The most important element while making an effective marketing strategy is the development of a customer profile ideal for your business. The understanding of an ideal customer will help you to build your entire business, service, and product around this defined customer group.
To be honest, for established businesses, it is quite easy to identify the target base. However, the problem lies with start-ups or businesses with very little customer experience. Like it or not, finding an ideal customer and shifting your focus entirely on a narrowly defined client from the start can save you from wandering in the dark.
Therefore, we came up with a comprehensive guide on how to identify perfect target customers for your business, no matter how big or small.
Know your Product and Service
For running a successful business, you need to have a clear understanding of your product and services in the first place. This does not mean knowing all the ins and outs of your inventory and financials. Instead, you need to see your products and services from the perspective of a customer.
This is a good time to make notes. Grab a plan and list out all the problems or concerns you will face as a customer. What would make your product special from your competitors? You will be able to answer these questions if you have the right understanding of the product.
Start targeting Smaller Markets
You have just started a business and people do not know much about you. You will have very little to offer and the resources to make a noise in the market. A good starting point is to find the people who think that you have something special to offer. The key is to find a narrow group with a very specific problem or need. There is always room to expand your reach once you gain traction.
Start discovery test sessions with the customers
As an established business, you learn largely from everyday customer interaction. In the broadband industry of the US, providers like Spectrum interact with their clients daily on their customer service. They just have to dial Spectrum customer service phone number and the company gets all the valuable feedback.
However, if you have just started, you are less likely to interact with the customers. Therefore, you need to create tests to interact with your customers. You never know, this interaction could help you in identifying the perfect customer for your product and service.
This might get a bit tricky if you are new to this. The best possible way is to offer free sample products to the ones willing to provide you feedback. This will help you visualize what the customers need, what they do not, and what works best for you. The problem with many start-ups is that they feel content with what they offer. They do not evolve and learn from experiences.
Build a Customer Profile
What is an ideal customer for your business? After doing the research, build a customer profile. Use the data you gathered during discussion test sessions containing the information on what influences their buying decisions.
Most of the information will be easily understood, such as demographics, but most of it will be obtained from social media and additional research.
Apply this Ideal Customer Approach to your Business Strategy
This is the final step. Once you have identified the ideal customer approach, implement it to all the elements of your strategy. Once you have finally discovered your initial ideal client, it will automatically influence your overall business strategy and business model.
All great customer models are focused on customers and it gives you a competitive edge if you have a clear understanding of their thought process. Moreover, this important discovery will deeply impact your pricing and distribution channels.
These simple steps will help you identify the perfect customer for your business. Imagine the implications it would have on your business as you will be thinking two steps ahead. Your business will evolve and you will learn but at the end of the day, the revenue will speak for itself.