Identify your Potential Customers

Identify potential customers. You can choose to see everyone as your potential customers or focus on a specific segment or group of people to be more effective.

Grouping consumers allow you to identify which group is the most appropriate target for your products.  You can efficiently and effectively use marketing activities to engage them and convert them into your customers.

First, you will need to identify how the market is divided for the product that you are providing. Think along the following variables to help you identify the different customer groups:

•    Geography : region , population, climate
•    Demographics : age, gender, income, family size, family lifecycle
•    Psychographics : lifestyle, personality, interests, habits, values
•    Behaviour : usage, loyalty, readiness to purchase, attitude towards product, buying decision
•    Benefits : social status, health, emotions

Next, evaluate these different market segments and your own goals to find out which is the most appropriate segment for your product.

•   Customer group’s overall attractiveness
  Is the potential segment attractive based on market size, growth potential, profitability, scale economies and risk?

•   Company’s objectives and resources
  Is it worth investing in this customer group given the firm’s objectives, competencies, and resources?

Think About It

Different customer segments

Consider the various credit cards in the market. What is unique about each card and who does it appeal to?

On the surface, they may look like they are all providing a similar service. In reality, each card is positioned differently even if they are issued by the same provider. Card providers have expertly segmented customer groups and customised a palette of services for each credit card to meet the needs and wants of each group.

Act on It

 Identify Your Best Customers

Now that you have identified the different groups of customers in the market, you need to select your best customers. These are customer groups with needs that you are able to meet adequately. Develop your value proposition for each of them.

Tip

Unique Selling Proposition Statement
Insert the relevant information within the brackets <  >:

<Your product or brand name> is a <product category you want to be recognised in> which provides <unique benefit that persuades purchase> to <targeted customer group> who have <unfilled need or opportunity for use>  because it is <unique and competitive characteristic, offer proof or reason>.

Develop your unique selling proposition.Then communicate the unique value and benefits of buying your product, rather than just technical specifications or basic functions. Customers want to know “what is in it for them” and whether it is reason enough to buy your product, and not your competitor’s.

To communicate your unique selling proposition, you need to address the following aspects:

• State specific benefits that come with your product. Make sure you move beyond the obvious functional benefits
• Offer a unique benefit that your competitors do not offer
• Offer a benefit that is meaningful and meets a real need, whether or not it is a need that is currently felt