Finding your ideal customer is something every business must do. Unfortunately, most consider anyone that will buy ideal. Don’t fall into this trap.
While it’s great to make sales anywhere you can, you want to focus your marketing efforts on a very select group. Trying to sell to everyone is more trouble than it’s worth, and you can spend a lot of time, effort, and money and end up with little results. In this post, We’re going to be talking about finding your ideal customer, and why it will change the way you do business.
What defines an ideal customer:
- Consistent use of the service or product you offer:
Attracting new customers through campaigns can be costly. When you target customers that are likely to be repeat business, spending extra money to reach them is well worth it. If I sold tires, I’d run specials for people in the delivery industry. If I sold guitar strings, I would target bands, not hobbyists. - More likely to make large or profitable purchases:
This one should go without saying. Quantity, quality, and repeat business = $. This goes hand in hand with consistent use. Keep an eye out for customers making significant purchases and see if you notice any trends. Also, your ideal customer might spend less than average, but if they consistently buy something that brings in a lot of profit, they might be a better customer. - They are convenient to sell to:
Find as many ideal customers near your business before expanding your search. They are more likely to buy exclusively from you, even if your prices are a bit higher. Why do we put up with high prices in gas stations? Convenience. I don’t recommend raising your prices and marketing locally, but simply that convenience goes a long way. It’s also easier for your business to have loyal customers if you market locally. Every one likes to see businesses in our community succeed, and helping a business achieve that is a good feeling.
Why you need an ideal customer:
- You can tailor your product or service to the customer:
If you know who the ideal customer is, you can begin to customize their experience. This goes a long way towards building customer/brand loyalty and leads you to more new and repeat business. - They are easier to market to:
When you have a well defined customer, you can begin to figure things out – like where they spend their time on the web, or what groups they belong to. Once you know that, putting ads in front of them becomes cheaper and more effective, as mentioned in my next point. - They are CHEAPER to market to:
Most advertising on the web charges per click. If I spend $20 on clicks without targeting the ads, only 5% of the ads might end up being a sale. If I target a highly specific customer, the same amount of money might end up in 60% of the clicks landing sales. This also applies to print advertising. We could spend 100’s on printing fliers and putting them all over the city – when 5 or 6 strategically placed fliers might lead to more sales. In the advertising game, it’s quality over quantity. Don’t spend money on putting ads in front of people who don’t want your product or service. - They are more likely to become loyal to your brand:
If you go the extra mile to provide a service or product tailored to a specific market, it creates a personal touch. This in turn helps build brand loyalty with your customers.
Closing thoughts:
If you haven’t noticed, there are some great benefits of knowing your ideal customer. To list out the ideal customer for every industry would be impossible, so I have just laid out the basics. In my industry (Marketing, Graphic Design, etc.) we take this to the extreme, developing in-depth profiles called ‘Personas’ that are very specific. I like to joke that design and marketing is 90% research and 10% action, but in reality, it’s probably not far from the truth. Finding an ideal target market/consumer is without a doubt one of the largest problems businesses, and marketing professionals face.
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