10 Perfect Target Markets for an Interior Design Business

Whether you are starting a new interior design business or are an established interior designer looking to grow your business, there are essentially two markets you can target: the residential market and the commercial market.

Each of these target markets can be subdivided into smaller segments based on numerous factors like geographic location, target demographic, budget, age, gender, and more.

As you develop your business plan to enter one or both of these markets, you have to (let me repeat: have to!) be perfectly clear about who your ideal customer will be, how you will reach them, what will drive their purchase decisions, and how you will distinguish yourself from your competitors.

The first step always is defining your ideal customer. So, let’s now dive in and look at 10 target markets for an interior design business, so that you can find the one that’s perfect for you.

Finding the Perfect Target Market for an Interior Design Business

Each of these target markets can be subdivided into smaller segments based on numerous factors like geographic location, target demographic, budget, age, gender, and more.

The first step always is defining your ideal customer. So, let’s now dive in and look at 10 target markets for an interior design business, so that you can find the one that’s perfect for you.

Finding the Perfect Target Market for an Interior Design Business

One of the best ways to find the target market for an interior design business is to segment the market based on the reasons why someone would hire an interior designer.

So ask yourself: Why (and when) would a customer need an interior designer? What would motivate them to go to a professional interior designer or decorator rather than take a DIY approach? What is it that you as an interior designer will bring to the table that the client cannot do by themselves?

Use such questions to understand your potential customer’s needs and pain points. Then segment your target market based on these needs.

The segmentation of your target market based on your potential customer’s real (or perceived) needs can help you craft a marketing plan that addresses these needs. You will be able to develop a communication plan, and a social media marketing plan, as well as perform competitive analysis to carve a niche in your target market to promote your business and your brand.

So, here are the 10 top customer segments that you can target with your interior design business:

Existing Home Owners who need an interior designer to redesign their homes
New Home Owners and are looking for a specific decor
Companies that need office decor that reflects their culture and brand
Event Organizers that need interior designers who specialize in Event Design
Businesses that need a decorator for their booths at Trade Shows
Retailers who need interior designers for Store Design and Visual Merchandising
People who need unique furniture or need help with furniture layout
Realtors who need a designer to stage their properties for sale
Architects who need interior design collaboration
Environmentally-conscious clients looking for Sustainable Interior Design

Each one of these customer segments has different motivations for hiring an interior designer and so will likely require different services from an interior design firm.

Let’s take a closer look at each of these target markets for an interior design business.

#1. Existing Home Owners who need an interior designer to redesign their homes

This target market segment includes customers who are generally dissatisfied with their current home design and are looking for a significant change. Their reasons for needing an interior design service are usually practical ones.

They may be looking to redesign their home to make it more functional for their family, or they may be wanting to increase the resale value of their home.

Or they may be going through an upheaval in their life because of a divorce or the death of a spouse, or they may simply be looking to change their home design to reflect their current lifestyle better.

People in this market segment are typically willing to invest significant time and money into home decoration. They are usually at a stage in their lives where they have disposable income and so can be excellent customers for an interior design company.

#2. New Home Owners and are looking for a specific decor

This market segment includes customers who have just bought a new home or are building a new home. These people generally need help from a professional interior designer with everything from choosing the right furniture to designing the perfect layout for their home.

This target market can be divided into two sub-segments: First-time home buyers and those buying a second (or third) home.

First-time homeowners may use an interior design firm sparingly as they may not have much funds left over after purchasing their first house. Instead, they may choose to simply do home decor by themselves.

On the other hand, people who are buying a second home (or more) will usually also have money set aside for creating a dream home that they may not have had the chance to do with their first home.

First-time homeowners will often give an interior designer a free hand while more experienced homeowners who are on their second or third home may already have a clear idea about what they are looking for restricting the creativity that an interior design company can bring to the project.

One of the easiest ways to reach this target market can be through digital marketing using local SEO (eg Google My Business) or very targeted google ads or Facebook ads.

#3. Companies that need office decor that reflects their culture and brand

Companies are also a great target market for an interior design business. Many companies like their office space to reflect their culture and their brand. And they often turn to an interior designer to help create a certain look and feel for their office space.

Some companies may want a modern and sleek office design that reflects their cutting-edge product or service. Others may want a more traditional office design that gives off an air of authority and professionalism.

Still, others may be looking for an interior design that fosters productivity, collaboration, and creativity. They will often turn to an interior design firm that specializes in and has experience in office design.

#4. Event Organizers that need interior designers who specialize in Event Design

Events like trade shows, conferences, and product launches often need a custom-designed space. And so, companies that host events prefer to work with interior design firms that specialize in event design.

Event space design can include everything from the layout of the space to the furniture, lighting, and AV equipment that is used. It can include creating smaller spaces for networking and breakout sessions and larger spaces for keynote speeches and presentations.

Different events have different design requirements. For example, a trade show will need space that is conducive to networking and mingling as well as for setting up booths. On the other hand, a product launch could need a more intimate setting where people can see the product, observe it being used, or even try it out for themselves.

#5. Businesses that need a decorator for their booths at Trade Shows

Businesses that go to these events – like Trade Shows and Conferences – are also a target market for an interior design business. Booth design requires a special skill set, as they often have special requirements.

For one, interior designers have a restricted space in which to design the booth. Some booths have an open design where visitors can walk straight in and browse the company’s products, and services and read brochures or other reading material.

Other booths have a heavy dose of visual design, with eye-catching graphics and signage to draw visitors in. There are also booths that have a mix of TV screens and interactive elements for visitors to engage with. This work can also include graphic design of the booth walls, signage and materials.

Some booths also have private meeting rooms where salespeople can meet prospective clients and discuss the details of what they offer.

Finally, interior designers who specialize in Trade Show booth design often need to create a unique look and feel for the booth that follows their client’s Corporate Identity guidelines and yet is able to attract people by being professional and inviting.

Working with this segment of the market, you can often tap into much larger corporate budgets than working with residential customers like homeowners.

#6. Retailers who need interior designers for Store Design and Visual Merchandising

Store design has become increasingly important for retailers as the competition for foot traffic has gotten more intense. Stores need to not only be functional but also appealing to customers if they want them to come in and browse.

An interior designer can help a retailer with everything from the layout of the store to the design of displays, fixtures, and furniture. And so, many retailers choose to work with interior design firms that have experience in-store design.

Interior designers can also help stores with visual merchandising. Visual merchandising is the art of displaying products in a way that is appealing to customers and encourages them to buy.

It includes everything from the arrangement of products on shelves to the use of color, lighting, and props. Since a customer’s experience depends not just on the store’s design but also on the way products are displayed, many retailers will turn to interior designers who can take a more holistic approach and incorporate visual merchandising into their interior designs.

#7. People who need unique furniture or need help with furniture layout

Sometimes, a customer may hire an interior design company solely for one purpose. And that could be to help them find unique furniture for a certain room or to help them figure out the best layout for furniture that is already in their home.

For example, a customer may hire an interior designer to help them find a couch that fits into the look and feel of their living room. Or, they may want period furniture from a specific era like a Louis Philippe style, Rococo, Colonial, or 20th-century style.

Other customers may simply want old furniture refurbished. This could mean reupholstering a sofa or chair in the same fabric but with a modern twist or completely transforming an old piece with new upholstery and paint.

Additionally, interior designers can help customers rearrange the furniture in a room to make it look and feel more spacious or more comfortable, cozier, or simply to maximize the use of the space. This often involves finding ways to incorporate existing furniture in a new layout or perhaps introducing new pieces that fit into the existing layout.

#8. Realtors who need a designer to stage their properties for sale

An often overlooked segment of the market for interior designers is realtors. Many of them need a designer to stage the properties they are selling so that potential buyers can get an idea of how they can make the property their own.

When staging a property, the interior designer will typically use elements like furniture, artwork, and accessories to create an inviting visual for potential buyers. This helps the realtor give buyers an idea of how they can make a space their own, and it helps them see the potential of the property.

Interior designers can also help realtors by providing advice on specific design elements like paint colors, fixtures, and flooring. This can help make a property look more inviting and will often increase the chances of it being sold quickly.

One way you could differentiate your interior design business from your competitors is by offering a virtual visualization service on a computer or online. This would mean the realtor could show the potential buyers a virtual tour of the property with all its design elements in place. Think of how many more potential customers you could reach with this service!

#9. Architects who need interior design collaboration

A target market doesn’t always have to include end customers. Sometimes, the best way to reach an end customer is by collaborating with other businesses in the same industry.

For example, as an interior designer, one target market for you could be architects and building contractors. These professionals often require the help of an interior designer when it comes to planning and designing a building or space.

Your services could include helping architects choose the right materials and finishes, visualizing how a space will look with certain design elements in place, and creating a detailed plan for the interior of the space.

You can quickly grow your business by finding such collaborations because your business partners will be able to bring you more clients by reaching a larger target audience.

#10. Environmentally-conscious clients looking for Sustainable Interior Design

Finally, every industry has certain niche markets that can be extremely lucrative. One such market niche that interior designers can target includes environmentally-conscious clients.

These clients typically look for interior design solutions that use sustainable materials, energy-efficient lighting, and ethically-sourced furnishings. The goal is to create an interior design that not only looks great but also has minimal impact on the environment and its resources.

To these clients, you could propose solutions that use renewable materials like bamboo and cork, or you could assist them in purchasing furniture made with recycled materials, or using LED lighting to reduce energy consumption.

Offering sustainable solutions for interior design can be an excellent way that your interior design business, you can target an environmentally-conscious client base that appreciates the value of green design and wants to make their homes as eco-friendly as possible.

And they can be ideal clients as they are often willing to pay a premium to get sustainable products. Make sure to include them in your marketing strategy.

Summary

The target market for an interior design business includes both residential customers and commercial customers.

Individuals who are looking to redesign their existing homes are a prime market for interior designers.

These customers have gone through the experience of designing a home already and know what has worked for them and what has not. They usually have disposable income to upgrade their home with the help of an interior designer.

People who buy new homes – whether it is their first home or not – are also a target market for interior designers. While some of these customers may have done some research on home design, most will need help making their new house feel like a home.

Businesses are another target market for interior designers. Businesses can include anything from small businesses that need help with their office space to retailers who need help with store design.

Interior designers who specialize in event design or visual merchandising can also target businesses that host events or sell products.

Building partnerships can be a great way for an interior designer to get more clients. Realtors and architects can be ideal channel partners for an interior design business.

And finally, niches like clients looking for sustainable interior design solutions can be very lucrative for specialist designers.