The Goldmine from Understanding Potential Customer Need

Marketing starts with “segmentation.” It’s not enough to say you sell your product to humans. You need to know as much about those humans as you possibly can. Specifically, what parts of their humanity correlate well with the purchase of your product or service.

For example, if you sell luxury cars, you know that only a certain section of the population will be able to afford one of your vehicles. Where do these affluent people live? When do they like to shop? What kind of media do they consume (so you can advertise to them effectively)?

Who are your customers or potential customers?

Clearly identify the profile of your targeted potential customers. If there isn’t a lot of company marketing results data to hand, survey some of your early customers. Once this information is obtained, extrapolate what has been learnt.

What motivates your target customer base?

What triggers your target customer to purchase what you’re selling? Are they regular buyers, are they seasonal, do their needs vary according to the time of year. Are you offering goods or services tailored to their need?

Are they repeat, steady or one-time customers?

Are you providing continuous services for your customer? Or are you offering a once-every-30-years product, like a new roof, or basement seal? Knowing how often you expect a customer to buy will help you calculate how many customers you need to stay solvent, what kind of inventory you need to keep on hand, and what kind of marketing expenses you should anticipate.

Where will your growth come from?

You need a steady stream of new customers and to know where to find them. Do you run a referral-based business, or engage a full marketing campaign? What’s the population size of your business’s locality? Can it support your growth? If not, where will you go to chase your growth goals?

How will you differentiate yourself?

You need to know what makes you different, and why that difference is relevant to the customer. Have you priced a product more competitively? Do you offer superior value? Or a combination of both for a better experience? Depending on the specific product, there is a market for all of the above. It’s your job to know that market, and how you fit into it.

Do you have a regular plan in place to evaluate the effectiveness of your business marketing?

Adapted from an article by Mike Kappel, entrepreneur.com