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What is a Buyer Persona?

Chris Dale • Jan 29, 2024

I wish I had a dollar for every time a business owner said their ideal customer is “everyone. " The question usually coincides with a big open-arm gesture and a smug, wry grin…… mostly because they think they nailed the answer.


For a marketer, there isn’t a bigger red flag than that response.


It’s unrealistic, as a business owner, to think you can be all things to everyone. And if that is how you approach your customer segmentation then you are going to waste a lot of money chasing customers that aren’t going to buy from you.


This is where creating a Buyer Persona is so important.


A buyer persona, by definition, is a semi-fictional representation of an ideal customer. These are customers that you would like to attract to your business and are based on market research and real data about existing customers.

 

A buyer persona is critical as a marketing tool. It provides both demographic and buying insights that allow you to tailor your marketing activities to address the needs of your customers. 

When you create a buyer persona, you’ll understand your customers' needs, behaviours, and pain points, which will improve the effectiveness of your marketing activities.


What insights should you research to build a Buyer Persona?


A buyer persona goes beyond demographic information and delves into the motivations, goals, and challenges of the target audience. It consists of general demographic and buying insights that help us understand the buying behaviour of your ideal customers. 


One key benefit of a buyer persona is that it humanises the target market, enabling businesses to empathise with their customers and develop marketing strategies that resonate with them. By creating detailed buyer personas, businesses can gain a deeper understanding of their customers' decision-making processes and preferences, ultimately guiding them in crafting compelling and relevant marketing campaigns.


What are the benefits of using buyer personas in your marketing?


More Targeted Marketing


Buyer personas allow businesses to target their marketing efforts more effectively. By understanding the specific needs and pain points of their target audience, businesses can create tailored content and messaging that speaks directly to those needs, increasing the likelihood of engagement and conversion.


Product Development


Buyer personas provide valuable insights into the features, benefits, and solutions customers seek. This information can guide product development and innovation, ensuring that businesses create products and services that align with their customers' preferences.

 

Personalisation of the customer experience


Understanding the buyer persona enables businesses to personalise the customer experience. From the initial interaction to post-purchase support, businesses can align their customer service and engagement strategies with the preferences and expectations of their target audience.


Identify the right marketing channels


With buyer personas, businesses can identify the most effective marketing channels for reaching their target audience. Whether it's social media, email marketing, or traditional advertising, understanding the buyer persona helps businesses allocate their resources to the channels that are most likely to yield positive results.


Example of a Buyer Persona for Financial Advice.


Buyer Persona workshops are an important part of the discovery process we undertake when working with clients. Below is an example of a buyer personal for the financial advice industry.


Demographic Insights


Name: Financially aware Eric

Sex & Age: Male, aged 40-50

Occupation: Marketing manager earning $120-$150k per annum.

Marital Status: Married with two primary school-aged children.


Buying Insights


Goals and motivations:

·      To be financially secure and have a plan in place for retirement.

·      To have financial security in the event of an accident or illness.

·      To make the right decisions regarding schooling and other expenses as their children enter high school


Challenges

·      Limited understanding of financial planning and advice, including cost of advice.

·      Lack of confidence in understanding financial instruments and investment options available.

·      Limited time to manage personal investments due to family and work commitments.


Thoughts and feelings

·      Concerns about rising interest rates and risk associated with investment.

·      Some lack of trust in financial advice due to recent poor media coverage.


Information sources

·      Friends and family that have used financial advisors.

·      Accountant

·      Online financial advice and education resources.


Key attributes they want

·      Honesty - Open and upfront pricing model that is easy to understand.

·      Reviews - Case studies and reviews from families in similar situations.

·      Personalisation – Not looking for a cookie-cutter approach but a plan specific to their needs.

·      Concise – Looking for advice that is specific and actionable.

·      Maintenance – Want the plan to be reviewed yearly to ensure the plan fits their circumstances at the time.


By understanding Financially Savvy Eric's goals, motivations, and challenges, a financial advisory firm can tailor its services and marketing efforts to address his needs. For example, the firm could create educational content on retirement planning targeted at professionals in their mid-career stages, host webinars on investment strategies for busy working professionals, and provide personalised financial guidance that instils confidence in Eric’s financial decision-making.


In conclusion, buyer personas are invaluable tools for businesses in all industries. They help you to create personalised and targeted marketing strategies that resonate with the specific needs of the target audience. By investing in thorough research and crafting detailed buyer personas, businesses can gain a competitive advantage, enhance customer engagement.

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