Stop Selling to Everyone: How to Find Your Perfect Customer
Trying to sell to everyone is a recipe for failure. Frazer Mackay explains why identifying your “Who” is just as important as knowing your “What”, and shares a real-life example of how changing your customer base can transform your business.
Once you understand what it is you’re good at, you need to start thinking about who it is that wants to buy it.
Is it the cost-conscious coffee buyer? Is it the person who needs something in a hurry and has no time to shop around? Is it the business that will receive value from outsourcing the supply of this product or service?
The Danger of Getting This Wrong
If you answered the “What” question inaccurately, then I’m sorry, but you are now in the process of fooling yourself, and you are probably wasting your time. Go back and sort out the “What” question before continuing.
However, if you have created a well-thought-through purpose that those around you also believe in, then you can now start thinking about the type of people and organisations that will be prepared to give you their money in exchange for what it is you do.
A Real-Life Example: The Beach Shoe Seller
I once knew a guy whose brother sold a particular type of plastic shoe from a shop near the beach. He didn’t sell much on a wet Wednesday in December, but on a warm Saturday in July, the people who came into his shop wanted to buy his stock. His pricing reflected that.
You could buy similar shoes for 20% less if you wanted to walk back into town and visit the value store. You could get the same shoes cheaper online, and possibly some people waited until they got home and ordered a pair for next time.
What made him special was both the product and the location.
The people buying his shoes were already at the beach and were not going to waste time going back into town. They wanted to take their socks off and enjoy the sand without spoiling their expensive trainers. They were not going to shop around; they were going to buy what they needed (or had forgotten to bring with them), and they were not going to be distracted from buying shoes by the small matter of cost.
This chap shut early on rainy days to pursue his hobbies, but he watched the weather forecast fervently and was always fully stocked before a warm bank holiday weekend. His purpose was to sell beach shoes on hot days, and his customers just kept coming.
A More Complex Example: Engineering Services
I worked with a business that sold professional engineering services to nearby manufacturing companies. The competition was fierce, with lots of local companies selling similar services and undercutting each other’s prices.
However, this business had developed and trained a remarkable talent pool over many years. Its investment in people and its retention of experienced staff created a resource pool that was by far the best of any of the local service providers competing in the area. Their “What” was their collective capability and experience. They offered increased reliability of service because their people were better. They offered value.
So why were they cutting their own throats to win work at deflated margins?
They hadn’t thought about “Who.”
They were better than the competition, and clients were happy to take their services at the same rates. I challenged this business to move its focus to international rather than local markets, where they could charge higher rates for the same services. The value they were adding was reflected in the rates, a premium.
Yes, there was effort required to make the change, but within a very short period, they began to see the benefits of changing their “Who.”
A business that was slowly declining in a shrinking market started to expand simply by identifying more appreciative clients in a larger market. The real irony was that as they withdrew from competing for low-cost local work, they began to be missed, and local customers started to ask them for support at the same higher rates. They were valued and appreciated.
The Right Question to Ask
I hope these examples show how broad the answer to “Who” can be. It’s not just “Who needs or wants this product/service?” It’s also “Who can we sell this product/service to?”
Maybe a better way of approaching it is: “Who do I want to sell this product/service to?”
Most importantly, the answers have to be achievable. I might want to sell my services or product to the inhabitants of another planet, but let’s face it, my ability to do so is pretty limited. Accessibility to customers is an important factor.
Your Next Step
Once you know your “What” and your “Who,” you’re ready to tackle the final question: “How?” But that’s for another blog.
For now, think carefully about who your ideal customer is. Don’t try to be everything to everyone. Find the people who will truly appreciate what you do, and focus your energy on serving them exceptionally well.