Knowing your target markets is crucial to sales success. Target markets help you focus marketing campaign efforts towards the companies and people most likely to buy your products and services.
Unfortunately, most small and mid-size companies give only scant attention to mining a target market. Often times they grasp only a small, highly-segmented portion of the actual market available and lose sight of greater opportunities. You can avoid this myopia.
Profile Your Target Markets
A good method is to sketch out profiles of the four broadest markets. Create targeted lists of potential markets from the profiles. Then, apply specific lead generation techniques to convert sales cycles into repeat transactions.
1. Non-Customer Profile The Non-Customer has never been your customer. However, they are people or companies in a demographic range of variables that make them good prospects for your products or services. Because the non-customer market is so broad, you’ll have several submarkets within this category.
What are the variables for selecting target markets? Five primary segmentations account for 90% of the differences in a market.
- Standard Industrial Codes
- Type of Business
- Employee Size
2. First Time Buyer Market Profile This is a very unique relationship. It is also happens to be the most shaky one. The First Time Buyer has taken action and just bought from you, but is not committed to your company. They’ve yet to fully adopt the value of your product. The relationship is still fragile. Your primary goal is to reenter the First Time Buyer into a sales cycle to convert them into solid customers.
3. Customer Market ProfileThose who have purchased from you more than once make up the Customer Market Profile. Presumably, customers have a deeper relationship with your company than First Time Buyers. There are several good methods for dividing your customer base. Here are a few categories to help you identify the most profitable relationships:
- Frequency: how frequently the customer purchases from you.
- Recency: how recently the customer purchased from you.
- Duration: how long the customer has been purchasing from you.
- Intensity: how much the customer purchases from you.
4. Loyal Customer Market ProfileA Loyal Customer has been purchasing from you for three years or more. Loyal Customers are your best customers. They have the best track records in terms of frequency, recency, duration and intensity. They also provide positive value return in the form of testimonials and referrals. The primary goal of every business is to build loyal customers.
The Big PictureAs you can see, the four market profiles are very broad. But, once you’ve outlined them you can easily sub-divide markets for more effective targeting. When you apply them to your marketing strategy, each profile creates powerful relationship opportunities. Profiling target markets helps you paint broad strokes before applying the fine detail. So you don’t miss the big picture.