Yes, any customer is a good customer. But some will spend more, buy more profitable products, be less of a hassle. If all your customers were those kind of customers, your business would be in a healthier, happier place, right? Customer targeting simply means moving from ‘who likes my stuff?’ to ‘who do I like selling my stuff to the best?’
Knowing the answer to that question can help you design products and packages that appeal to your target customer, thereby attracting the customers that make your business most successful.
Entertaining this process can be especially fruitful for solopreneurs, people who largely freelance or work for themselves, because as a smaller shop, attracting the right customers is absolutely key to making the business flourish financially. A bad customer (or a product/service that isn’t clearly stated and costs too much to fulfill) can kill your profit margin and cause many sleepless nights.
Luckily there are some basic exercises solopreneurs can take to narrow in on what qualities those ideal customers have. And the feedback process of testing out new marketing approaches can return results quickly.
Here are some qualities most of us desire in our customers:
- Loyalty to your brand
- Big spends
- Repeat business
- Prompt payment
- Courtesy and kindness
- Word-of-mouth promotion of your product or service
More specifics will vary based on the business:
- Is it a product or a service?
- What kind? What are the demographics of the people that buy it?
- Do you sell to end users (B to C) or another business (B to B),
- Are you online or brick and mortar?
- How do customers find you?
To identify the profile of your “best” customers, simply take a look in the rearview mirror. Who was fun to work with? Who was happiest with your work? Who came back for more? Who was most profitable for your business? Make a list of your top customers from the previous year and spend some time thinking about what they had in common. It could be any number of things: location; demographic similarities like age, gender, race or religion; industry; how they found you; the types of products you sold them. Just to name a few.
Once we identify who the best customers were and what they had in common, it’s time to actualize. If all the best buyers for your Etsy shop were in a certain age range, that can inform your marketing strategies. If a certain product has a profit margin that beats the others, let’s make more of those. If they all come from a certain industry, let’s focus our outreach there and create some marketing collateral especially for those markets.
As you can imagine, this process can be as detailed or as high-level, as quick or as time consuming as you would like. I like to focus on the fast evaluations that will give you new avenues to grow your business right now. Contact Jen@btargeted.com to find out more.