Hari Sripathi shares a post on defining the ideal customer profile.
How should you define an Ideal Customer Profile?
I consulted with an eCommerce disruptor building a curated shopping experience for runners. While generating enormously positive reviews and +7 NPS scores, customer growth still stalled. In fact, they were stuck for 10 months before we met.
Their acquisition strategy was all over the place. Desiring to address a large, massive TAM, they had tried to serve everyone possible. They tried every type of spend possible. They had a team of expert marketers who had built a formidable social media presence and hyper optimized SEO.
But when asked who their customer was, pat came the reply: Everyone who wants to run!
“Everyone who wants to run” is terrible targeting. Even with a fabulous product.
We worked together for just six weeks and over the course of dozens of customer discovery sessions, ended up defining their core target audience:
“Fashion forward fathers typically with growing families, living in metro areas. They tend to have wives who are highly discerning about what they wear and demand they make responsible choices on workout equipment.”
Now, that targeting is not perfect either but it provides a few actionable insights that the startup can now leverage to actually build a growth strategy:
➡ A shared activity – i.e., Running
➡ A lifestyle – i.e., Active, metro dwellers with some fashion sense
➡ Lifestage – i.e., fatherhood
➡ Shared values – i.e., fashion forward
Above all, they shared a common catalyst – typically their spouses, who pushed them to make more fashionable choices in their athletic wear.
In just two months, this company has broken out of its stagnant growth and now grown 43% the last two months.
What are your thoughts on Ideal Customer profiles?