meet, such as providing shelter, food, or transportation. For instance, a car company may target those who need dependable transportation for work or daily activities.

Emotional needs: These are the psychological or emotional needs, such as the need for security, affection, or self-esteem, that a good or service satisfies. An organization that sells high-end goods, for example, would aim for customers that place a high value on exclusivity and status.

Social needs: Social needs involve social interactions and relationships, things like friendship, belongingness, and affiliation. A sports equipment business may aim for ones that value camaraderie and competition in team sports.

Self-expression needs: Self-expression needs meet personal identity and self-expression demands – things like creativity, self-discovery, and individuality. An art supplies store might focus on hobbyists and artists who yearn for self-expression and creativity.

A needs-based segment will frequently fit into more than one category; therefore, it’s crucial to think about each category and how it could relate to a specific segment.


When selling organic food, companies may focus on a specific demographic made up of those who prioritize health and sustainability in their choices. This group is likely to be drawn to organic products due to the perceived health benefits and lack of chemicals.

 This allows companies to create marketing strategies that specifically address the values of this audience, such as emphasizing the health advantages, touting their sustainable practices, and demonstrating their dedication to green initiatives. 

Doing so creates a personalized marketing approach that is more likely to capture their attention, resulting in more sales and customer loyalty.

Transactional analysis

Transactional analytics aims to understand a customer’s history of interaction with a business. This includes analyzing past purchases, customer service interactions, and other customer touch points with the company.

The model classifies customers based on:

  • Time of purchase: The last time a customer made a purchase from your business. 
  • Frequency: How often do they buy from you?
  • Currency: How much did they cost?


If a company wants to target repeat customers, it means that they want to connect with customers who have previously purchased their product or service and have shown loyalty to their brand. Repeat customers already have a relationship with the company and show a level of trust in the quality of their products. 

By targeting this group, companies can use these established relationships to increase sales and customer loyalty. These audiences are more likely to purchase from the company in the future, which can help increase sales and revenue. 

In addition, these customers are also more likely to recommend the company to their friends and family, which can increase brand awareness and attract new customers. 

To effectively target these audiences, companies can offer special promotions, discounts, or incentives to encourage repeat purchases. They can also create personalized marketing messages to match the specific interests and preferences of these customers.

Why is target audience analysis important?

Audience analysis is important for the following reasons:

Target the right audience

By analyzing the demographics, psychographics, behaviors, needs and preferences of your target audience, you can identify the right people who are most likely to be interested in your product or service.

Support personal marketing

By understanding your target audience, you can create more personalized marketing messages to address their specific interests and motivations. 

This helps create a stronger emotional connection with your audience, increasing the likelihood of a purchase.

Improve the customer experience

By understanding the wants and needs of your target audience, you can tailor a better customer experience to their specific needs. 

This helps increase customer satisfaction and loyalty, generate repeat customers and positive word-of-mouth referrals.

Improves ROI

By targeting the right audience with personalized marketing messages, you can increase the likelihood of conversions and sales. This helps improve the return on investment (ROI) of your marketing campaigns and ensures long-term growth of your business.

Where does your audience analysis data come from?

Information about audience analytics can be found in a variety of places, such as:.

  • Market research: This may involve using focus groups, surveys, or other research methods to learn more about your target audience.
  • Website analytics: This entails using tools like Google Analytics to compile data on the demographics, behaviors, and interests of visitors to your website. 
  • Social media analytics: It is the procedure of learning about the traits, routines, and interests of your social media followers using tools like Facebook Insights and Twitter Analytics.
  • Customer Data: It is necessary to analyze customer data in order to identify the behavioral patterns, trends, and needs of both current and former customers. 
  • Industry reports: This involves analyzing data from industry reports or other market research in order to understand more general trends and patterns in your industry or market.
  • Sales data: Examining sales data includes determining which products or services are most popular among various customer segments. 

In general, information for audience profiling can be gathered from a variety of sources, and companies can combine different techniques to find out more about their target market. It is crucial to use reliable and accurate data sources in order to ensure that the analysis is as efficient and instructive as possible.

4 main examples of target audience profile

For both B2B and B2C businesses, the following are some current target audience profile examples:

B2B Case Studies

Enterprise Software Companies: 

Enterprise software companies may have CIOs, IT directors, and other executives who are in charge of overseeing large corporations’ technological infrastructure as their target market. They might be drawn to business process optimization, efficiency, and security software.

Human Resources Consulting Firms: 

HR managers and executives at mid-sized businesses who are in charge of hiring, developing, and managing employees may be among the clients of human resources consulting firms. They might be interested in consulting services that assist them in managing compliance, enhancing employee engagement, and creating effective HR policies.

B2C Case Studies

Fitness Apparel Brands:

Those who are interested in fashionable and comfortable workout attire may be among their target market. They may also include gym goers and runners. Products with performance attributes, like ventilation and fabric that wicks away moisture, may catch their attention.

Food Delivery Services

Their target market may include working professionals, families with young children, and people looking for quick and wholesome meal options. They might be interested in services that provide a range of meal choices, individualized menus, and prompt delivery.

It’s important to remember that these are just a few examples and that each business will have a different target audience profile depending on its industry, line of business, products offered, and other aspects. In order to identify their target market and create compelling marketing strategies that appeal to them, businesses must conduct thorough audience analysis.

How to conduct effective target audience analysis

Understanding the needs, preferences, and behaviors of one’s customers is crucial for businesses, which can only be achieved through effective target audience analysis. To conduct a successful target audience analysis, follow these steps:.

Establish Your Goals: Choose your objectives based on the results of the audience analysis. By defining your objectives, you can concentrate your analysis on the data that is most pertinent to your business, such as new market opportunities, ways to enhance customer retention, or ways to boost sales.

Collect Data: Use a range of sources to gather data, such as market research, customer surveys, social media analytics, and website analytics. You can use this information to better comprehend the demographics, behavioural patterns, interests, and problems of your customers.

Segment Your Audience: Put your clients into groups based on what they have in common. Segments can be created based on demographic data, psychographic traits, purchasing patterns, or other variables. As a result, you’ll be able to better target particular customer groups with your marketing messages.

Create Buyer Personas: Buyer personas are fictitious representations of the ideal clients you have. They offer a thorough snapshot of the requirements, difficulties, and motivations of your customers. Make buyer personas for each of your customer segments using the information you’ve gathered.

Investigate your rivals to learn about their target markets and marketing approaches. This will enable you to spot opportunities to set your company apart and attract underserved clients.

Refine Your Marketing Strategies: To improve your marketing strategies, use the information you learned from your target audience analysis. Create promotions that speak to their unique needs, develop messaging that resonates with your customers, and select the marketing channels that are most successful for each customer segment.

Businesses can gain a thorough understanding of their customers and create marketing plans that are specific to their requirements by conducting an effective target audience analysis. This may result in higher customer satisfaction ratings, increased sales, and improved business results.


There you go, target audience analysis explained. To do proper research you would need a good audience analysis tool. If you want to know more about such tools, stay tuned cause we will talk about them in one of our upcoming posts.

If you need our help in target audience research, book a complimentary consultation.

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