Step 3: Target Customers

Here are three questions to consider when we think of a target customers:

-         who are they?

-         what problem does our product solve?

-         how does it solve it?

Last year I spent six months at Cambridge University in the UK while on sabbatical - its a hard life I know, but someone has to live it! I didn’t want to buy a radio or TV – I was after all there to work (and didn’t have a lot of spare cash – remember, we were renovating our house back in NZ). And then I came across the BBC iPlayer and I was able to both listen to the radio and watch Dr Who (and other TV programmes) whenever I wanted! Problem solved, it was fantastic. But obviously I am not the only one to think that. Up 10% of UK online traffic can be attributed to this wonderful little app. (http://www.wired.co.uk/magazine/archive/2009/05/features/the-man-who-saved-the-bbc/viewgallery/256434)

So who are the target market? Anthony Rose, the head of the iPlayer team said …

"It has to appeal to Mrs Smith, aged 65, who just wants to watch EastEnders, as well as the Twitterati". In other words, it had to be easy to use, by anyone that had previously watched TV or listened to the radio.  I know that there are now many other products that can do the same thing, but the BBC iPlayer has led the way in this regard. And Rose and his team were able to answer the key questions regarding the target market.

Back to Step 2 and value creation: was value created for the user? Well it certainly was for me and others have suggested that not only has the BBC iPlayer found its target market, but it has also helped redefine TV and how we use it.

And as I watch an early Dr Who episode my iPad, my partner watches the latest English Premier League game on their iPad, and our children watch a movie on a TV that was recorded a week ago, we now have to explain to our children that we can’t fast forward a “live” TV programme when the ads come on!