Identify and Serve the Ideal Customers for Your Business
Being aware that your customers are the lifeblood of your business, you probably make an effort to secure cutting-edge customer service, which is fantastic. But if you are like most business owners, you have spent very little time focusing on who your ideal customers are. The reality is that approximately 80 percent of business sales are usually derived from 20 percent of that business’ customers.
Now, while you could spend ample time and resources trying to be all things to all people, you can see that it may be more cost-effective to focus on the type of customer that is a perfect fit for your business.
While no product or service is catch-all for consumers, there usually is a bread-and-butter market segment that you can focus your attention on. How can you find these perfect customers to focus your efforts on? These tips will help you to better define who your target audience is.
Grasp the Concept of “the Ideal Customer”
Some business owners think that the ideal customer is any consumer who has the financial means to pay for the business’ products or services, but this does not give you a full definition to work with. In fact, if you are taking this broad approach to defining your target audience, you may be spending far more money on marketing than you need to.
Remember that not everyone will find value in your products or services. The ideal customer does have the ability to pay for your products or services, but they are also willing to pay for what you are offering: they have a need or desire for your products or services as well as the value you provide. When you redefine your marketing efforts to focus on this type of ideal customer, you may generate better results and boost profits.
Recognize the Most Lucrative Customers
If you want to make your marketing efforts as cost-effective as possible and target the right people, you need to determine the type of customer who is most profitable for your business. These may be individuals who regularly make purchases from you, and they may also be individuals who have given you referral business over the years.
Remember that referrals are a sign that the customer is satisfied with what you are offering. Focusing on these customers, rather than on one-off customers who may never make a purchase from your business again, is a better idea. So, review your existing customer list to identify who these individuals have been over the last few years.
Find Common Traits
When you have compiled a list of your most lucrative customers, review it to determine if there are any similarities between them. These details may include their age, gender, income, geographic location, or other similar factors. You can then reach out to these individuals through surveys or direct phone calls to determine their values, influences, needs and goals.
Ask about the type of experience that they want from your company but have not yet received as well as why they continue to do business with you. You may determine that different segments use your products or services for different reasons. For example, young mothers may have a strong need for the products or services you offer while older men may find value in the quality of your products or services.
Devise Customer Personas
Now that you have a more accurate idea of who your most lucrative customers are and what their motivations and desires are, you can create personas that categorize these into a few different ideal customers. You may have a single persona, or you may have as many as three or four personas. Remember that these personas may change periodically, so you may need to revise them from time to time by walking through these same steps every few months.
When you are making marketing decisions, you can then review the personas that you have created to determine how your marketing efforts will be received by your ideal customers. Ask yourself why each persona is interested in your products or services and what your marketing messages may tell them. How are you encouraging them to continue to do business with you or to refer to you their friends and family members? Your marketing strategy lies in the answer to that question.
As you can see, once you have determined who your most lucrative customers are and what they want or need from you, you can effectively market to your target audience. Making this effort can help create more focused marketing messages that produce better results for your business to enjoy in the months and years to come.
This is a simple exercise to follow, but it can be richly rewarding for all types of businesses regardless of the industry or niche you cater to. Consider taking the initial steps to learn more about your most lucrative customers today to improve your marketing efforts going forward.