Having reached the point where you have regular customers is great, however it can also be risky. Being in a position where the customers have chosen us, rather than the other way around, may create a situation where we have the “wrong” customers. Wrong in the sense that they are not as attractive and profitable as other potential customers. So how do we find out who are the right customers for our particular business? See the Full Article
One way of identifying potential new customer groups, whether you already have a lot of customers or not, is to make a systematic segmentation of potential customers in your market.
“Segmentation can almost become a treasure hunt for new, potential customers who you can service in new, creative ways.”
There are many advantages to segmenting the market into similar categories, and then using these as the basis for the business’ sales and marketing efforts. The process allows you to:
• Discover new customers we might never have considered before
• Highlight previously unexplored areas of the market
• Prioritize the absolutely best customers for the business
• Treat customers differently and adjust our products and marketing
There is a wide array of criteria that we can use to divide our market into different customer segments. This is illustrated in the “A World of Customers” chart below that can be used to map the segmentation based on a customer’s demographic, geography, buying behavior and/or psychology.
Choosing the right customer segments is one of the central decisions, in designing or redesigning a business, not least, when a business is growing. It is a good idea to take a critical look at the customer database from time to time, to see which customer segments dominate and which ones are missing. For a lot of startup businesses, there are often more and other customers than you might think.
This blog condenses some the information and business advice found in an article on “The Best Customers – How to Build a Valuable Customer Portfolio”. It is taken with permission from a Series of Articles published by GrowthWheel with the goal of providing inspiration and ideas that start-up and growth companies can use. The MEV Innovation Centre uses GrowthWheel as a visual tool to help companies develop, design and improve their businesses taking a 360 degree perspective. It works as an alternative to the conventional business plan by helping start-ups and growth companies make decisions and take action.
The MEV Innovation Centre is a certified GrowthWheel business advisor. If you would like a full copy of the article and related worksheets, please send us an email at MEVInnovation@milton.ca. For more information on GrowthWheel or to schedule time with one of our business advisors, again send us an email