IV.Customer Analysis
This Section's Contents
You can download our Business Plan Template (including a full, customizable financial model) to your computer here.
Demographic Profile of Target Market
[Company Name] will primarily serve e-commerce customers. The demographics of these customers are as follows:
- According to Invesp, 79% of females and 77% of males who have internet access have purchased something online in the past 12 months. Those aged 50 to 64 are the most likely to make an online purchase, followed closely by those aged 30 to 49.
- Unsurprisingly, more online purchases are made by those households with income above $75K per year, though 67% of households with income below $30K have made online purchases.
- When it comes to e-commerce, men drive nearly as much spending online in the U.S. as women. Many men want to buy everything online: 40% of men aged 18-34 say they would ideally “buy everything online,” compared to only 33% of women in the same age group.
- Globally, Generation X (age 35-49) respondents comprise about 28% of those willing to make a purchase online and Baby Boomers (age 50-64) make up about 10%. The Silent Generation (age 65+) contributes roughly 2%. The youngest age group, Generation Z (under age 20), represents about 7% of those who intend to purchase online.
Customer Segmentation
We will primarily target Consumer age groups that have the greatest exposure to the internet for work and leisure are most likely to shop online:
- Consumers aged 18 to 30 – Consumers in this segment have the least discretionary income to spend on e-commerce. This segment’s purchases are mostly in clothing and footwear and small electronic devices.
- Consumers aged 31 to 44 – Consumers in this segment also have significant exposure to the internet and can afford higher-priced goods, such as larger electronics purchases and discretionary items. Moreover, these time-strapped consumers are driven to e-commerce and online auctions by convenience.
- Consumers aged 45 to 54 – Consumers aged 45 to 55 generally have higher disposable income for industry goods. This segment is often more concerned with the convenience than the price of online items.
