Introduction
Businesses thrive on customers.
Well, that’s nothing new.
But the tricky bit is identifying who your ideal customer is. As a matter of fact, every person is a customer in one way or another, but can you sell your service/ product to everyone?
Probably not.
Ideally, your product or service solves a specific pain point, but every person may not be dealing with the pain point you are trying to solve. Hence, placing your product in front of people who have no need for it will not give you any return.
For example, if your sell printer cartridges, you should look for people and businesses using printers. Those who do not use printers have nothing to do with your product. So, in this instance from the pool of people, people who use printers become your target audience.
One of the first and most crucial components of any business growth strategy is determining your company’s target audience.
Identifying your target demographic is critical for running persuasive marketing initiatives, increasing sales, and building customer brand loyalty. It is important to mention here that all these actions are tailor-made for different target audiences.
In this Review, we use Stripe as a case study to discuss the importance of determining the right target audience.
What is Stripe?
Stripe is a fintech company that provides payment processing solutions for businesses around the world. Founded in 2010, Stripe has gained popularity for its easy-to-use platform that allows businesses to accept payments online, manage subscriptions, and handle other payment-related tasks seamlessly.
What Problem Does Stripe Solve?
In the past, businesses had to navigate multiple payment processors, gateways, and merchant accounts, which was daunting and costly. Stripe aids the complex and time-consuming process of setting up online payments for businesses. Stripe simplifies payment processing by offering a fully integrated suite of payments products that bring together everything required to build websites and apps that accept payments and send payouts globally. Stripe provides flexible integration options that simplify PCI compliance without compromising on the checkout experience. They offer a complete stack for all payment needs across channels and allow users to create an account online in minutes and use their libraries and software development kits to securely accept payments.
The Master-stroke: Identifying the Target Audience
Stripe could easily take the way of directly approaching businesses with their payment API, but they took the smart way round and targeted the developers who are setting up online payments for businesses. Stripe very cleverly identified that developers were the right target audience for their product because they were facing problems in creating payment solutions for businesses.
Stripe is a company created by the developers for the developers. Targeting developers has been a key factor in Stripe’s success. By providing developers with powerful tools and APIs, Stripe empowers them to create seamless payment experiences for their customers. This not only helps businesses grow but also helps Stripe expand its reach and influence in the online payments space. Developers are often the ones making decisions about which payment processing solutions to use for various businesses, so by winning over developers, Stripe was able to gain a foothold in many businesses.
Additionally, by focusing on the needs of developers and providing them with excellent support and documentation, Stripe has built a loyal following in the developer community. This has helped to drive word-of-mouth referrals and organic growth for the company.
Let’s have a look at the strategies Stripe took to woo developers.
The 4-Point Strategy of Stripe
By targeting developers, Stripe is able to tap into the source of innovation and growth in the online economy. By providing developers with powerful tools and APIs, Stripe empowers them to create seamless payment experiences for their customers. This not only helps businesses grow but also helps Stripe expand its reach and influence in the online payments space. By focusing on developers, Stripe is able to stay ahead of the curve and continue to drive innovation in the payments industry. Here are the four strategies that Stripe undertook:
a. Integration with Popular E-commerce Platforms:
Stripe has been swift and smart in providing integrations for its payment processing solution to popular e-commerce platforms used by companies all over the world, including Shopify, WooCommerce, and Magento. Due to this, Stripe has been able to connect with a sizable and pertinent group of online retailers who are already making use of these platforms to sell their goods or services.
b. Customizable Payment Forms:
With the help of Stripe, developers have the freedom to design unique payment forms that complements business’s branding and user interface. This has helped Stripe become a desirable alternative for developers looking for a seamless and integrated payment solution that complements their brand identity and user interface.
c. Developer Tools and Documentation:
Stripe makes it simple for developers to incorporate their payment processing solution into their websites, apps, or other digital platforms by providing a wide variety of developer tools, APIs, and comprehensive documentation. Due to its flexibility and reliability, Stripe has been able to draw developers who prefer a payment processing solution that is simple to customize and integrate into their existing systems.
d. Customer Support and Education:
Through numerous channels, including email, chat, and documentation, Stripe offers thorough customer support to its target audience – developers. To help businesses understand how to use their payment processing solution to the fullest, they also provide educational materials, tutorials, and webinars. This has made it possible for Stripe to connect with companies that value quick response times and dependability in their customer support, and who are looking for a partner to help them set up and manage their online payment infrastructure.
Stripe Became Word-of-Mouth
Stripe was smart enough to realize that developers are the creators of the online world, and winning their confidence would be a game changer. Developers were struggling for long with the payment processing, and Stripe handed over a user-friendly platform to them that made payment integration super easy. And that worked like magic. Soon, developers started spreading the word in online forums like Stack Overflow and GitHub, as well as conferences and meetings. In this way, Stripe raised a devoted user base that assisted in the promotion of its services.
Besides, Stripe also has a referral program in which existing customers can refer new customers to the company and earn incentives for successful referrals. Stripe has been able to leverage their satisfied customers as advocates who spread the word about its services and refer new businesses to the platform as a result of this.
Turning Audience Into Competitive Advantage
Stripe’s strategic targeting of developers has given them a definite competitive advantage. By focusing on the needs of businesses and providing tailored solutions, Stripe has been able to outshine competitors in the fintech industry. Their seamless integration with popular e-commerce platforms, robust developer tools, and extensive documentation have made Stripe a go-to choice for businesses, setting them apart from other payment processing providers.
Also, Stripe is ‘all ears’ towards its audience. Stripe regularly organizes events with its customers to launch new products and listen to feedback and suggestions. Companies may take away lessons from this by spending money on R&D, staying current with market trends and changes, and continuously enhancing their goods and services to match the changing demands of their target market.
Conclusion
The key lesson we can learn from Stripe is that identifying the target audience correctly can make a huge difference in the trajectory of a business.
Businesses need to concentrate effort on solving a problem and when they have the solution, place it in front of the target audience facing that problem. Stripe has emerged as a game-changer in the fintech industry by providing a user-friendly, all-in-one payment processing solution for businesses.
They have effectively targeted their audience, solved a common pain point, and turned their satisfied customers into free marketing advocates. With their competitive advantage through strategic targeting and focus on customer satisfaction, Stripe has become a trusted and reliable partner for businesses seeking seamless and reliable payment processing solutions.
That’s all about Stripe.
We would like to know which factors you consider important in targeting right audience.
Feel free to use our comment section to post your views.
