Decoding Your Microgreens Market: Understanding Customer Needs (Episode 2)

August 1, 2023 by Andrew Neves Business

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This is #2 in the Microgreens World series, “Starting a Microgreens Business: What You Need to Know.” If you missed #1, you can explore it here, “Identifying Your Market: The Demand for Microgreens.”

In 2018, my friend Stephen and I embarked on a journey that would change our lives. We started JPure Farms, a microgreens business, in the basement of Steven’s house. The idea was born from our shared passion for sustainable agriculture and our desire to contribute to our local food system. Starting a microgreens business would be challenging, but we were ready to take it on. We had a vision, a microgreens business marketing plan, and a relentless drive to succeed.

Our first challenge was understanding our market. We spent countless hours researching, attending farmers’ markets, and talking to potential customers.

To find your customers for a microgreens business, conduct comprehensive market research to understand local and global consumption trends. Identify the health and culinary benefits driving demand. Analyze local buying trends and competitor offerings. Segment your target customers based on demographics, psychographics, and buying behavior. Understand their needs, preferences, and pain points. Explore different distribution channels and develop a pricing strategy. Most importantly, be open to adapting your business plan based on market feedback and data analysis.

Many new entrepreneurs and small business persons need to pay more attention to regular data analysis and plan flexibility [1].

We wanted to understand the demand for microgreens in our area and identify our target market. We wanted to understand the health benefits of microgreens, the different varieties, and their culinary uses. We also were most interested in the challenges of growing microgreens, from choosing the right seeds to maintaining the ideal growing conditions.

Despite the obstacles, we’ve been determined to succeed. We believed in our vision and knew our passion for sustainable agriculture and healthy food would drive us forward. We were not just growing microgreens but building a business that would contribute to our local food system and promote healthy eating.

Our journey was beginning, and we were excited about the possibilities.

QUICK READS

Microgreens Market: Decoding Customer Needs
The Importance of a Detailed Customer Profile
How to Use Market Research to Inform Customer Decisions
Decoding the Market: Additional Key Considerations
Related Questions
Share the Guide
References

MICROGREENS MARKETING STRATEGY

Microgreens Market: Decoding Customer Needs

Decoding your customers’ needs is crucial in creating a successful microgreens business. It begins with identifying your target customers.

Who are they?
What are their demographics?
Are they health-conscious individuals?
Chefs looking for fresh ingredients?
Or perhaps they’re urban dwellers seeking to add a touch of green to their meals?

It will make it possible to adjust product and marketing efforts in line with customer needs and preferences if you know who your customers are.

We both came from the corporate world, Stephen and I, but it never stopped our entrepreneurial spirits. We were always focused on the customer first because you need customers to have a business!

Next, we needed to understand our potential customer’s preferences and buying behavior more profoundly.

What types of microgreens do they prefer?
Are they more inclined to buy organic?
Do they prefer to shop online or at local farmers’ markets?

Understanding these preferences helped us and will help you meet your customers’ needs and predict future buying patterns.

“The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself.” (The Essential Drucker, 1973)

Customer feedback plays a pivotal role in decoding customer needs. As a result, your clients are encouraged to communicate their experiences and opinions relating to the products you sell. This could be through online reviews, social media interactions, or direct conversations. Listen to what they say about your microgreens – what they love, think could be improved, and what they’d like to see in the future. This feedback is invaluable in refining your products and services.

Based on your research and feedback, create a detailed customer profile. This profile should include demographic information, preferences, buying behavior, and feedback. It’s the point of reference when making all your business decisions, from product development to marketing strategies. Remember, your customer profile is not static. It should evolve as you learn more about your customers and their needs change.

Decoding customer needs kept our microgreens business attuned to our customers and ahead of the competition.

The Importance of a Detailed Customer Profile

A detailed customer profile is a cornerstone of any successful business strategy. It is loosely called “the customer avatar” in product development circles.

It clearly explains who your customers are, what they want, and how they behave. This information is invaluable for informing product development, marketing, and customer service decisions. But it is not static.

The main elements of a comprehensive customer profile include the following:

demographic information,
psychographic characteristics and buying behavior.

Demographic information includes age, gender, location, income, and occupation. Psychographic characteristics delve deeper into the customer’s lifestyle, values, interests, and attitudes. Buying behavior encompasses the customer’s purchasing habits, preferences, and decision-making process.

So how do you go about getting these three bits of information?

Demographic Information for Your Microgreens Market

We decided to gather demographic information about our potential microgreens customers in the Metro Atlanta area. You can do the same thing for your locale. We did three things:

We went looking for census data. [2]
We did pencil and paper surveys at local farmers’ markets. [3]
We could find any local microgreens sellers who would talk to us, but that was 2028.

The key demographics to look for are age, gender, income level, education, household size, etc.

Identify the neighborhoods and zip codes where there is likely demand for microgreens. For example, areas with many health-conscious professionals, families with children, and higher household incomes. We researched the locations of health food stores, specialty grocery stores, and restaurants. Then we called around and asked who was using or selling microgreens. You can do the same. Their customers are good potential buyers.

Look at demographic data from existing microgreens customers and farmers market shoppers to see age, gender, lifestyle attributes, etc. Stephen is the techie. So, he ran targeted social media polls and ads to gather insights into the demographics and interests of those engaging with content related to microgreens. (More on that in #13 of the series, The Role of Social Media in Your Microgreens Business (Branding and Marketing)).

Between the two of us, we went to numerous community events around the city to directly engage with potential customers and gather insights through conversations.

Farmers’ Markets They were usually very casual and great for networking with shoppers interested in fresh, local produce and other urban farmers. At first, we set up a small stand, offered samples of microgreens, and surveyed folks. I created a one-page flyer on radish, arugula, and broccoli microgreens. We handed them out everywhere.

Food Festivals Atlanta is full of events celebrating food and nutrition. We figured it would draw health-conscious attendees. We didn’t have enough marketing budget for but a select few. But for the ones we did, we just duplicated our formula: booth, hand out info, samples, and ask about interest in microgreens.

Health and Wellness Fairs These could have been trickier. We were dietitians or nutritionists, and we couldn’t find partners. But they do attract people interested in healthy lifestyles and nutrition. Something we would try now since I’m a board-certified Health & Wellness Coach.

Local grocery store sampling days Places like Sprouts and other small stores were great at this. Mind you, there were 10 other companies there with you sampling too. We used this more to build our email list and follow up.

Community-supported agriculture (CSA) meetups This was a new one for us. We didn’t even know such a thing until we heard a piece on NPR [6]. People interested in joining CSAs for fresh produce are prime candidates for microgreens. This turned out to be great for us.

The key is identifying events where you can directly interact with your target demographic and have meaningful conversations to understand their interests and buying preferences regarding microgreens. This hands-on research is invaluable.

Also, speak with urban farming peers to understand their customer demographics and what products sell best. A lot of people we spoke to didn’t grow microgreens. And there were a lot of “urban gardens” in the city.

We didn’t know there were more than 2,000 farms in our county alone, one of eight counties in metro Atlanta!

The key is to gather demographic insights from multiple sources to build a well-rounded profile of your ideal microgreens customers in your locale. This will inform your marketing strategy and product offerings.

One of the critical things we did was link up with friends with a thriving restaurant business. We had them test 2-3 microgreens varieties (broccoli, arugula, and radish). With our help, they tracked plate waste to see which ones people fully consumed. This helped us immensely with crop planning and delivery.

Psychographic Characteristics and Buying Behavior of Your Microgreens Market

This is even harder to get as it requires observation and a lot of testing. Here are some tips for gathering psychographic information about your potential microgreens customers:

Just observe and assess the lifestyles and values of early adopters of microgreens in other cities. For example, what stores sell microgreens? Are they in upscale neighborhoods? Are the people buying microgreens eco-conscious, value organic/non-GMO foods, vegetarian/vegan, etc.? This can indicate psychographics to target. We hired some college students to hang out at a local store and conduct surveys.

Conduct online surveys and social media polls asking about attitudes, priorities, interests, hobbies, food preferences, and values. This provides psychographic insights. Stephen was the Facebook Ads Master. We ran all kinds of quick polls.

At all the events, we captured email addresses (more on that in coming posts). Why? To send them thank you notes, yes, but also to identify why they bought microgreens. Is it for health, environmental reasons, interest in new foods, or ease of use?

Analyze the types of content microgreens fans engage with on social media. Are they interested in the environment, health trends, urban gardening tips, recipes, etc.?
Partner with a few health food stores or restaurants to promote microgreens. Survey interested customers to gather psychographic and lifestyle data.
Look at psychographic segmentation research on consumer categories like “LOHAS” (Lifestyles of Health and Sustainability), which may indicate microgreens buyers [7,8].
Read through comments on social media posts and blogs related to microgreens. This can provide insight into buyer attitudes and mindsets.
Speak with urban farming influencers to ask about the psychographics of their microgreens customers.

Again, we created a script, a set of questions we use online and during conversations at farmers’ markets and community events. We asked open-ended questions to understand the motivations and emotions behind interest in microgreens.

TOOL: Customer Survey

Here’s a BASIC CUSTOMER SURVEY you can use online (Survey Monkey):

What kinds of dishes do you use microgreens in?
What varieties of microgreens do you prefer?
Are there any varieties of microgreens you would like to see more of in the market?
How much are you willing to spend on microgreens per purchase?
Do you have any other comments or suggestions for a microgreens business?

Adjust the survey as needed to fit your specific objectives and audience better.

We did many other tactical things and will cover those later in the series.

The goal is to build a profile of the values, attitudes, interests, and lifestyles that drive buyers so you can tailor your messaging and products accordingly. Ongoing research through conversations and social listening is critical.

Once you have a detailed customer profile, it’s time to apply this knowledge to your business strategy. This could involve tailoring your microgreens varieties to the preferences of your target customers, adjusting your pricing strategy based on their willingness to pay, or deciding to use the most efficient marketing channels to reach them.

Remember, a customer profile is not a one-time task. It should be continually updated as you gather more information about your customers and market conditions change. Refining your customer profile and adjusting your business strategy will keep your microgreens business responsive to customer needs and competitive in the market.

How to Use Market Research to Inform Customer Decisions

Market research is not just a tool for understanding your customers; it’s a strategic asset that can inform every aspect of your microgreens business. From product development to marketing and sales, market research provides insights. You must have an informed choice and remain at the forefront of the competition.

We believe one of the main reasons we were successful was a business that effectively used market research. This business started with a basic understanding of our target customers – health-conscious urban dwellers. We conducted surveys of our customers’ preferences for microgreens varieties, packaging, and pricing. We also studied market trends and competitor strategies.

The insights gained from this market research were invaluable. Our customers preferred certain microgreens varieties for their unique flavors and nutritional benefits. We also found that customers would pay a premium for sustainably grown, locally sourced microgreens. Based on these insights, we tailored our product offerings, developed a premium pricing strategy, and emphasized our sustainability practices in their marketing.

But the microgreens market is dynamic, and customer preferences changed. So, we made market research an ongoing activity. We continuously collected customer feedback, monitored market trends, and adjusted our business strategy. This allowed us to stay responsive to changing customer needs and maintain our competitive edge.

Understanding your customers and the microgreens market can only be done through market research. But its value lies in how you use it to inform your business decisions. By continuously conducting market research and applying the insights to your business strategy, you can ensure your microgreens business remains customer-focused and competitive in the ever-evolving market.

Decoding the Market: Additional Key Considerations

As you embark on your journey to understand your customers and their needs, there are a few additional considerations that you should keep in mind.

Firstly, remember that market research is not a one-time activity. The market, customer preferences, and trends are constantly evolving. Therefore, it’s crucial to keep your finger on the market’s pulse and regularly update your customer profiles and strategies.

Secondly, take into account the power of direct customer feedback. While gathering data from various sources is essential, hearing directly from your customers is better. Consider conducting surveys, interviews, or informal chats to understand their needs, preferences, and pain points.

Thirdly, be open to change. The insights you gain from your market research may sometimes challenge your existing beliefs or strategies. It’s essential to be flexible and willing to adapt your business model, products, or services based on your findings.

Lastly, remember to look at the bigger picture. While it’s essential to understand your immediate market and customers, keeping an eye on global trends and developments is also beneficial. This can help you anticipate future changes and stay ahead of the curve.

In my journey with JPure Farms, these considerations shaped our business strategy and success. For instance, our regular customer feedback sessions helped us identify a growing demand for exotic microgreen varieties, leading us to expand our product range. Similarly, our continuous market research enabled us to spot the rising trend of organic produce early on, allowing us to position ourselves as a leading organic microgreens provider.

Understanding your customers is about more than just gathering data. It’s about gaining insights, challenging assumptions, and making informed decisions that drive your business forward. So, as you set out to decode your microgreens market, remember these considerations. They might be the key to your success.

In addition to these, it’s essential to maintain a positive and resilient mindset. Starting a business is a journey filled with ups and downs. There will be challenges and setbacks, but you can overcome them and move forward optimistically. Remember that every challenge is a chance for learning and growth. We will talk about this more later in the series. Discover more in this post: 13 Solutions to Mastering the Challenges of Your Microgreens Business Journey.

Share the Guide

We hope you found this guide on ‘Decoding Your Microgreens Market: Understanding Customer Needs’ insightful and valuable. If you did, we encourage you to share it with others who might benefit.

You can share it on your social media platforms or with friends and colleagues interested in the microgreens business. If you want to stay updated with more such guides and tips, consider signing up for our newsletter. We regularly share expert advice, industry trends, and practical tips to help you succeed in your microgreens business.

Also, remember to check out our other posts in the ‘Starting a Microgreens Business: What You Need to Know’ series. Each post is designed to equip you with the knowledge and tools to successfully start, grow, and scale your microgreens business.

Remember, understanding your market is just the beginning – there’s much more to explore and learn!

For a wealth of knowledge, read the post “Harnessing Technology for a Greener Future: A Guide for Microgreens Entrepreneurs.”
Discover how to grow microgreens. Read this post, “Beyond the Windowsill: Growing Microgreens on Your Balcony or Patio.“
Interested in nutrition and health? “The Beginner’s Nutritional Guide to Incredible Microgreens” to explore more about microgreens.

References

CB Insights. “Why Startups Fail: Top 12 Reasons L CB Insights.” CB Insights Research, 3 Aug. 2021, www.cbinsights.com/research/report/startup-failure-reasons-top/.
Keenan, Sean Richard. “Population Projections: Metro Atlanta to Swell to 8.6M, Become More Diverse by 2050.” Curbed Atlanta, 11 Oct. 2019, atlanta.curbed.com/2019/10/11/20909328/atlanta-population-million-regional-commission-projections.
The Impact of Social Media On Microgreens Product Knowledge And Purchase Intention. https://oa.mg/work/10.33215/sjom.v6i1.834 by Salmaa Muftiyatunnisa, Darsono Darsono, and Sapja Anantanyu, published in 2023. The paper looks at the significant impact of social media, particularly Instagram, on microgreen product knowledge and purchase intentions.
Microgreens: A Novel Food for Nutritional Security. https://oa.mg/work/10.1007/978-981-19-4590-8_7?utm_source by Gyan P. Mishra, Priti, Harsh Kumar Dikshit, Muraleedhar S. Aski, Sheela Sangwan, Tsering Stobdan, Ajeet Singh, Ranjeet Kumar, and Shelly Praveen, published in 2022. This paper comprehensively overviews microgreens as a high-value functional food and discusses their potential contribution to nutritional security.
Paraschivu, Mirela, et al. MICROGREENS -CURRENT STATUS, GLOBAL MARKET TRENDS, and FORWARD STATEMENTS. https://managementjournal.usamv.ro/pdf/vol.21_3/Art72.pdf
“Community-Supported Agriculture.” KCUR – Kansas City News and NPR, www.kcur.org/tags/community-supported-agriculture.
ethosmarketing. “Marketing to the LOHAS Food and Beverage Consumer: A Strategic Guide.” ETHOS, 12 Dec. 2017, www.ethos-marketing.com/blog/lohas-marketing-strategic-guide/.
Natural Marketing Institute. Understanding the TM LOHAS Market Report Consumer Insights into the Role of Sustainability, Health, the Environment, and Social Responsibility. Sixth Edition. 2008.
Gardens, RightFit. “How to Sell Your Microgreens.” https://Www.rightfitgardens.com/, 12 Mar. 2021, www.rightfitgardens.com/how-to-sell-your-microgreens/. Accessed 1 Aug. 2023.
Muftiyatunnisa, S., Darsono, D., & Anantanyu, S. (2023). The Impact Of Social Media On Microgreens Product Knowledge And Purchase Intention. SEISENSE Journal of Management, 6(1), 6-18. https://doi.org/10.33215/sjom.v6i1.834