26 Oct Who Is Your Ideal Customer and Why Does It Matter?
If you are a business owner, you know how frustrating it is to chase unproductive leads. What if you had a precise way of telling which customer is ready to buy and which one is not? It doesn’t take magic to identify your ideal customer. You simply need to create an ideal customer profile (ICP) together with buyer personas. Once you’ve pegged the right customer for your business, you can narrow down how to reach him or her.
What Is an Ideal Customer Profile?
An ideal customer profile is a way of defining which individuals and companies are best suited to benefit from your product.
For instance, if your business involves providing HVAC services, you could define your ideal customer as someone at a household, small business establishment, or large office complex. They also need to be located in your locality to avoid unnecessary travel expenses.
While it may seem that being specific as to the type of customer you are targeting is limiting, it will help you to better focus your marketing strategies. You will be able to specify exactly which kind of business and individual customers you are targeting. In short, you will know which customers need you, can afford you, and can work with you. You’ll avoid chasing down false leads. Your goal is quality not merely quantity.
Why Does It Matter?
An ideal customer profile is important when it comes to helping you know when to say yes or no to certain customers. If a customer is a poor fit, you can feel confident to say no in certain situations to save you money, time, and aggravation.
It will also help you to better decide which customer to say yes to. There is nothing as empowering as saying yes to the right customers. Not only does it make the sales cycle shorter, but it also makes for a pleasurable transaction. It’s also easy to develop the right messaging and strategies if you have an accurate customer profile.
3 Simple Steps for Developing an Ideal Customer Profile
Developing an ideal customer profile for your business is easy. The following three steps will guide you through the process:
Step 1. Define Yourself
Before you even narrow down the type of client you want, you have to define the type of business you are. You must understand your company in terms of its strengths, weaknesses, capabilities, and systems. What distinguishes your company from the rest? From this, you will know how to position your content, target sales strategies, and enter into new markets.
Step 2. Define Your Buyers
What is your target market and what kind of buyer personas are you looking for? You’re not creating an ultimate client wishlist, you’re basing this on reality. You’ll need a good understanding of your current target market. Think of your top ten most profitable clients as you develop your profile, and consider the following:
- Their company size (quantified by number of customers, employees, revenue, etc.).
- Their industry
- Their geographical location
- Other buyer attributes such as what motivates them, their hangouts, what they read online or offline, their online searches, etc.
- What makes them great to work with (move quickly, pay on time, provide valuable feedback, interesting projects, high ROI, etc.)
Step 3. Narrow Down to Specific Markets
Now it’s time to use your ideal customer profile to create buyer personas that define who the decision makers or researchers in the target companies are. This will help you understand your customers’ motivations, their pain points, and how they reach buying decisions so you can target them effectively. To develop effective buyer personas, consider the following:
- Typical titles/roles
- Pain points/challenges
- Sources of information on products/services
- Best means of communication
- Main challenges
- What they are likely to look for while engaging with you
With these factors in mind, you will be able to better target your best buyers with the right messaging, transforming your ideal customer profile into ideal customers.
If you’re ready to start targeting your ideal customer, LightHouse Graphics would love to work with you. We specialize in graphic design, website design, social media management, and content creation, all with your customer in mind. Contact us to get started today.