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Identifying Your Ideal Customer

Welcome to Identifying Your Ideal Customer – Part 6 of our series on The Power of Strategic Planning.

Introduction:

A significant portion of your strategic plan will be focused on marketing, pinpointing your ideal customer, and comprehending their pain points.  In part 6 of this series, we will delve into the art of identifying your ideal customer and gaining a deep understanding of their pain points, both of which are essential for crafting compelling marketing messages.  With the number of ads American’s are exposed to each day (between 6,000 and 10,000) it only makes sense to make sure this part of your plan is rock solid.

Step 1: Defining Your Ideal Customer

The foundation of any effective marketing campaign is a crystal-clear definition of your ideal customer. This involves creating detailed buyer personas or profiles that represent the individuals you are targeting. Consider these key elements when defining your ideal customer:

  1. Demographics: Start with the basics, such as age, gender, location, and income. These fundamental characteristics serve as your starting point.
  2. Psychographics: Delve into their lifestyle, values, interests, and behaviors. What drives them? What are their hobbies? What are their core values and motivations?

Step 2: Research Your Audience

To build accurate and meaningful buyer personas, you must conduct thorough research. Here are some valuable research methods to consider:

  1. Surveys and Questionnaires: Gather insights directly from your existing customers or prospective audience through surveys and questionnaires.  This is also a great way to build out your marketing list to be used during the launch of your marketing campaign.  We will discuss this in Part 7 of this series.
  2. Social Media Listening: Monitor social media platforms to discern the topics and issues that resonate with your potential customers.  The best way to get exposed to your potential customers is to engage with them on social media sites of competitors or industry influencers.  By being active on feeds that already have large numbers of followers you can really discern the problems this audience needs solutions to and craft a solution that will give them what they are looking for.
  3. Competitor Analysis: Study your competitors to gain insights into their customer base and discover any unmet needs or underserved pain points.  Read the reviews and look for opportunities to do it better.

Step 3: Understanding Your Ideal Customers Pain Points

Understanding the pain points of your ideal customer is paramount in creating a marketing strategy that truly connects. What is the problem they currently have that they need solutions for? Here’s how to gain insight into their challenges:

  1. Surveys and Interviews: Conduct surveys or one-on-one interviews to probe deeper into the specific problems or challenges your ideal customers encounter in their lives or work.  LinkedIn and other social media platforms allow direct polling that can be very helpful when testing potential solutions to a problem.
  2. Customer Feedback: Pay close attention to feedback from your current customers and that of your competitors. What issues or concerns do they frequently raise?
  3. Online Forums and Communities: Explore relevant online forums and communities where your target audience congregates. Analyze discussions and comments to uncover recurring pain points.  Alignable is the perfect place to ask direct questions of a target audience or listen to the questions asked by others.  Local Mom groups and community forums like Next Door often provide great feedback on what people are having issues with or need solutions too.
  4. Keyword Research: Use keyword research tools like Spyfu or Google to identify the most common search queries related to your industry or niche. These queries often reflect the pain points people are seeking solutions for.

Conclusion:

Identifying your ideal customer and gaining insight into their pain points form the bedrock of a successful marketing strategy which we will cover in more detail in part 7 of this series. When you deeply understand the challenges and issues that your target audience faces, you can tailor your offerings and marketing messaging to offer genuine solutions that resonate with them. This understanding is a dynamic process that evolves as your audience’s needs change, making it an ongoing effort that is well worth the investment. Stop just endlessly posting and engage with your social media audience, you might just uncover the answers you have been looking for.  Ultimately, by empathizing with your ideal customers and addressing their pain points, you pave the way for stronger engagement, brand loyalty, and business growth.  For help with your business roadmap reach out any time at TEC Resource Center or build your own roadmap with our newly launch Business Roadmap software.  Until next time we wish you much success in whatever path you choose.

 

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From SWOT Analysis to Strategy.

Welcome to Part 5 of our series on The Power of Strategic Planning.

Introduction

In the ever-evolving landscape of the business world, success is often determined by the quality of strategic planning. Developing a sound strategy is akin to charting a course through uncharted waters, where every decision counts. One invaluable tool that has stood the test of time in this regard is the SWOT analysis. SWOT, an acronym for Strengths, Weaknesses, Opportunities, and Threats, is a systematic framework for evaluating these critical aspects of a business. In this blog, we’ll explore the importance of SWOT analysis when determining a business strategy.

1. Identifying Strengths

The first step in a SWOT analysis is to identify and catalog an organization’s strengths. These are internal factors that give a business a competitive edge. They could be a well-established brand, a talented workforce, cutting-edge technology, or efficient processes. Recognizing these strengths is essential because they form the foundation upon which a successful strategy is built. By understanding what sets the company apart from the competition, leaders can leverage these strengths to capitalize on opportunities and mitigate weaknesses.  In part 4 of this series, we covered the importance of a solid market analysis with the consideration of competitive intelligence playing a crucial role in the process.  If possible, you want to avoid the me-too strategy by innovating a new approach or delivery system that looks and feels different to your target audience a capitalizes on your strengths.

2. Acknowledging Weaknesses

Every business has its weaknesses and acknowledging them is the second step in a SWOT analysis. These are internal factors that hinder a business’s performance. Common weaknesses might include an outdated infrastructure, a lack of skilled employees, limited resources, or inefficient procedures. Identifying weaknesses is crucial because it allows businesses to take steps to address these issues proactively. Ignoring weaknesses can lead to costly mistakes and missed opportunities.  Weaknesses can be turned into strengths if they are presented to the customer correctly.  Being different from your larger competitor by pointing out your ability to focus more directly on the customer that comes through your door might be very well received by the customer who has just spent hours trying to navigate the automated phone system of the behemoth of your industry.

In a blog by Zen Business, they point out 10 advantages that a small business has over its larger competitor.

  • Faster Decision-Making Process
  • Targeting Niche Markets
  • Empower and Developing Your Team
  • Personalize Customer Service
  • The Ability for the Customer to Access Leaders Directly
  • Prioritizing Your Local Community
  • Innovate Faster – Giving the Customer What They Actually Want.
  • Make Your Mark
  • Focus on a Specialization
  • Pivot Quickly and Effectively

Very often the larger corporation leaves big gaps in the market available to its small competitors because this customer segment is just not large enough to move their revenue needle.  When I ran a smaller clinical engineering company and competed with the likes of GE and Aramark, we had a tag line of -Large Enough to Serve you and Small Enough to Care.  We were focusing on the larger companies’ inability to be flexible enough to really address the needs of the individual client.  This strategy worked extremely well and immediately identified who we were as a company.

3. ‘O’ in SWOT analysis – Capitalizing on Opportunities

The ‘O’ in SWOT analysis stands for Opportunities, which are external factors that could benefit a business. These might include market trends, technological advancements, or emerging consumer needs. By recognizing opportunities, organizations can tailor their strategies to capitalize on them. For example, a company with a strong online presence might seize the opportunity to expand its e-commerce offerings in response to a growing trend in online shopping.  The e-commerce market was created when someone realized customers might prefer to shop from home rather than spend their spare time going to the mall.  Amazon and Shopify identified this market trend and were able to capitalize on it.

4. ‘T’ in SWOT analysis – Mitigating Threats

The ‘T’ in SWOT analysis represents Threats, which are external factors that could harm a business. These can include economic downturns, regulatory changes, industry shrinkage, or aggressive competitors. Identifying threats is crucial because it allows organizations to develop contingency plans and strategies to mitigate potential risks. By being proactive, businesses can reduce the impact of threats and maintain a competitive position in the market.  We spoke about the inability of the big box department store to identify and react to the e-commerce explosion and the results were devastating.  The plan you are creating here is not a one-and-done process.  Stay away from the “We have always done it this way” attitude.  This is something you should review regularly and adjust as opportunities and threats are identified.  As a business advisor, the first question I ask is to see a company’s business roadmap.  In some cases, the business owner reaches for the bookshelf and blows the dust off something they spent money on years ago and never read again.  This is far better than the blank stare that tells me one was never created.  Your business roadmap should be a living document, and everyone in the organization should be aligned with the objectives detailed in it.

5. Holistic Strategic Planning

One of the key benefits of SWOT analysis is that it encourages a holistic approach to strategic planning. By considering both internal and external factors, businesses can develop well-rounded strategies that consider their unique circumstances. This comprehensive view helps leaders make informed decisions and allocate resources effectively.

6. Enhancing Decision-Making

SWOT analysis serves as a decision-making tool. It provides a structured framework for evaluating options and making choices that align with an organization’s strengths, weaknesses, opportunities, and threats. When faced with multiple strategic alternatives, leaders can use the insights gained from SWOT analysis to prioritize and select the most suitable course of action.

7. Adaptability in a Dynamic Environment

In today’s rapidly changing business environment, adaptability is key to survival. SWOT analysis is not a one-time exercise but an ongoing process. Regularly revisiting and updating the analysis helps businesses stay agile and responsive to changes in their industry and market conditions. This adaptability is essential for long-term success.  We have all heard the expression – you should work on the business rather than working in the business.  For many, it is not always possible to only focus on the business because they are required to work in the day-to-day operation of the organization.  However, dedicating a portion of your time each week, month, and year to your strategy is essential.  Build your business roadmap with a trusted business advisor or by utilizing a self-paced tool that helps you build it on your own (Business Road Map Tool) and then revisit it regularly.  When I say on your own, I mean you should include the entire team.  Often your employee’s view of things is a bit clearer than yours.

Conclusion

In the world of business strategy, the SWOT analysis is an indispensable tool. It empowers organizations to identify their strengths and weaknesses, recognize opportunities, and anticipate and mitigate threats. By conducting a SWOT analysis, businesses can develop informed, well-rounded strategies that position them for success in a dynamic and competitive marketplace. It’s not just a static assessment; it’s a dynamic process that should be an integral part of any strategic planning effort. So, if you’re charting a course for your business’s future, make sure you have your SWOT analysis in hand—it’s the compass that will help guide you to success.  If you have not already begun this journey feel free to reach out to us for assistance, or leverage our Roadmap tool by clicking this link – Business Road Map Tool

 

 

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Leveraging Your Existing Customer Relationships

Strategic Planning

 

Your existing customers offer you the quickest and least expensive way to grow your company.  As we have covered in past articles one of the five focus areas for every business is the number of transactions you can achieve with each of your clients.  We all know how hard and expensive it is to attract a new lead and then convert them to a loyal and trusting customer.  It would be a mistake not to make the most out of your hard-earned relationship.  Today we will explore a few strategies to increase the number of transactions you do with your customers each year.

Cross Selling

We see this effectively used every time we go to a fast-food restaurant.  You order a burger and a soda, and you are instantly asked if you want fries with that.  A more subtle example is the store owner who places candy by the checkout register knowing well that Mom and Dad will succumb to the desires of the kids.  Shopify actually calls their upsell and cross sell option the candy rack.  As soon as you click the add to cart button, offers are displayed in the form of a pop-up, upselling and cross selling to the customer before they leave the site.  This is a proven strategy for increasing the number of transactions a customer will make during and after their initial purchase.

So, let’s say you are a hair salon and you have contracted with some hair product companies to display their products in your shop.  Most owners do this.  The question is will anyone ask the customer if they would like to purchase this product during their visit?  If you don’t ask, they will not buy.  If you do, it turns out that 34% of the time they will purchase an additional or alternative (more expensive) product at the time of purchase if they are asked.  Better still, open an on-line store that allows that customer to acquire the products they need to keep their hair style looking good between visits.  This store might just produce more revenue and definitely profit for the business than the shop itself!  By the way while shopping they will be reminded that it is time to book their next appointment.

Business Alliances

In the case of the hair salon, the distributor of the hair products sold in the shop is a good example of a business alliance partner.  An arrangement or contract between two parties to share in the revenue sold by the other party.  This is straight forward when it comes to distribution arrangements but what about other alliances.

Take the landscaping company who forms a relationship with an outdoor light company to help accent the beautiful plantings they install.  They don’t have the expertise to install the lighting so they find a company of similar quality that they can form a partnership with and share in the revenue added to the original project.  Think about your business.  Is there a product or service that your customer might buy from you that adds to the value of what you bring the client?

The painter who added window coverings (blinds, shades, curtains…) to his everyday offering increased the revenue of his company by 60% without spending a single cent on marketing.  They simply added this service as part of their normal quoting process.  The window covering vendor was thrilled to have met the painter and has since added many painters to his list of partners.

By the way, the profit of the painting job was increase exponentially because the painter added nothing in cost and a significant amount in revenue by forming the alliance.

Bolt-on Business

As a company grows it may make sense to add synergistic service units to the business.  I will often recommend a franchise business to an owner as an easy way to bolt-on additional revenue opportunities with very little up-front cost.

Take the case of the property manager who is responsible for renting and maintaining the properties for his customers.  They manage everything from the cleaning of the properties to the renovations to keep things looking new and fresh.  As a new business owner, it doesn’t make sense to do anything but find properties they can manage for a fee.  But as the business grows there is an opportunity to add multiple revenue streams by bolting on small low-cost franchises that will perform the cleaning, or painting or renovation work.  Obviously, the owner could go out and buy an existing business or start his own division in any of these categories but then he/she would have to learn the process of managing all these different operations.  With a franchise they come with the training, policies, and know how to run each business all for the low price of a franchise fee (normally between $10,000 and $50,000).

Often this strategy is proceeded by business alliances like those discussed above.  In this case it may be more appropriate to form a partnership or even an agreement to merge the two companies.  As a business owner you should never feel as if you are too small to think about these types of arrangements. I have seen many a large company formed by the merger of many smaller ones.  One word of caution when merging or joining organizations.  Culture is a very significant part of any company and if both parties don’t share the same philosophies when it comes to how things are done it can be disastrous for everyone involved.

Conclusion

As a business owner you know that there is nothing more important than protecting and nurturing the relationship you have with your customers.  There is no better way to do this than to have multiple touchpoints with that customer.  Leveraging those relationships by giving them multiple ways and multiple opportunities to do business with you is a win-win for both you and the customer.  They get to buy a service they need from someone they already trust, and you get to strengthen your bond with them by once again servicing them well.  Call me and we can brainstorm ways for you to leverage your relationship with your

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The Business Synergy Strategy

Synergy

Congratulations, you have created a successful business that is well respected by your customer demographic, but now what?  How do you add value to your business without diluting your current marketing and sales efforts?  This is a question that many companies ask themselves at some point in the evolution of the organization.

According to CleverISM.com, Synergy in business is “defined as the increase in competitiveness and cash flows beyond what the two companies are expected to accomplish if they maintain standalone operations.”  This is sometimes expressed as 1+1=3.  Two profitable companies when combined results in a better and stronger company.  This is easiest to understand in the example of the car wash that sells floor mats, air fresheners, and other accessories to their clients on the way to the cash register.  The car wash would be profitable without the accessories sales, but when combined the bottom line is exponentially increased.

This strategy works just as well when two separate companies are combined through a strategic acquisition.  That is if you are large enough to consider that kind of thing.  If not, you might consider starting a complementary business that focuses on the same customer demographic.  But starting a new business that you are unfamiliar with might distract you from what you are already doing and slow the growth of your existing business during the development process.

An alternative to starting a new business can be found in the franchise world.  Franchising offers you a proven model to a business that can be added to what you are already doing with very little cost.  If you are a successful landscaper and add a mosquito spraying franchise to the mix you could significantly increase your offering to your customer base with very little added expense – 1+1=3!  Many franchise brands will in fact combine synergistic franchise concepts under one roof in the hopes that their franchisees will take advantage of the synergies as they grow.

If you are a successful small business owner, now is the time to think about a strategy that will allow you to leverage the synergies of other companies be it by acquisition, partnership, or franchising that will allow you to grow your bottom line without added significant operating costs.

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