Personas for startups

When founding a start-up, there is a lot of juggling with numbers: Business plan, KPIs, how much do we have to invest and where do we get capital from, what quantity should we produce (if it's a product), at what price can we offer the product or service, how much revenue must be made, when do we break even, and and and....

Far too often, we lose sight of WHO should WANT to buy the product, WHOSE PROBLEM it should solve and HOW it makes life easier for WHOM with a service. With so many key figures, it's easy to forget that customers are PEOPLE. With problems, wishes and priorities. And then: Why do we sell so little? Why does nobody know the product? Why doesn't everyone find our software solution ingenious, easy to use and life-enhancing? Well. Why?

Perhaps many people know the product. But not those who want or need it. Perhaps many people/companies need the software solution - but have a tight budget and the problem we solve is only third on the list of priorities? Maybe our service is good, but not 100% what people really need? Maybe our sales or subscription model is too complicated?
In all the hustle and bustle and enthusiasm, we must never forget the "human factor" with our customers.

Personas make it "human"

Data-based buyer personas accurately depict ideal customers. They are based on real data from real people who have real wishes and problems. They are therefore a very useful tool for incorporating the human factor into product development, marketing and budget planning - indeed for focusing on it:

• Who are the people behind the figures and statistics in my business plan?
• What motivates them to buy a product and what fears or other reasons prevent them from doing so?

These questions can only be answered with precise information.

Understanding the needs, wishes and problems of potential customers is nothing less than the foundation for product development, marketing strategy and ultimately the success of the company. Especially in the early stages of a start-up, when resources are limited and you are still exploring the market, this knowledge is invaluable. It is not only a prerequisite to ensure competitiveness, but also a way to build a deeper connection with consumers and differentiate yourself from larger, established brands.

Especially for start-ups, which often have a limited budget, the efficiency of marketing measures is a decisive factor. Instead of advertising broadly and with large wastage, they can use their resources in a targeted manner if they know the interests and behavior of their target group precisely. Data-based buyer personas enable exactly that: knowledge of how the target group makes its decisions and which channels it prefers. A company that knows that its customers make their decisions primarily on social media and are strongly influenced by recommendations from their circle of friends can, for example, integrate social media and influencer marketing into its strategy in a targeted manner.

Personas define niches

Another key advantage of knowing the target group is the possibility of product optimization. Start-ups whose buyer personas precisely identify the pain points of their customers can continuously adapt and develop their offerings if they understand exactly where there is room for improvement. Founders often start with a product idea that they believe to be the best solution, but their customers use the product differently than expected or do not even have the problem for which the product offers the solution. Obtaining customer opinions at an early stage, whether through surveys, beta tests or direct feedback, helps to align the product with the actual needs of users and thus achieve greater acceptance. Buyer personas do the same with significantly less effort.

In practice, many successful start-ups show that their close relationship with the target group has a direct impact on brand loyalty. When customers feel that a company understands their specific needs and responds to them, a loyal customer base is created. This customer loyalty is particularly important for start-ups as it provides a solid base for further growth and word of mouth - a crucial factor in the early stages when advertising and marketing costs are still a major burden.

In addition, a good understanding of the target group can help start-ups to stand out from the competition. In many markets, especially those dominated by large, established companies, it is difficult for start-ups to compete with the resources of the big players. But by targeting a particularly precise niche and better serving its specific needs, they can differentiate themselves. This differentiation is not just a question of product features, but also of brand communication and the way in which the company interacts with its customers. Start-ups that understand their target group can score points with targeted, relevant messages and clear branding that is tailored to the values and wishes of their customers:
For example, if you need a hat because it's winter, the first thing you want is to have warm ears. Any hat from any supplier can satisfy this need and the cheapest hats are probably available from the biggest players. However, many people also want to make a statement with their choice of hat: I'm cool/an it girl/I care about sustainability/I'm a circular economy activist/I like it natural/I'm too cool to show it/I'm a skater/surfer/skier/I have money/I can knit. Then they probably go to the niche brand of their choice. These are the customers that start-ups have a real chance with if they can reach them specifically. A start-up doesn't have to win over everyone as a customer. It has to target those who could become customers because they fit the company.

Personas as trendsetters

In-depth knowledge of the target group thanks to data-based personas also enables start-ups to recognize future trends at an early stage and position themselves as pioneers. If founders understand the needs of their customers not only in the here and now, but also in the long term, they can strategically plan the next steps in product development and innovation. This enables them to react flexibly to changes in the market and stay one step ahead of the competition. Trends such as sustainable consumption, digitalization or personalization are examples of topics where data-based buyer personas can help start-ups to identify potential and problems at an early stage and steer them in the right direction.

Those who truly understand their customers and treat them as people can not only communicate better, but also innovate more effectively, retain customers and assert themselves in the market. Especially in an environment characterized by uncertainty and change, such an understanding can make the difference between a start-up that manages to establish itself in the long term and one that quickly disappears from the scene again. This is why buyer personas are much more than just "nice to have", especially for start-ups.