Thinking all sales are equal is a pitfall for many businesses. As long as there is money coming in, all is good. And although consistent revenue is very important to the sustainability of any business venture, all sales are not created equal. There are certain customer types that are better suited to what you are offering than others.
Is your organization considering these three things when mapping out your ideal customer profile (ICP)?
Sooner or later, most businesses try to be everything to everyone – mainly because their owners have FOMO (the Fear of Missing Out). They think that by narrowing the field to certain types of customers, they will miss out on the rest. In truth, when you don’t have specific focus, your offering ends up meaning very little to almost everyone. And it is impossible to create loyalty to something that does not feel valuable to your clients.
When you don’t focus on determining your ideal/best fit customer, it is virtually impossible to come up with a repeatable and measurable process to turn prospects into buyers.
How you sell to a die-hard sports fan who is under 20 years old and has lots of discretionary income is very different than an equally enthusiastic sports fan with a young family.
Why is predictability important to sales, you ask?
It helps you create the shortest and most effective path from discovery to a sale/win. The more precisely you can define what your potential customer needs to hear from you, the better your chances of winning their business – and that of others like them.
There are a lot of factors that impact how any offering needs to be priced. Many businesses place undue importance on solely external factors like market appetite, competition etc. – primarily because those are measurable and quantifiable.
But what about YOUR cost of acquiring a new customer? Things like time spent creating marketing collateral, presentations by the sales team, servicing those potential customers and answering their questions. All these activities have definite hard costs for you as a business owner. How would you know how to price your offering if you don’t make the effort to get to know what the costs are to make it possible?
Your ICP should dictate everything from the experience you build, to the words you use, and the emotion you evoke or tap into via your marketing.
If you don’t make the effort to determine exactly who your ideal customer is, you will almost always end up short-changing your business’ success rate and growth.
So stop with the FOMO and start digging into data to define your ideal customer profile.
Come on in, the water’s fine!