A Key Step towards Business Growth
Xavier Lederer explains a key step to take to help grow your business.
You are not competing directly against your competitors, you are competing to be unique in the marketplace.
What does your most valuable prospect look like? “Probably a lot like your existing valuable customers. The easiest and most profitable growth will be achieved by adding additional customers very much like your current most valuable customers,” explains Robert Bloom in his book “The Inside Advantage.” Clients you resonate with will bring clients in the same vein. The key question is: Who is your ideal customer – how do you identify and describe them – and how will you solve their problem?
Shifting ideal customers
This wisdom is more relevant now than ever: because of Covid customers have changed. Some have disappeared, others have shifted from in-store to online, and others have increased their purchases. As a result the assumptions you had about your ideal customers may no longer be relevant. And yet: you really need to know your ideal customer if you want to grow your business.
All customers are not created equal. Your ideal customer is an existing customer (not a hypothetical one), buys from you for optimal profit and refers you to other prospects – new customers who are likely to be remarkably similar to your current, ideal customers. Once you have identified your ideal customer you can find out whether there are enough of them to reach your goals – and define whether you need to expand into an additional segment.
Your ideal customer is a breathing, living human being
The thing is: It is not enough to define your customers as a market statistic – you can’t get to know a statistic. You have a much better chance of selling to someone you really know and understand. If you can’t answer the following questions, chances are that you don’t really know your ideal customer:
How many customers generate 80% of my gross margin, and who are they?
What is the name of the decision-makers of my top 10 clients, and how much do I know the socio-demographic (e.g. age, gender, background) and psychographic (e.g. lifestyle, risk attitude) profile of each of them?
How much do I know the needs and fears of each of these decision-makers? What are their desires? What are their pressures?
How much do I understand the problem of my top 10 customers – not just their surface problem, but also their root problem? Why do they have this problem? Why are they coming to me (and not to my competitors) to solve their problem?
Key points include:
- Shifting ideal customers
- Brand promise
- Key demographics
Read the full article, WANT TO GROW YOUR COMPANY? START WITH WHO, on AmbroseGrowth.com.