It doesn’t matter what type of business you are or the type of entrepreneur you are. If you don’t understand the customers that you are trying to market your product or service to, you’re not going to be a success. Blunt? Perhaps, but it’s the most important thing for any business to understand. If you can’t understand your customers or what they want, they’re going to feel difficult to deal with, which is just not what you want when it comes to propelling yourself forward. There is no use in banging your head against a brick wall with customers when you can save yourself time and money by learning what they want and where they’re coming from.
Developing the ideal customer profile is going to be one of the most vital pieces of your business game. You can build your entire business message, vision, service and support team around this customer group and how to attract them. Start up businesses with little to no customer experience are those that need to learn how to figure out their customer base the most. Your aim should be to start cheaply with how much you charge for your product or service. As your customer base builds up, you can then start to base your costs of the value of your product and not the price, as dictated in Joe’s 4-step process. This is important advice, because the value of your product is never just going to be about the price, especially when people will pay over the odds for a service or product that they need if it’s the right one.
To be able to understand the right customer for your business, you need to find a group of people who recognise that your product or service is going to be exactly what they need. You can do this by finding the smallest market possible for your product. This may feel like it’s going to go against you, but you can trust the process that your business is going to be a successful one if you learn your customer from a smaller group first. You can start with test groups with your product or service, and as a new business, you hopefully would have held some focus groups when you did your market research for your product. You should learn all the demographics of your customer during your market research sessions, and you can build your customer profile this way.
Once you understand what your customers want and need, over time, you can adapt and change small elements of the service that you offer. A small tweak here and there is a good fix as you grow as a company and learn your product value. You will already be putting yourself out there as a new business to garner public opinion of you, but it’s how you handle that opinion that’s going to determine your success. The perfect customer is out there for your business, all you have to do is ensure that you continue to market right to them before diversifying.