It’s tempting to think that chasing after everyone who could possibly use your product or service gives you the greatest chance of success; however, isn’t it worth considering that there are some customer profiles more ideally suited to your business and offerings than others. These would be your “ideal customers.”
An ideal customer could be described as a person or entity that…
- has a problem that your offerings solve (if this one isn’t there, then you can bail immediately, or can you?)
- has the money, motivation and dedication to actually utilize your offering.
- shares your business perspective. In other words, wouldn’t be a big pain to do business with.
In business and economics there is a concept called the Pareto Principal (a.k.a. the Law of the Vital Few) that essentially states “80% of your sales come from 20% of your clients.” Business leaders are often surprised to realize they’ve been spending inordinate amount of time, money and effort to woo and satisfy customers who’s lifetime value is tainted by the extreme trouble they create.
It is true that in the beginning of building a new business that beggars cannot be choosers, but if you are attracting the wrong type of customer up front then either your product or your message isn’t right.
Defining your ideal customer can feel like you are excluding other audiences who might buy from you, but focusing on the right people brings clarity to your marketing efforts which ultimately leads to a more profitable (and enjoyable) business.
if you’d like more information on identifying your ideal customers, reach out to us for a chat, and possibly a cup of coffee.