Who is your ideal client, and why should you care? In many cases we look at sales as something that just needs to happen. To some degree, we really don’t care who is buying our product or service, as long as they’re willing and able to pay for it. Out of all your clients, you’ll find that some of them value your products and services more that others. Additionally, you will value the business from some clients more that others. Why does this matter? Because, those are your ideal clients.
Ideal clients are evidence of the quintessential win-win. They are customers that value your products and services the most and the ones that are most profitable for your company. It’s a little like the 80/20 rule where 80% of your profit comes from 20% of your clients. Typically, once we identify our ideal client, and the definition remains essentially unchanged over time. However, market disruptions can alter that definition. The company that made buggy whips in the 1800’s found that as they entered the 20th century the demand for their product fell. If those companies adapted their products and services to the new environment, they found that the definition of their ideal client also changed. The same thing happens following any disruption in your business.
When this occurs, you need to reaffirm your ideal client. In order to do this, you need to follow a few simple steps:
- Define your current products and/or services.
Are your products the same, or different, than prior to the disruption? If they’re different, will you continue to deliver this product or service into the future? In evaluating new products, services or delivery methods determine if the demand for these will continue into the future. If so, then answer the questions, “Do we have the skills, resource and desire to compete with this new product or service and “Can we generate an appropriate margin from the sales?”. If so, then it’s time to update the business plan, and that includes your goals and your market.
- Update your goals.
Based upon a decision to continue with this new market approach, review your existing goals and incorporate the impact of this new direction. Make sure that you establish these goals as SMART (Specific, Measurable, Attainable, Relevant and Time Bound) goals and assign individuals within the organization to be responsible and accountable for their achievement.
- Build or adapt your Ideal Client profile.
Your new product or service definition, as well as your goals will impact the definition of you Ideal Client. In order to define this Ideal Client, ask yourself a few questions:
- Who is purchasing from you in this new environment?
- What do they need or value?
- What benefits do they get?
- What is their buying process like?
- How do we best reach them?
- In essence, you’re trying to answer, “What are their:
- Geographics, and
- Behavioral Characteristics?”
Once you’ve answered these questions in detail you have identified your Ideal Client. Now approach the market with a fresh perspective and grow your business in this new environment.
To learn more or request a free Strategic Business Assessment contact me at https://strategicorientation.com/contact/.