Three Tips to Define Your Target Market.
A few weeks ago, I met with a prospect, who wanted consulting to increase sales. “Bill” ran a boutique service business, which had grown from one (him) to a staff of 35. His company had solid infrastructure and delivered a quality service to clients. As we started to discuss his current sales volumes, I inquired how he sourced clients. He sheepishly admitted he didn’t know. I then asked him to describe his target client. He replied, “Anyone who will needs my services.”
And therein was the source of the sales problem – Bill did not have a defined target market.
As a result, he was spending a significant amount of money on broad reaching marketing in the hopes that it would reach potential buyers. Compounding that, he wasn’t tracking which marketing sources were converting into sales. It was the ‘perfect storm’ of unawareness that lead to wasted money, time and effort.
Knowledge is Power
Knowing your target market is a critical factor in any business’ success. Knowing your client profile gives you power. It’s like having a map and a compass that guides you to a treasure chest of profits. Without that, you might as well be wondering in the desert, hoping to find an oasis.
Here’s three quick tips to help you define a target market:
- Current Clients – Create a profile of your current clients. What do they do? Where are they located? How big are they? What service do they most commonly buy? What do your most profitable clients look like? You may find that your best clients buy outsourced HR services from you. They work in service businesses with less 50 employees in the San Francisco Bay Area.
- Ideal Clients – Next, consider what you’re ideal client would look like. Again, what do they do? Where are they located? How big are they? What product/service will they buy?
- Compare – If the profiles from Steps 1 and 2 match, you have a target market. If they are misaligned, look at the aspects that are off. You may need to create a marketing plan that enables you to capture a new market or find a way to reconcile the differences.
Target Market = More Sales
Back to our story, Bill and I worked together to define his target market. We also reviewed his marketing channels to ensure they were getting Bill’s brand in front of the eyes of his prospects. Bill also began actively tracking where leads were sourced along with his sales conversion rates.
The Result: One happy business owner. Bill was able to spend his marketing budget more effectively and increase sales – leading to a better bottom line.