Who
Is Your Customer?
By Debbie Allen, All
Rights Reserved
Just
as important as opening your eyes to the image your business creates is
focusing on who your customer is.
You can be making great impressions, but if the wrong audience is
noticing it won’t do you much good.
When
I owned two retail stores back in the 80s I could do not wrong.
My business kept growing and my competition was minimal.
Back then you could buy like crazy, load up your stores with a vast
variety of inventory, do a fair job with merchandising, and customers of
all ages and sizes would come flocking in to buy and buy. Those were the days, but times are different now.
As
a business grows and changes, so does its customer base. As I speak with
business owners in my audiences from across the world, I am constantly
amazed that many cannot articulate to me who their core customer is. Some
have been successful for years, but they are wondering why they are now
losing their edge and, even worse, losing customers to the growing
competition. These businesses
are oblivious to change. They
continue to do things the same old way instead of adjusting their
marketing efforts to keep up with changes in the industry and, more
importantly, the needs of their customers.
A
retail store I recently consulted with was throwing lots of money away by
advertising in the same newspapers with the same ineffective ads they had
been using for years. When we
focused on rediscovering their customer base, it was clear why the
advertising campaign was no longer working. Over the years customers had aged and had different needs and
concerns. The store
redirected their advertising and marketing efforts to target the customer.
These new marketing efforts afforded almost immediate results and
turned the business in a much more focused direction.
Tom
Peters, author and management guru, said in Design and Display
magazine: “Change is only going to accelerate from here on out.”
According to Peters, the issue is not learning new things; it is
forgetting the old ones. High quality alone is not enough to set a company
apart in this world of high standards.
The company needs to stand out as unique in doing what it does.
Furthermore, Peters points out, with the Internet, we have entered
the age of customer control. “Don’t
just listen to the consumer and react; lead the consumer,” says Peters.
Gaining Insight into Your Customers
To lead your consumer into the future, you need to first know who they
are. To gain insight into
your own specific situation and to re‑focus on your main customer,
ask yourself the following important and revealing questions. For the best
results, be brutally honest with yourself.
1.
What is the current state of your customer base?
Do
you have a strong understanding of your customer?
Can you describe them by age, gender, sex, race, income level,
needs, and concerns? If you can, are you developing your marketing to fit their
needs and emotions? Is your
existing customer base giving you increasing or decreasing sales? Do you need more customers or do you need customers who spend
more money?
Every
business has good customers, and every business has customers who you
wish you could fire. What is important is to focus on the profile of your best
customers and market your business to them.
Those good customers may want more quality, higher-end products,
or different services than you currently offer.
Re‑evaluate the needs of your best customers and focus all
your marketing efforts around those needs.
2.
Who is your competition?
Business
would be so easy if we had no competition.
In fact, I doubt you would be reading this book if business was
that easy. If you don’t already know who your competition is, start
shopping around. Look at
the competition from many different angles, not just those places that
are directly competitive. Honestly
evaluating your competition can teach you many lessons about your own
business and where you can improve.
If
you do know who your competition is, start snooping around to discover
what they are doing that is working.
They may not have a perfect image or the best service either, but
they must be doing something right or they wouldn’t be in
business.
Is
your competition doing the same things you are doing?
Are you doing them better? Can
you do them to benefit your customers even more?
3.
Would you buy a pair of gym shoes in a formal wear store?
What
business are you really in? Is
your business focused, or are you trying to be all things to all people?
This is a common mistake among retailers.
Many try to carry everything for everyone in fear of losing a
customer. This will end up
costing you much more in lost sales in the long run.
There is no way you can be an expert or niche your business with
a large diversity of products.
Do what you do well, and let your customer know what you
specialize in.
To
focus on your key areas study your sales reports.
What areas are the weakest and slowest moving in the business?
Figure out what you sell and do best and leave the rest to
someone else. When you
pinpoint your expertise, you will naturally excel at that niche, build a
stronger customer base; move your merchandise or services quicker, and
best of all, increase your profits.
4.
What is your USP?
What
is your Unique Selling Proposition? In your customers’ eyes, what
makes you different from all of the competition?
What are you offering that no one else does? Is your business
just in the inventory or service business?
Or are you in the satisfaction business?
“Doing
a common thing uncommonly well brings success.”
~ Anonymous
Southwest
Airlines is successful not only because they offer the most competitive
prices, but also because customers know what to expect from them:
They are a low-priced, reliable airlines that delivers their
service with fun and uniqueness. So
they just hand out peanuts? Who
really likes airline food anyway? I
never eat that stuff. I fly
Southwest because they make it easy, they appreciate my business, and
they run on time. Southwest has focused on what is most important to
their customers and let go of the rest.
5.
What are your customers thinking?
The
right side of the brain creates. It
is the part of the brain that recognizes trends and visual responses.
The left side of the brain is logical; it calculates and stores
visual information. It takes those visual details into account and
systematically evaluates your image and professionalism.
When your image brings the left-brain and the right-brain
together, the customer sees your products and/or services as something
they need. You have touched all of their senses and responses, so they
BUY.
When
a customer enters your business they instantly start to use the right
side of the brain to take in visual stimulation.
This stimulation creates feelings and emotions in your customer.
They form their own opinion of your establishment and decide
whether or not to stay and discover more about your business. This is where your creative and professional business image
plays a strong role in keeping the customers’ interest.
They
use the left side of the brain to compile the facts they need to
understand your products and/or services.
With this education the customer analyzes their personal needs to
find a fit. If there is a
logical fit and a need will be satisfied, the customer decides to make a
purchase.
6.
Are you offering the services and products your customers want?
Always
keep your customers in mind with every decision you make.
Everything you do should satisfy their needs.
For example, if they work in the city and commute, stay open late
a few nights so that they can shop when they get home.
Or open up very early one day a week. Adjust your business to
their lifestyle, and try different things to accommodate it.
Are
the products or inventory you carry what your customers are looking for,
or do they actually meet your needs and emotions?
Are you ahead of the competition, a trendsetter within your
industry? Are your customers looking for you to be a trendsetter, or do
they want solid, enduring choices?
Retail clothing stores often miss out by jumping in at the tail
end of a trend instead of taking chances and setting a trend. A customer who is looking for the latest will always perceive
them as a follower. On the
other hand, some buyers purchase inventory they find exciting and forget
about what their customers want. This
may seem crazy but it is sometimes hard to set aside your emotions and
focus only on the customers’ needs.
"I
realized that it's not about what you think is cool.
You've got to listen to what consumers want."
~
Bob Pittman
7.
How do you make your customers see they need to do business with
you?
You
must grab customer’s attention by cutting through the clutter of their
lives with blazing simplicity. It
is crucial to concentrate on a core business and a core customer.
Your image must be the connection between the two.
The customer must instantly perceive who you are and what you are
about. You will know when
you have the right image because it feels right for everything you do.
It is truly what your business is all about.
8.
Where are your customers going?
Are
there some areas of your business that customers avoid?
Areas where there is little or no traffic?
Study traffic patterns. Does
anything impede the customers’ way?
Do they have to dodge counters, displays, or fixtures?
A
detailed study of the areas inside your business may be a real eye-opener.
Take some time to evaluate how your customers are entering and
walking around your business. Is
the traffic pattern easy to navigate and does it make your customers
feel welcome? If not, work
on making the necessary changes and re-evaluate your business again
after the traffic patterns have been adjusted.
9.
What makes your customers buy?
“Shoppers
need to be transformed, ‘converted’ into buyers.
Marketing, advertising, promotion, and location can bring
shoppers in, but then it’s the job of the merchandise, the employees,
and the store itself to turn them into buyers.”
-
Paco Underhill, author of Why We Buy (Simon and
Schuster, 1999)
Your
marketing campaign helps to build traffic to your business.
What you do with that traffic is most important.
Just because they call or come into your business does not
guarantee a sale. By
focusing on your business from the inside and seeing the details that
help a customer make a buying decision you will begin to transform more
“lookers” into “buyers.” Studies show that customers buy when they are visually
stimulated and informed. The
product and/or service does not necessarily always fit their needs since
they buy out of impulse as well. That
is why doing your best to convert shoppers through your merchandise;
knowledge of the product and/or service, visual layout and display, and
employees is key to making more sales.
10.
Do you need to create a whole new image that focuses on your
rediscovered customer base?
If
you are considering repositioning, make a detailed focus plan.
You don’t want to risk alienating old customers or confusing
new ones. An image change is a leap of faith. Make sure your good
customers can make that leap with you.
By
answering these questions you have begun to refocus and re-evaluate your
customer base and their needs. From
your responses you will learn how to adjust and meet the needs of your
core customer base. You will discover what makes your business unique and why
customers want to do business with you instead of your competition.
Then, and only then, will you start to out-market, out-sell, and
out-profit your competition.
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Bio: Debbie Allen is one of the world’s
leading authorities on sales and marketing. She is the author of five
books including Confessions of
Shameless Self Promoters and
Skyrocketing Sales. Debbie
has helped thousands of people around the world attract customers like
crazy with her innovative, no-cost marketing strategies and secrets to
sales success. Her expertise has been featured in
Entrepreneur,
Selling Power and
Sales & Marketing Excellence.
Sign up for her FREE 6-week e-Course
Business Success Secrets Revealed ($97 value) and take the
online business card quiz to rate your marketing online now at
www.DebbieAllen.com. |