A target market is the specific group of people a subscription business is actually trying to serve. The honest version is always narrower than founders initially want it to be — narrower targeting produces sharper messaging, higher conversion, and lower CAC.
Worked examples for Shopify subscription stores
- Specialty coffee subscription — Busy professionals aged 28–45, household income $75k+, drink 2+ cups daily, value origin transparency and roast freshness over price. Excludes occasional coffee drinkers and value-shoppers.
- Premium pet food subscription — Pet owners aged 30–55 with one or two dogs, household income $80k+, willing to pay $80–150/month for veterinarian-recommended formulas. Excludes large multi-dog households (better served by bulk retail).
- Sustainable beauty box — Women aged 25–40, eco-conscious, $40–80/month spending range on personal care, follow at least one sustainability creator on social. Excludes drugstore-brand loyalists.
- Kids' STEM activity subscription — Parents aged 32–48 with kids 6–12, household income $90k+, value supplemental education, comfortable with monthly $35–55 spend. Excludes parents seeking free or library-based alternatives.
- Niche supplement subscription — Health-conscious adults 35–60, household income $100k+, specific health goal (sleep, energy, gut health), willing to commit 90+ days to see results. Excludes one-time supplement buyers.
What makes these targets "good"
Each example shares four characteristics:
- Demographically specific — age range, income, household composition.
- Behaviorally defined — what they do (2+ cups daily, follow sustainability creators) not just who they are.
- Price-tier appropriate — the target's spending capacity matches the subscription's price point.
- Explicitly exclusionary — names who is not the target as much as who is.
Why exclusion is the hardest part
Most founders resist narrowing the target market because it feels like leaving money on the table. The opposite is true: vague targeting produces vague marketing, which converts vague audiences poorly. Targeting a specific group well — and being clear about who is not the audience — produces higher conversion rates and lower acquisition costs. For more on the strategic framework, see target market and market segmentation and target market.