One of the essential elements of running a successful online business is developing a detailed profile of the ideal customer. When you start your company, finding and serving a perfect customer will save you months of wandering in the dark, looking for a paying market. The following five steps will put you on the right path to discovering your target customer.
1 - Start with the Smallest Market Possible
You have to locate a group of customers who believe what you offer is unique. When you are first starting, you will need more resources to work with to get your name out there. Your key to initial success is to find a very narrow group and create raving fans out of them. Once you start to gain traction in your market, you can expand your reach.
2 - Create an Initial Value Hypothesis
To continue moving forward, you must stay in test and refine mode. You must create a "why us" value proposition and use that as your hypothesis. Too many people get caught up in executing their business plan when the market doesn’t care. The only thing that matters is what you discover and apply outside your office.
3 - Gain Perspective in Discovery Test Sessions
Setting up discovery test sessions with your prospects is critical to making and affirming your initial assumptions. You can join industry or trade groups or offer free samples to those willing to provide feedback. It would be best if you started talking to prospects about what they need, what they think, what works, and what doesn't. This is how you evolve your business.
4 - Create an Ideal Customer Sketch
Some information you need to create your ideal customer sketch will be commonly understood, like demographics. However, much of the data will be discovered in your test sessions and additional research. Now is the time to identify and define everything you can about your ideal target group.
5 - Strategy Model Components
Now you need to apply this new ideal customer sketch to other elements of your business strategy. Consider how it might impact your offerings, revenue streams, pricing, and distribution channels. You will also need to consider how to reach this particular market and what resources you'll need to impact the market.
Understanding your ideal customer will allow you to develop the right products and prices. Knowing your customers’ needs and wants can help you build a successful business.
Thanks for Reading
Steven Smith
