A company requires customers. That’s not exactly a statement that will stop you in your tracks. It’s the first chapter of business 101. Something that might grab your attention, however, is that, in this day and age, it’s not a case of simply acquiring as many customers as possible. You need those that are the right fit for your business.
As for what is the “right customer,” this is where your solutions align with the needs of an individual. Yet it’s not just a one-way street. The customer also has to be right for you – otherwise, it could end up being a costly experience for your organization.
With the right customers, your business gains loyalty, saves money, and enhances its reputation. Do you want to enjoy these benefits? Below are five tips to ensure you choose the right customers.
Tip #1: Have a clear understanding of your brand
First of all, it’s vital you understand your brand inside out. Without having a clear definition of your brand essence – aka its core values, characteristics, and personality – you will struggle to project the image you want toward your customers.
With a defined brand essence in place, you have the precedence required to determine your target audience – along with marketing tactics and outreach strategies you’ll employ.
To determine your brand essence, there are certain questions you face. What are you trying to solve with your products or services? What type of brand image do you want to portray? What audience type will relate most to your brand image?
With these answers, you have the necessary knowledge to target the right customer base.
Tip #2: Survey your current pool of customers
Another important aspect is to consider your current customer base. By doing this, you gain a clear image of the market you appeal to with your brand. Once you dig a little deeper, you can spot common buyer characteristics, including their behaviors and requirements, and understand why aspects of your company appeal to them – and also potential customers.
There are various methods available to perform market research on your current customers. A quick survey, where you ask them questions such as how they benefited from your product/service and why they made the purchase in the first place, should provide you with the information you need.
Tip #3: Identify your best lead generation channel
As noted in the introduction, one of the main benefits of finding the right customer is that it saves you money. One of the reasons why is that, through your research, you are able to identify the lead generation channels that produce the best results for your company.
Content marketing, social media campaigns, PPC ads – there are many routes to take with lead generation. When you go with multiple channels, this can be a costly endeavor. This means when you identify the right channel – aka the one that generates the most leads – you can scale back your efforts and investment in less rewarding marketing activities.
Tip #4: Do your due diligence
On the surface, a customer may seem like the perfect fit for your company. Yet after a little digging, you realize the opposite is true. This is why it’s essential your business is prepared to vet potential clients – particularly if you’re service-oriented. In certain industries, you’ll also need to continually evaluate their activities.
This is the case with financial institutions. For example, customers can take advantage of these institutions to launder their money. This is why anti-money laundering (AML) policies are necessary. When a company utilizes AML compliance regulations, it can monitor for illegal activities and report on any suspicious activity.
Without doing the correct due diligence with customers, your business can suffer in various ways. This can range from not being paid for your services to ending up in trouble with the law.
Tip #5: Set the correct expectations
You now have a deep understanding of your customer base. You know how to target them correctly. However, when you are reaching out to potential clients and selling your business offerings, you need to set the right level of expectations.
Why is this important? If you’re not clear about what customers can expect from your products and services, this can lead to problems. They need to know exactly what to expect from your business – including what they shouldn’t expect. Selling them false promises won’t only lead to attracting the wrong type of customers, but also cause a drop in customer satisfaction levels.
By being clear about your business and solutions, this ensures both parties are on the same page. The result: you are selling the right products to the right customers.
On this topic, you also have to stand your ground. If you begin overselling, for instance, it may lead to short-term sales, but it will only harm your business in the long run.