Target Markets – Who is your Customer?

Posted by kboon on February 3, 2010 under Business Building Strategies | Comments are off for this article

A while back I was at a large business gathering.  These events are usually designed for people to meet, share ideas, network and find more business.   I met about 20 people and had some great conversations, asked a lot of questions and exchanged business cards.

There was one woman who approached me and before I could even tell her what I do, she started selling me.  “You need these marketing and print materials and let me tell you we also offer design services …. Blah, blah, blah”  I tuned out.  She was determined to sell me.  We talked for a little longer but she did 99% of the talking.  After a few minutes I found a convenient excuse to get away (my beer glass was empty) and I left the conversation.

By 8am the next morning there was an email (from her) in my inbox telling me how her great products would save me money and be just what I needed to get more customers.

She assumed that I needed to save money or get more customers?

She never even asked me a question?

This is a challenge for many business entrepreneurs and sales people.  We get locked into a mindset that we need to sell.  I have done this myself.  I’ll tell a prospect what I do (an elevator pitch) and then they will comment back, “we don’t do it that way”.  And then I find myself back peddling and saying, “oh no but we can also do this… blah, blah, blah”.   Damn!  I’ve lost them and I lost my credibility because I was trying to sell when I should have been listening and developing a relationship.

When I work with clients I ask three questions:

• Who is your typical customer?
• Could you describe them to me (buyer persona)?
• What is your target market?

These questions can be difficult to answer.  I also believe they change as you get know your business, your customer and as market conditions change.  Often a client will say, “well everybody could use what I offer?” I’ll say, “Hang on!  Let’s step back!  Everyone?  Does your product cost money?”  ”Yes?” “Oh!  So you need people with money?”  Yes!

That’s a target market!  At least it’s a start.  I’ll then work with them to find ways to narrow it down even further.

In a future post I will give some examples of how to define your target market and identify your buyer persona.   Or better yet, if you have a business where you would like to run through this exercise, then connect here in the comments area, on Twitter or Linkedin.