How To Identify Your Target Customer In A Subscription Based Business

Subscribe Our Newsletter

ID-100144308If you want any business to be successful, you have to ensure you reach out to the correct audience. If you aren’t, then you could have a lower rate of return and poor customer retention rates. This could lower your profits and possibly mean your subscription based business is running at a loss.

Learning who your target customer is and how to engage with them through whatever marketing tactics you plan to use is an important step. Identifying your target audience isn’t as easy as stating it’s a certain group of individuals. Instead you have to ask yourself a set of questions to define your target audience.

So what questions must you ask and how do these help your business from identifying your ideal subscription customers?

1. What Solutions Do You Offer?

The first step in the process is to identify what the problem is that your subscription business solves. When you have discovered what you are offering, then you can start to work out who is going to benefit the most from your product.

2. Who Is Your Customer?

This is the part where you describe in detail who your customer is. This doesn’t need to be a real person, but it helps to create someone for your marketing team to imagine they are talking to. To help in this process, start by listing all the different types of customers that experience problems your product solves. Then group these customers by certain criteria (i.e. location, income, reading habits, etc).

Once finished you should start to see patterns. This is how you construct your average customer. Give them a name, age and a family to help bring this customer to life.

3. What Is To Gain From Your Offer?

You need to ask yourself two main questions:

  • Who suffers the most from these problems?
  • Who will lose the most by not dealing with these issues?

Then you need to demonstrate that the cost of not dealing with the issues will be greater than the cost of buying your product to solve them. If you can prove this, your sales pitch will be very compelling.

It is important to consider aspects like emotional upheaval, stress and reputation when answering this question. Research has often found that customers don’t mind paying a higher price for good service as it is the total value that they consider more important.

4. What Is Your Market Like?

Today’s global market is niche. There are almost unlimited choices for us when it comes to products and services. The web is a perfect platform for this. Now you can be ultra niche to deliver more personalised packages to a select group of online customers.

Therefore, now is the time to segment your market further and build on your customer profile. For instance:

  • Define the exact profession of the target market.
  • Where are they based?
  • What type of person are they? Risk taker, friendly...?

5. What Skills Does Your Company Have?

Within your organisation, whether large or small, you will have employees with certain skills and knowledge that will be highly valuable. This could be someone who has worked with your ideal customer, is great on social media or possesses expert knowledge of a certain location.

Whatever your knowledge and skills, you should use these to create a focus on those potential customers who share similar skills and knowledge. These people are more likely to speak to someone who has similarities and therefore, they could be your greatest asset.

6. Your Competition

Then you need to look at your market and see what else is available and who they are targeting. For instance, is there a similar accountancy market designed for small recruitment businesses? If so, then you might want to avoid going up against those who have already established a reputation as it can be difficult.

Alternatively, if they don’t offer a good service, then perhaps you can snatch the market from them by learning what they are doing wrong.


Target your customers correctly and you’ll have an easier time attracting subscribers to your business. Use the list of questions above to refine your understanding of your target audience and achieve a better rate of conversions, ROI and profit.

Do you need recurring billing and subscription management software? Contact one of our experts at, call or check out the Fusebill free trial.

Image courtesy of Stuart Miles at

Tags: Recurring Billing

Try Fusebill For Free

Learn More

The Complete Guide To Subscription Billing